HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Establishing a performance plan

Establishing a performance plan involves five activities:

Determining your objectives Weighting each objective

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• Establishing Key Performance Indicators (KPIs) or measures for each objective • Agreeing target levels of performance for each KPI

1. Determining your objectives

These are the Key Result Areas to enable the business to achieve its objectives and each employee’s objectives will sit under one of these key results areas. At each level of the business and within each business group the manager should sit down with their team members individually and develop objectives that directly contribute to the business objectives.

2. Weighting Objectives

Each objective is assigned a percentage weighting; the total weighting for all of the objectives equals 100 per cent. Weightings are designed to provide direction and focus for employees as to what areas are of most importance. They will often vary depending on the role and the individual.

3. Establishing KPIs

For each objective there will be one or more Key Performance Indicators (KPIs) or measures. KPIs enable you to determine whether or not an objective has been achieved. To ensure effective measurement of an objective KPIs must be: Clear and quantifiable That is, they must be able to accurately demonstrate that an objective has, or has not, been achieved. They should not be subjective. Focus on results not activity While activity is important to produce results, it is the results that are significant. • •

Be relevant and realistic

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© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

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