WE MAY NO longer be in school, but we still need report cards. Every employee of every business, no matter the industry, should be graded, as well as every owner! Grading allows us to focus on numbers important to our business: key performance indicators (KPIs).
Our KPIs
At Dog Krazy, we track different KPIs depending on the job function. For sales associates, we look at monthly averages for dollars per transaction, number of items per transaction, dollars per add-on and add-on closure. For groomers, we look at monthly averages for dollars per grooming transaction, dollars per retail transaction, dollars per grooming add-on and add-on closure. As an owner, my KPIs are a culmination of all employee report cards broken down by store and department, revenue to projection and cost to budget.
Our Report Card
We keep it simple and easy for the employee to understand. The report card tracks the four KPIs for the position and gives a grade of 1 to 5 for each, using historical data trends to grade. To determine the overall grade, KPIs are weighted. For example, number of items per transaction is more important than add-on closure. The monthly report card also shows year-to-date numbers and grades.
We revisit KPIs and grading annually and may make changes, but will also adjust more frequently for tenure and if too many team members are earning the highest or lowest grades. At Dog Krazy, we aim for 60 to 65 percent of our employees at a 3, 10 percent at a 4, 1 to 5 percent at a 5 and the remaining below a 3.
How We Use KPIs and Report Cards
Ultimately, we all want feedback on our work. Report cards provide an understanding of where we stand and what we need to improve upon. They also allow owners and managers to constantly and consistently coach to the numbers. With that feedback, we can all raise our grades! We also tie report cards to monthly bonuses, pay raises and promotions.
Report cards also allow us to foster friendly competitiveness within and between stores. This helps us grow year over year.
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One Final Thought
I have worked for companies that live and breathe by the numbers. If you aren’t hitting them, you get cut quickly. We keep in mind that everyone is different, and it takes some employees longer to learn and open up before they start performing to our ultimate expectations. As long as they are truly trying, they will always have a job with us.
If you have any questions or want help developing a report card for your team, feel free to reach out to me at cguinn@dogkrazy.com.
