KPIs are specific, measurable criteria used to assess employee performance against agreed objectives.
Legislation: Related to Performance Management and Unfair Dismissal | Category: Performance Management
What is Key Performance Indicators (KPIs)?
Key performance indicators are specific, measurable criteria used to assess employee performance against agreed objectives. In Australian employment law, KPIs are relevant to performance management processes, termination for poor performance, and unfair dismissal cases where the reasonableness of performance expectations may be examined.
For KPIs to be effective in managing performance and supporting potential termination decisions, they should be clear, measurable, communicated to employees, and within the employee’s control to achieve. Unreasonable or uncommunicated KPIs can undermine termination decisions.
Key Compliance Points for Employers
- KPIs should be documented in position descriptions, performance agreements, or employment contracts
- Employees should acknowledge and understand their KPIs
- Regular feedback on progress towards KPIs supports performance improvement
- Failure to meet reasonable, communicated KPIs can justify termination if appropriate process is followed
- KPIs that are vague, contradictory, or impossible to achieve will not support disciplinary action
Frequently Asked Questions
What is Key Performance Indicators (KPIs)?
KPIs are specific, measurable criteria used to assess employee performance against agreed objectives.
Why is Key Performance Indicators (KPIs) important for employers?
Understanding key performance indicators (kpis) helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
