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Why employee value cannot be measured only by KPIs

Why employee value cannot be measured only by KPIs

As a business leader, I have worked with a range of performance tools, dashboards and scorecards. Key Performance Indicators or KPIs have long been our go-to instruments to track progress, monitor efficiency, and align teams with organisational goals. They offer structure, comparability and a sense of measurable achievement. But over the years, I have also come to understand one critical truth; KPIs alone cannot capture the full value of an employee.

I have seen high performers who exceed their KPIs quarter after quarter. And yet, I have also seen individuals whose real impact doesn’t show up in numbers. They are the culture builders, the silent anchors, the ones who coach others behind the scenes, keep the team grounded during uncertain times, or spot issues long before they surface on a dashboard. Their contribution is profound; but if we only look at KPIs, we may completely miss them.

Real employee value is nuanced. It is not just about what gets delivered but also how it is delivered and the effect it has on the wider ecosystem. For instance, someone who constantly steps up to train new team members, resolves tensions quietly, or brings a calm energy in chaotic situations may not have ‘mentorship’ listed in their job description. Still, they are instrumental to team stability. And when we think about long-term retention, succession, or culture health, their value becomes undeniable.

Another layer that often gets overlooked is the ability to influence beyond one’s immediate circle. In recent years, I have seen young professionals take the initiative to collaborate across functions, push for digitisation, or simply ask thoughtful questions that spark fresh thinking. These are not always roles with direct revenue impact, but they shape momentum. I believe the capacity to challenge constructively and build across silos is a strong indicator of leadership potential and it rarely features in a KPI metric.

One particularly telling experience for me was during a major transformation initiative, where we were piloting digital automation in a traditionally manual process. The person who eventually became the internal champion wasn’t the one with the best numbers. However, his openness to learn, rally peers and troubleshoot directly with tech teams made him rollout a success. That’s when I realised how limiting it would have been to evaluate him solely on delivery metrics.

Key performance indicators also fall short when it comes to context. Performance doesn’t happen in a vacuum. Someone operating in a newly-formed team or a volatile market may have lower numbers, but the effort they put in to steady the ship or rebuild trust can’t be captured in a metric. As leaders, we need to ask ourselves: are we seeing the full picture? Or Are we reading between the numbers?

I also find that many emerging leadership traits are intangible but incredibly valuable, for example, empathy, resilience, adaptability and curiosity. These show up in how someone navigates change, supports peers during tough phases, or manages ambiguity. None of these can be neatly plotted on a graph, but they are the exact qualities we need more of as businesses evolve.

To be clear, I am not advocating for the elimination of KPIs. They are essential for focus, accountability and strategic alignment. But we need to view them as just one part of a larger story. When we supplement KPIs with narrative assessments, peer feedback, mentoring impact and even informal recognition, we begin to see a fuller, more accurate picture of who is truly driving our organisation forward.

I have also noticed that when employees know they are being valued not just for what they bring to the table, but for who they are and how they contribute beyond the task list, they engage more deeply. They collaborate more, speak up more and invest in long-term growth, both their own and that of the organisation. It fosters trust, loyalty and a deeper sense of ownership.

In an era where we are navigating hybrid work, generational shifts and digital acceleration, I believe we need to evolve how we define performance and potential. Relying solely on output metrics risks overlooking the very people who hold our teams together, build culture and push us into the future.

A quote often attributed to Albert Einstein goes: “Not everything that counts can be counted, and not everything that can be counted counts.”

When I think about employee value, I no longer look only at dashboards. I ask, “Who uplifts others? Who is quietly influencing outcomes? Who is learning, unlearning and helping others grow?” These are the individuals who may not always top the charts but are needed to build the kind of organisations that last.

Source – https://www.hrkatha.com/by-invitation/why-employee-value-cannot-be-measured-only-by-kpis/

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