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Key performance indicators (KPIs) are measurable values that demonstrate how effectively a company achieves key business objectives. KPIs are important because they provide a value to compare against your current performance. KPIs clearly show whether or not you are meeting your objectives. By implementing KPIs in your company, you will be able to set goals, devise a strategy to achieve those goals, and evaluate your performance along the way. There are numerous KPIs that can aid in the improvement of facility operations and productivity. The details below provide a well-rounded foundation for maintenance and reliability planning.
Employee Satisfaction Score
One in three employees in the UK is unhappy in their job. An unhappy workforce may be a symptom of underlying issues affecting productivity. There could be something impeding employees' ability to complete their tasks, resulting in lower job satisfaction, or unsafe working conditions. Dissatisfied employees, in either case, will generally result in a high turnover rate, which raises staffing costs.
A high number of employee complaints could indicate poor management, unsafe working conditions, poor maintenance practices, toxic working environments, or other issues. The number and nature of these complaints can provide useful information about facility management practices.
Workforce Productivity
Your workforce's overall productivity indicates how well your employees complete tasks on time. If it's low, it could indicate that something is impeding productivity, or it could simply be the result of low morale.
The amount of time it takes to complete maintenance work orders demonstrates the effectiveness of your maintenance planning and workflows. If work orders appear to be taking an abnormally long time to complete on average, this could be a sign of poor planning or process obstacles that slow completion. Finally, slow resolution times can have an impact on reliability because preventive maintenance tasks are not completed on time.
Planned Maintenance vs. Reactive Maintenance
According to a recent State of Facility Management report, only 18% of respondents strongly believed that their teams were more proactive than reactive. After you've determined your ratio, you should drill down to determine where those reactive work orders are coming from. You should ideally perform more planned maintenance than reactive maintenance.
If the time spent on reactive maintenance exceeds a certain threshold when compared to planned maintenance, you are most likely not keeping up with necessary preventive tasks. Either prevention is not prioritised as it should be, or something is impeding the timely completion of PMs.
Gross Facilities Management Costs per m²
Measuring gross FM costs per square foot can provide facility managers with an idea of how much budget is required to keep the facility operational. The average figure varies by industry, so tracking this KPI over time will yield the best results. An excessively high cost may indicate that more funding is required, or it may indicate that processes need to be streamlined somewhere.
Maintenance costs per square foot or meter provide facility managers with an idea of how much budget they will require. Furthermore, tracking this number over time can reveal whether maintenance processes are improving or deteriorating.
Facility managers can use operations costs per square foot to determine how well their equipment is maintained, how efficiently their workforce is utilised, and what budgetary changes may be required. If operating costs rise over time, there may be a problem with asset maintenance. If they are decreasing, it could indicate that current plans are working.
Maintenance Cost vs. Budget
Maintenance represents around 40% of total facilities management costs. The goal in tracking this KPI is to determine whether your team is on track to meet or exceed budgetary targets. During budgeting season, funds are frequently distributed based on immediate needs rather than departmental outcomes. When it comes to funds for projected needs, facility leaders who don't know how to communicate data to their organisations can quickly become overlooked.
To get the funds you require in your budget this year, you'll need data to support your request. This is where KPIs come in handy. Your findings can assist you in communicating your department's data-backed results as well as the long-term impact the required funds will have on your organisation. It's critical to determine why you're not on track to meet your objectives. Instead of scrambling around at the last minute, find ways to be flexible and proactive with budget planning.
If You Don’t Know Where You Are Going, You’ll End Up Someplace Else
To summarise, what is measured is managed. Employee morale, culture, and capacity, among other factors, all influence performance. KPIs make performance management easier by allowing everyone to see not only what they're doing, but also what others are doing. This transparency ensures that everyone is pulling in the same direction, which simplifies communication because the answer to the question "How are we doing?" is bundled into a clear number rather than hidden under spreadsheets and services or, worse, behind guesses. So, to increase accountability, track your key KPIs openly and transparently.
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