Can KPIs Be Used Against You at Work?
Updated: Oct 10
Key Performance Indicators (KPIs) are a common tool. Employers use them to measure employee performance. They can help set clear goals and expectations. But some employees worry about how far KPIs be used against them. They fear targets may become a weapon in a workplace dispute.
This guide explains how KPIs work and whether they can be used against you. It also covers what you can do to protect yourself. The guide is aimed at employees and employers in the UK. It gives general information only, so take advice on your own case.
What are key performance indicators?
A key performance indicator is a measurable value. It shows how well a person, team or business is doing against a goal. KPIs are used to measure progress. Businesses use them to track results and to make decisions.
At company level, KPIs provide a view of the whole business. Typical examples are revenue growth, net profit and customer retention. These link to strategic goals and strategic objectives. Senior managers use them in decision making and in long term planning.
At individual level, KPIs are measurable targets. They track your performance against specific goals. They vary with your job role, but might include:
sales targets for a salesperson
customer satisfaction scores for a customer service role
project deadlines met for a project manager
the number of cases closed for a caseworker
error rates or quality checks for a production role
KPIs are meant to give a clear framework for success. They can cause problems if they are unrealistic or misused.
Different types of KPI
There are many different types of KPI. It helps to know which one your employer is using:
Output KPIs count what you produce, such as sales made or reports completed.
Quality KPIs look at how well you do it, such as error rates or customer ratings.
Time-bound KPIs set a deadline, such as finishing a project by a set date.
Behaviour KPIs look at how you work, such as teamwork or attendance.
Output and time-bound KPIs are the easiest to measure. Behaviour KPIs are harder, and so are more open to dispute. Whatever the type, a good KPI should be clear, fair and used to measure something you can influence.
What makes a KPI fair?
A fair KPI is usually specific and measurable. It is achievable for someone in your role. It is relevant to the job. It also has a time limit. Many employers describe this as a SMART target. A KPI that fails these tests is easier to challenge.
Leading and lagging KPIs
KPIs also differ in when they show results. Lagging KPIs look back at what has already happened. Examples are monthly sales, error rate and employee turnover. They tell you how a period went, but too late to change it.
Leading KPIs look ahead. They track activity that should lead to results later. For a salesperson, that could be the number of client calls or meetings booked. Leading indicators help you track progress while there is still time to act. Many fair KPI sets include both kinds.
Examples of KPIs by department
Different teams use different measures. Here are some common examples:
Sales: conversion rates, average deal size and revenue growth.
Customer service: response time, customer satisfaction scores and first-contact resolution.
Finance: cost per unit, return on investment and net profit.
Human resources: employee turnover, time to hire and training completed.
Operations: error rate, delivery times and output per shift.
Marketing: website visits, leads generated and cost per lead.
Notice that some of these depend on factors outside one person's control. Employee turnover, for example, is not something a single worker can fix. A KPI that you cannot influence is a weak basis for judging your performance.
KPI dashboards and reporting
Many employers show KPIs on a dashboard. This is a screen or report that pulls numbers together, often in real time. Business intelligence tools can do this automatically. Dashboards make it easy to track progress and compare teams.
They also carry risks. Numbers on a screen can look exact, but they depend on how the data is collected. If data is wrong, or counts the wrong thing, a KPI can give a false picture. If your figures look wrong, ask how they are calculated and raise it in writing.
How employers should set KPIs
Good KPIs start with business goals. An employer should first decide what the business wants to achieve. It can then choose a small number of measures that show whether the aim is being met. A long list of KPI targets is harder to meet and harder to manage.
Start with the goal. Link each KPI to a real business aim.
Choose the right measure. Pick a figure the employee can influence.
Set a clear target. Say what success looks like and by when.
Agree a start point. Record where the employee stands today.
Review often. Check results with the employee and adjust if conditions change.
Record the outcome. Keep a written note of each review.
Employers who follow these steps usually find that KPIs motivate staff. Employers who do not often find that KPIs create distrust. The difference is whether employees see the targets as fair.
KPIs and pay, bonuses and promotion
Some employers link KPIs to pay or bonuses. If a bonus depends on KPIs, check your contract and any bonus scheme. The rules should be clear about how targets are set and measured. They should also say what happens if circumstances change during the year.
KPIs may also affect promotion. If you think you were passed over because of an unfair measure, keep records. Ask how your results were scored compared with others. An employment lawyer can tell you whether this looks like unfair or discriminatory treatment.
How KPIs might be used against you
KPIs are normally meant to improve performance. But they can sometimes cause problems. These are the main ones.
1. Unrealistic targets
Employers might set KPIs that are impossible to meet. This leads to stress and poor results. For example, expecting a 50% rise in sales in a struggling market could set you up to fail.
2. Used as a disciplinary tool
Employers may focus on missed KPIs to justify disciplinary action. They may do this even when other factors played a part. For instance, if a deadline was missed because of too few resources, blaming the employee could be unfair.
3. Lack of context
KPIs do not always allow for outside factors. These include market conditions or team problems. This can lead to an unfair view of your work.
4. Discrimination or bias
KPIs might be applied unevenly. Some employees may get more leniency than others. For example, a manager might excuse one team member's underperformance but penalise another for similar results.
5. Changing the goalposts
Sometimes targets are raised part way through a period. Or they change without warning. This makes it very hard to measure performance fairly. You should be told clearly what the target is and how it will be measured.
Your rights as an employee
If you think KPIs are being used unfairly against you, know your rights. Employers should:
Set reasonable expectations. KPIs should be realistic and achievable.
Provide support. You should have the resources, training and guidance needed to meet them.
Act fairly. KPIs should apply consistently to all employees in similar roles.
Unreasonable or discriminatory use of KPIs could lead to claims of unfair treatment, constructive dismissal or workplace discrimination.
Capability and performance management
If an employer thinks you are not meeting the standard, it will often use a capability or performance process. This may include a performance improvement plan. A fair process normally involves:
telling you clearly what the problem is
giving you a fair chance to improve, with support
setting reasonable targets and a reasonable time to meet them
holding meetings where you can respond and bring a colleague or union representative
a right of appeal
The Acas Code of Practice on disciplinary and grievance procedures sets out good practice. Tribunals take it into account.
Dismissal for missing KPIs
Not meeting KPIs on its own is not usually grounds for dismissal. Capability can be a fair reason for dismissal in law. But the employer must act reasonably and follow a fair process. Missing a target once, because of factors outside your control, is unlikely to be enough.
Unfair dismissal rights depend on your length of service and on the rules in force at the time. Check the current position on GOV.UK: dismissal. Some claims, such as discrimination, do not need a minimum period of service.
Steps to take if you are concerned about KPIs
If you feel KPIs are being used unfairly, here is how to handle it.
1. Review your employment contract
Check your contract for clauses about performance measurement.
Make sure the KPIs fit the terms of your role and are reasonable.
2. Speak to your manager
Ask for a meeting to discuss your concerns.
Share examples of why the KPIs are unrealistic or unfair, and suggest changes.
3. Document everything
Keep records of KPI-related messages, such as targets, deadlines and feedback.
If a problem arises, clear records will support your case.
4. Ask for support or training
If you are struggling to meet KPIs, ask your employer for extra support, such as training or resources.
This shows you are proactive and committed to improving.
5. Seek advice
If you believe KPIs are being used unfairly to target or penalise you, consult:
your union representative, if you have one
an employment lawyer for professional advice
Acas, which gives free guidance in the UK
When KPIs could be unlawful
KPIs may cross the line into unlawful territory if they are:
Discriminatory. For example, setting KPIs that disadvantage employees with disabilities or family responsibilities. Employers may need to make reasonable adjustments for a disabled employee.
Used as a pretext for dismissal. If KPIs are manipulated to justify firing someone without proper cause, this could lead to an unfair dismissal claim.
If you suspect unlawful behaviour, raise the issue through your employer's grievance procedure or seek legal advice. Time limits apply to tribunal claims. You can read the basics on GOV.UK: employment tribunals.
What employers should do
KPIs work best when both sides trust them. Employers who use them well tend to follow a few simple habits:
explain every KPI in writing, and say how it will be measured
link KPIs to the real duties of the role
review targets regularly with each employee
give feedback early, not only at the annual review
treat similar cases in a similar way
record why a target was missed, not just that it was
These steps also protect the employer. If a case reaches a tribunal, clear records of fair treatment are very useful. They show that the employer acted reasonably.
Protecting yourself
To avoid trouble with KPIs, take these steps:
Clarify expectations. Make sure you understand your KPIs and what is expected.
Communicate regularly. Keep your manager updated on any obstacles that affect your performance.
Focus on solutions. If KPIs are unrealistic, suggest alternatives that are achievable and good for the business.
KPIs are a useful way to measure performance, but they can be misused. If you understand your rights and raise concerns early, you can stop KPIs being used unfairly against you. If you are unsure about your situation, seek advice and take steps to protect your position.
Fair and unfair KPIs: simple examples
The examples below are illustrations, not real cases. They show how the same measure can be fair in one setting and unfair in another.
Fair: a sales target based on last year's results, adjusted for market conditions, with monthly feedback.
Unfair: a sales target doubled in the middle of the year, with no extra support, then used to start disciplinary action.
Fair: a customer rating target for staff who deal with customers directly, with training on offer.
Unfair: a customer rating target applied to a back-office worker who never speaks to customers.
Fair: a project deadline that allows for normal delays and is reviewed if the scope changes.
Unfair: a deadline that stays fixed after the employer cuts the team or the budget.
If you recognise your own situation in the unfair examples, note the dates and facts. These details matter if you later raise a grievance. They also help a lawyer see whether KPIs be used against you in a way that breaches your contract or the law.
KPIs for remote and hybrid workers
Remote and hybrid work has made KPIs more common. Managers cannot see you working, so they rely on numbers. This is not unlawful. But it can lead to poor measures, such as counting hours online or messages sent.
A fair approach looks at the work done, not time spent at a screen. You should be told what is measured and why. Ask whether the figures match your real duties. Ask too whether they take account of any adjustments you need, such as for a disability or caring duties.
KPIs, monitoring and your data
KPIs often rely on data about you. That may include sales records, call logs or time recorded on a system. Employers who collect and use this data must follow data protection law. The Information Commissioner's Office gives guidance on monitoring at work. In general, employers should be open about what they collect and should not collect more than they need.
You can usually ask your employer for the personal data it holds about you. This is called a subject access request. It can help you see how your KPI results were recorded. Take advice if you are in a dispute, because the rules and timing can be technical.
A short checklist if you think KPIs are being used against you
Ask for your KPIs in writing, with the method of measurement.
Compare them with your contract and job description.
Keep a log of your results and any outside factors.
Ask for feedback and support, and note the reply.
Raise your concerns with your manager, then in writing if needed.
Use the grievance procedure if the issue is not fixed.
Take legal advice before you resign or sign any settlement.
In many cases, a calm and well-documented conversation solves the problem. In others, you will need advice. Either way, knowing how and when KPIs can be used against you puts you in a stronger position.
Frequently asked questions
Q: Can I refuse to accept new KPIs? You can negotiate KPIs if they are unreasonable. But refusing outright may strain your relationship with your employer.
Q: What if I cannot meet my KPIs despite my best efforts? Record your efforts and any challenges you faced. Ask for extra support or resources to deal with the issue.
Q: Can my employer dismiss me for not meeting KPIs? Missing KPIs alone is not usually grounds for dismissal. There must normally be a consistent pattern, and the employer must follow a fair procedure.
Q: Can an employer change my KPIs without asking? It depends on your contract and on what the change is. Small changes within your role may be allowed. Big changes to your terms usually need your agreement. Take advice if you are unsure.
