On the Elofy platform, your company can choose between using OKRs or the individual goals contract.
The goals contract is the formalization of individual goals with each employee, usually linked to variable compensation programs (bonuses).
Within each contract, the goals have different weights and the sum of their progress defines the percentage of achievement of the employee's goals contract.
In addition, HR can define achievement ranges for each goal, for example, a goal can have 03 achievement ranges (80, 100 and 120), in this case, progress will only start to be counted, from 80% and it only goes up to 120%, even if you reach the value of 150%.
In Elofy, these ranges can be of two types: 3-note ruler or 5-note ruler (notes = score). In each goal, as long as the necessary profile permission is activated, it is possible to define the percentage of each grade in the progress ruler. Example:
Thus, if a goal has already reached 120%, it has a score of 04. Furthermore, in the case above, the progress of the goal will only be registered up to 140% and it only starts to be valid from 60% onwards, as explained above.
And behind the use of target ranges, there are some calculation rules used by the system, namely:
Each goal has an individual weight that together reaches 100% of the contract;
Each goal has a score, based on the defined achievement range;
Each goal has a weighted note that is calculated from the multiplication between score and weight;
The contract score is the sum of the weighted scores of the respective targets
EXAMPLE: User X Goals Contract
Contract note: 0.49 + 1.96 = 2.45
Goal 01
Weight: 20% (0.2)
Score ruler note (achievement range): 2.43
Weighted note: 0.49
Goal 02
Weight: 80% (0.8)
Score ruler note (achievement range): 2.45
Weighted note: 1.96
And at the end, you can also see the overall score of the existing contracts which will be the sum of the contract scores divided by the total contracts:
And if the company adopts guidelines in the goals contract? What will be the director's final grade? In this case, if there are only contracts below the driver, the score will be the sum of the contract scores divided by the total contracts.
EXAMPLE: Director of the company
Contract 01 (NOTE - 4)
Contract 02 (NOTE - 2)
Contract 03 (NOTE - 3)
Director grade: 4 + 2 + 3 / 3 = 3
But if below the driver there are also directly aligned goals, it is necessary to add the weighted scores of the existing goals and the final value will be added to the scores of the contracts also aligned and everything will be divided by the total value of contracts added to the value of the calculation made with the goals .
EXAMPLE: Director of the company
Contract 01 (NOTE - 4)
Contract 02 (NOTE - 2)
Contract 03 (NOTE - 3)
Target 01 (WEIGHTED NOTE - 4)
Target 02 (WEIGHTED NOTE - 1)
Target 03 (WEIGHTED NOTE - 3)
Calculation of goals: 4 + 1 + 3 / 3 = 2.67
Director grade: 4 + 2 + 3 + 2.67 / 4 = 2.91
And, finally, if basic indicators that have ranges of achievement are used in the creation of the contract, what happens? In this case, it will depend on the type of indicator update: manual or automatic.
If the base indicator is a manual type, even if it has the achievement range ruler, it will be possible to create its own rulers in the individual goals to record progress.
But if the base indicator is of the automatic type, it is necessary to respect its reach range ruler, which is reflected in the individual goals created.
Ready!
Now, you already know the calculation logic behind the target ranges. If you have any questions, please contact our team, we will be happy to help!