Sarcouncil Journal of Economics and Business Management

Abstract: Every organisation has guidelines or ways to assess the performance of its employees, which can be done using the Key Performance Indicator. The purpose of this study was to determine the effect of the Key Performance Indicator on the performance of employees of PT Sawitta Unggul Jaya (SUJ) Tanah Tinggi Negeri Baru District Bilah Hilir Labuhanbatu Regency, North Sumatra Province The results of the study indicate that the Key Performance Indicator variable and employee performance have valid and reliable criteria, for the simple regression equation obtained the results Y = 6.878 + 0.383 X, this shows that there is a positive direction coefficient of the Key Performance Indicator on employee performance, then the partial hypothesis results that the Key Performance Indicator has a positive and significant effect on employee performance, this is the result of the regression equation. Key performance indicators have a positive and significant impact on employee performance by providing clear objectives, motivating employees, enabling performance monitoring, encouraging accountability, enabling fair performance appraisals, and encouraging continuous improvement efforts within the organisation