Tiếng Việt
Introduction: When KPIs Are No Longer Just a Measurement Tool
In today’s modern corporate environment, Key Performance Indicators (KPIs) are no longer an unfamiliar concept. Originally designed to monitor performance and support strategic direction, KPIs serve as a compass for both organizations and individuals. However, behind these seemingly objective numbers lie potential psychological consequences for employees—especially when KPIs are poorly designed, assigned, or monitored. When misused, KPIs can shift from being a tool for guidance to becoming a source of pressure and stress.
In reality, the overuse or misuse of KPIs not only places pressure on job performance, but also silently erodes employee morale—leading to stress and even burnout. So how exactly are KPIs affecting workers’ mental well-being? And more importantly, how can organizations “detox” from KPI overload and turn these metrics into motivation rather than a burden?
Part 1: 7 Psychological Consequences When KPIs Become a Tool of Pressure
1. Constant Stress from Performance Pressure
One of the most visible effects is prolonged stress. Employees are constantly anxious about “failing to meet their targets,” especially when KPIs are set unrealistically high or don’t reflect actual market conditions. This ongoing worry gradually wears down their mental resilience and turns daily tasks into sources of tension.
For example, a sales employee may be required to make 300 calls per day, even though they can realistically handle only around 100 quality conversations. They’re forced to choose between “quantity” and “value”—a dilemma that creates long-term stress, undermines job satisfaction, and can eventually lead to burnout.
2. A Sense of Failure Despite Genuine Effort
When an individual’s entire effort is judged solely by a single number, employees can easily fall into a sense of failure if they don’t meet the target — even though they’ve tried their best.
This diminishes both self-esteem and work morale. Employees don’t feel recognized or appreciated—especially when falling short by just a few percentage points leads to being labeled as “underperforming.”
3. Loss of Intrinsic Motivation
Intrinsic motivation is what helps employees grow proactively without needing to be forced. But when KPIs are rigidly imposed, workers gradually end up working just to “meet the numbers,” instead of truly enjoying the work they do.
As a result, they become mechanical and superficial, losing their creativity and proactiveness—qualities that need to be nurtured over the long term.
4. Rise of Unhealthy Competition
When individual KPIs are pushed too high without a framework for collaboration, employees may resort to “hitting targets at all costs”—even if it means bending the rules, falsifying reports, or undermining their colleagues’ performance.
This breaks down the culture of solidarity within the organization, turning the workplace into a toxic and high-stress environment.
5. Physical and Mental Exhaustion (Burnout)
Burnout is a state of complete physical, emotional, and mental exhaustion—often occurring when individuals are placed under prolonged KPI pressure without adequate time to rest and recover.
They work more, sleep less, and no longer find meaning in what they do. This is one of the most severe and dangerous consequences of poorly implemented KPIs.
6. Reluctance to Propose Ideas or Innovate
When KPIs are overly focused on fixed numbers, employees tend to stick to “safe” tasks that are more likely to meet targets—instead of experimenting with new ideas. This suppresses innovation and continuous improvement within the organization.
7. Low Engagement, High Turnover
Prolonged dissatisfaction from being “forced into” rigid expectations often leads employees to merely “exist” rather than truly “engage” with the organization. They are more likely to leave as soon as a better opportunity arises, resulting in higher turnover rates.
Part 2: 5 Reasons Why KPIs Backfire
1. Unrealistic KPI Setting
Many businesses set KPIs from the top down, without surveying actual job conditions, accurately assessing each individual’s capabilities, or considering the specifics of the industry. This leads to an imbalance between expectations and actual capacity.
2. Lack of Employee Involvement in KPI Development
When employees are not involved in setting KPIs, they tend to see them as “top-down assignments” rather than goals they willingly commit to.
3. Lack of Flexibility
The market is constantly changing, yet KPIs are often “locked in” for an entire quarter or year. Without flexible adjustments, these indicators can quickly become outdated and no longer reflect the actual situation.
4. Overemphasis on Quantitative KPIs, Ignoring Qualitative Aspects
Many businesses focus solely on metrics like revenue, number of transactions, or conversion rates—while overlooking qualitative factors such as customer satisfaction, team collaboration, individual effort, and more.
5. Lack of Timely Recognition and Feedback
KPIs are not just about the final outcome—they’re also about the journey. Without regular check-ins or recognition of progress, employees may feel like they’re “working hard without anyone noticing.”
Part 3: Turning KPIs into Motivation – 6 Solutions Every Business Should Apply
1. Involve Employees in KPI Setting
Organize “co-create KPI” sessions between managers and employees. When staff are given the opportunity to contribute their input, they gain a clearer understanding of the reasoning behind each target—and begin to see the goal as their own.
2. Align KPIs with Individual Capability and Career Development Path
Each person has their own strengths and limitations. KPIs should reflect individual growth rather than direct comparisons between employees.
Example: Instead of assigning the same “500 million VND/month in revenue” target to everyone, consider each person’s actual capabilities and individual growth trajectory.
3. Combine Quantitative and Qualitative KPIs
It’s important not to focus solely on the final results, but to evaluate more holistically—including behavior, attitude, collaboration, proactiveness, and creativity.
4. Establish Timely Feedback and Support Mechanisms
Set up weekly or bi-weekly 1:1 check-ins between managers and employees to adjust goals, address challenges, and provide emotional support.
5. Link KPIs to Recognition and Non-Monetary Rewards
Rewards aren’t just about money. Public praise, internal recognition, or being nominated for training scholarships are all powerful motivators—often more impactful than rigid KPI numbers.
6. Communicate the Purpose of KPIs Internally
Businesses should regularly organize sharing sessions to redefine KPIs — not as a “burden”, but as a compass that helps each individual improve day by day.
Conclusion: KPI is a tool, not a whip.
KPI is not inherently bad. The problem lies in how businesses apply it and how employees perceive it. When KPIs are set with clear objectives, based on dialogue, grounded in reality, and aligned with personal development, they become a long-term source of motivation — not a cause of burnout or resignation.
Instead of using KPIs as a tool for control, use them to unlock human potential — that is the true path to sustainable growth from within the organization.
—————————————————————————————————————————
Contact information for Athena I&E Corporation:
- Office address:
- Ho Chi Minh City : 14th Floor, HM Town Building, 412 Nguyen Thi Minh Khai Street, Ban Co Ward, District 3, Ho Chi Minh City, Vietnam.
- Hai Phong Office: 26 Phan Dinh Phung Street, Hong Bang Ward, Hai Phong City, Vietnam
- Hotline: 1900 8622
- Support consultation email: contact@athenacorp.vn
- Website: Athenacorp.vn
- Fanpage Facebook: Athena I&E Corporation
Working hours:
- Monday to Saturday: 8:00 AM – 5:00 PM
- Sundays and Holidays: Closed
To receive advice on training services, consulting, or request support, you can call the support hotline or send an email to the addresses above. The Athena I&E team is always ready to assist and provide detailed information about courses, training programs, and consulting services for businesses.
Athena I&E is committed to providing you with optimal solutions to help develop your team’s capabilities and improve work efficiency. We are honored to collaborate with you!
