The Essential KPIs Every Service Department Must Track

Introduction - KPIs Every Service Department Must Track

For construction and engineering businesses, especially those running lift engineering, FM service teams, M&E services, or technical maintenance divisions, the service department is the heartbeat of predictable revenue.

It handles call-outs, planned maintenance, aftercare, safety inspections, LOLER reporting, and customer relationships. Yet many SMEs don’t truly know if their service department is performing well beyond whether customers complain.

This lack of visibility often leads to falling margins, missed invoicing, weak contract profitability, and inefficiencies that go unnoticed for months. In this guide, we break down quantifiable KPIs, qualitative indicators, operational behaviours, and financial signals that show you whether your service department is operating at a high standard.

If you haven’t already, you may find our blogs on Monthly Finance Health Checks and How Strong Financial Leadership Prevents Firefighting useful as they link directly to departmental performance and visibility.

Let’s unpack what you really need to track.

1. Quantifiable KPIs: The Numbers That Tell the Truth

Quantifiable KPIs give you measurable evidence. Without them, you’re managing blindfolded. For service departments, especially those dealing with call-outs, maintenance contracts, and statutory inspections, these KPIs are non-negotiable.

They directly impact:

• Profitability

• Engineer utilisation

• Customer satisfaction

• Invoicing accuracy

• Contract retention

• Cash flow

  
  

Most SMEs underperform because they track the wrong numbers, typically volume rather than outcome. A modernised KPI set gives leaders early warning and control.

Improved quantifiable KPIs:

• Increase service margins (often by 5–10%)

• Reduce repeat visits

• Improve engineer planning efficiency

• Allow tighter cash flow forecasting

• Strengthen contract renewals

  
  

You can download KPI templates and dashboards on our resources page: https://www.jonesfa.co.uk/resources.

Key Quantifiable KPIs to Track

1. Call-Out Response Performance

• First-time fix rate (%)

• Average response time

• Average resolution time

• Repeat call-out ratio per asset

  
  

Need to Review: Low first-time fix = poor van stock, lack of training, bad scheduling.

Strategy: Track engineer-specific performance and pair training to asset types.

2. Planned Maintenance Delivery

• PPM completion rate (%)

• PPM completed on or before target date

• Hours booked vs hours planned

• Outstanding PPM backlog

  
  

Need to Review: Backlogs hit compliance, cause customer disputes, and impact renewals.

Strategy: Weekly backlog review + monthly compliance dashboard.

3. Safety Reports & LOLER Compliance

• Reports completed on time

• Number of defects raised

• Number of defects resolved within SLA

• Follow-up work conversion %

  
  

Need to Review: Safety delays create serious legal, compliance, and reputational risks.

Strategy: Automate report-to-quote workflows to reduce bottlenecks.

4. Contract Performance & Profitability

• Profit per contract

• Price vs labour hours variance

• Contract renewal success rate

• Engineer utilisation (%)

  
  

Need to Review: Unprofitable contracts often hide in labour overrun, not sales pricing.

Strategy: Review labour assumptions quarterly and reset contract pricing.

5. Financial KPIs

• Invoices raised vs jobs completed

• Average value per call-out

• Margin per service line (call-outs, PPMs, reports)

• Days to invoice (speed matters)

  
  

Need to Review: If invoices lag behind job completion, cash flow exposure increases.

Strategy: Implement a 48-hour invoicing target for all completed jobs.

2. Qualitative KPIs: The Behaviours Behind the Numbers

Numbers show performance. Qualitative KPIs show why performance looks the way it does.

Why Qualitative KPIs Matter

The service department relies heavily on communication, planning, teamwork, and customer handling. Weaknesses in these areas create silent failures long before the numbers reflect them.

High-quality behaviours lead to:

• Happier customers

• Lower complaint volumes

• More upsell opportunities

• Better engineer morale

• Reduced stress across the business

  
  

Poor qualitative performance almost always results in cash and operational problems later.

Key Qualitative KPIs to Track

1. Communication Quality

• Do engineers leave clear notes?

• Do planners provide accurate ETAs?

• Are customer updates proactive or reactive?

• Are issues escalated early or at the last minute?

  
  

Strategy: Implement a “communication checklist” on every job sheet.

2. Customer Satisfaction Signals

Not formal surveys, simple operational clues:

• Reduction in complaints

• Positive feedback patterns

• Growth in referrals

• Fewer escalations to director level

  
  

Strategy: Track complaints AND reasons, patterns show training gaps.

3. Engineer Professionalism

• Asset care standards

• Report clarity

• Site behaviour

• Consistency

  
  

Strategy: Quarterly site audits by supervisors or service managers.

4. Planning & Scheduling Discipline

• Are jobs grouped logically?

• Are routes planned to reduce travel?

• Are emergency call-outs handled efficiently?

  
  

Strategy: Review planning processes monthly for inefficiencies.

3. Additional Areas Directors Should Monitor

Asset Risk Level

High-risk assets (e.g., lifts with recurrent faults) require closer tracking.

Quote Conversion

Low conversion = poor communication, slow turnaround, or pricing misalignment.

Training & Skill Gaps

Track the type of call-outs per engineer, skill-level differences become obvious.

Stock & Van Management

Poor van stock = low first-time fix success.

4. How to Build a Full Service Department Reporting System

Directors do not need 100 KPIs, they need 10 that matter and a dashboard that displays them clearly.

Strategy to Implement

1. Build a simple weekly report covering the KPIs listed above

2. Use job management software data (Joblogic, ServiceM8, simPRO, Protean)

3. Split KPIs by:

   • Financial

   • Operational

   • Customer

   • Engineer-level

4. Review the dashboard in every monthly leadership meeting

5. Link KPIs to bonuses, progression, and accountability

   
   

If you need help building this for your team, download our free Operations & KPIs Toolkit here:https://www.jonesfa.co.uk/resources.

Key Takeaways

• Track both quantifiable (numbers) and qualitative (behaviours) KPIs for a full performance view.

• First-time fix rate, PPM completion, van stock, and invoicing speed are key drivers of profitability.

• Qualitative indicators predict future operational or cash flow issues.

• A structured KPI dashboard transforms the service department into a consistent profit centre.

If you want JFA to design your full service KPI dashboard or monthly service performance scorecard, visit www.jonesfa.co.uk or contact us for support.

Wrapping up today's insights, tomorrow we simplify another accounting challenge.