How to Measure Employee Performance

The HR team or department manager will typically review the policies and standards with new employees on their first day. Workers are told and agree to the objectives set for them to continue their employment with the company and contribute to its success.

Because it is human nature for most people to complete the minimum work required, the only way to ensure workers are meeting the objectives set for them on that first day is by regularly measuring their performance.

Monitoring and accurately tracking worker performance will improve the company's culture and morale while simultaneously increasing worker efficiency.

Here is an overview measuring employee performance and why it's so important-

Why Measure Employee Performance?

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An informed management team that is aware of the day-to-day workflows is better equipped to run a successful business. Tracking employee performance to ensure workers are meeting their individual goals makes it easier to know who to reward and who needs further monitoring.

Here are the most essential benefits of using performance metrics to track employee productivity-

1. Increase Worker Efficiency
One of the more important arguments in favor of performance evaluating is that there will be an improvement in worker efficiency over the long term.

Performance measures include a performance review, utilizing a performance rating system, or giving a monthly employee evaluation. Once critiqued, workers can be monitored through positive feedback, encouragement, and further training so they can continue to make improvements.

2. Track Workers Individually
For large businesses that employ thousands of workers, it's easy for individuals to fall through the cracks.
Utilizing a mechanism to measure employee performance ensures that everyone is held to account and doing their fair share.

The leadership team can determine which workers are meeting management objectives and fulfilling their duties outlined in their job descriptions.

Management can reward high-performing employees by offering promotions, raises, and additional responsibilities. Underperformers can be encouraged to improve through warnings of a potential demotion or termination.

3. Determine Appropriate Compensation
Managers can utilize employee evaluations to tie performance to compensation. An employee who consistently proves to be a productive and positive contributor to the workplace deserves more pay than someone who puts in less effort.

Implementing regular performance reviews will help management see how to compensate workers appropriately. Offering competitive compensation will also encourage workers to increase their productivity to receive more pay.

4. Improve Productivity
After working to increase efficiency, track individual performance, and determine appropriate compensation, there will be an increase in worker productivity.

Managers can use data-driven analysis to continue encouraging workers to meet their performance metrics. With regular feedback, time management, and incentives, the workforce and company culture will continue to improve over time.

Measuring Performance

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Some of the best practices to gauge performance and make certain the business is on the best path forward include-

1. Measure Punctuality
Those who are frequently late to work or don't complete all of their required tasks are unlikely to achieve performance goals.

Enforcing a strict set of policies to encourage punctuality and reward those with timely punch-in data is essential to maintain a productive workforce.

Furthermore, if several workers are coming in late every day it will encourage others to not take punctuality seriously. Revisit the human resource policies and share them with workers to ensure everyone is on the same page.

2. Track Quality of Work
Employees who complete their tasks and projects on time are meeting their job performance standards.
Track whether completed tasks are meeting standards, if negative attitudes are affecting work quality, or if employees know how to set goals for themselves. Having the answers to these questions will help to pinpoint any problem areas and make improvements.

3. Observe Company Culture
Bad habits can affect employee performance levels over time. Those who engage in gossip, taking excessive breaks or long lunches, and using computers to check social media are affecting the entire company culture.

Bad habits tend to be contagious and it's best for management to set strict rules to prevent the culture from becoming too lax.

4. Review Presentation
Most businesses require workers to dress a certain way or follow specific protocols that promote a professional environment.

If workers are disrespecting management by wearing casual clothing or portraying a careless appearance, it can make the business look bad as a whole.

There's also evidence to show that one's presentation correlates to one's productivity. Consider implementing a business-casual dress code to promote a professional culture in the workplace.

5. Talk to Customers
Often the best way to assess employee performance is to talk to customers. Ask how they've been treated by workers, what their experiences are, and if they've encountered any problems or inefficiencies.

Let workers know that there will be regular customer surveys to evaluate their performance. Just providing this type of accountability will encourage workers to take their jobs more seriously and meet their performance objectives.


In conclusion, here are the key takeaways to remember about measuring employee performance-

  • An informed management team that understands how workers are performing is more equipped to make better business decisions.
  • Utilizing performance metrics to measure employee work quality will increase worker efficiency, track workers individually, determine appropriate compensation, and improve productivity.
  • Best practices include measuring punctuality, tracking the quality of work, observing company culture, reviewing worker dress code, and talking to customers.