Organisations engage in performance management to ensure that all the company’s resources are optimised to help achieve its business goals. Business activities are worth tracking to ensure they yield the expected output. By monitoring the right performance metrics, you can identify the obstacles to high performance, create solutions, and even replicate circumstances for ideal performance.
Measuring employee performance also helps the employee understand what the organisation’s expectations are regarding their work so that they can aim in the right direction. Furthermore, clearly stating the performance metrics employees will be assessed on reduces staff turnover as employees are already adequately engaged with the right expectations, resulting in increased performance across teams.
Here are some critical performance metrics your business should be tracking and measuring:
1. Goal-Based Metrics
These metrics will measure an employee’s productivity at work and look at indicators such as goals activated, completion rate, and unmet goals. Goal-based metrics make it possible for the employee to contribute their own quota to helping the company meet its objectives. You can do this by creating a team’s objectives based on their function and on the company’s objectives, and then carving out goals for individual team members. Additionally, goal-based metrics give an insight into the level of the appraised employee’s effectiveness at their job.
2. Quality of Work
Employees who frequently do sub-par work can be a pain to their co-workers and (directly or indirectly) to clients. The quality of an employee’s work can cause a company to gain or lose customers and affect the standard of the product offering or service delivery. Therefore, it is essential to measure this metric in employee appraisals, and an ideal way to do this is through 360-degree feedback.
3. Engagement Metrics
Performance appraisals should also survey the level of employee engagement across teams in the organisation. Performance appraisals should be done frequently so that management can take appropriate actions to sustain employee engagement and motivation and prevent unnecessary turnover. Management can also measure employee engagement through surveys that can cover things important to employees, such as satisfaction with compensation, work-life balance, alignment levels, wellbeing, work culture, etc.
4. Diversity, Equity, and Inclusion (DEI) Metrics
Diversity, equity, and inclusion metrics require appraisers and company leaders to take a holistic look at the company, viewing performance scores by gender, age, location, and other demographics. Measuring DEI metrics helps a company take note of possible unaddressed biases and cultivate a more inclusive workplace.
5. Training and Development
Employers who invest in the training and development of their staff would also like to know that employees are engaging with training sessions and that the learnings are used in their daily work lives. This can be done by measuring the number of employees who completed the training sessions, observing engagement and work quality, comparing employee appraisal scores on a specific skill before and after receiving training on it, etc.
Performance management is critical to an organisation’s success, so looking at the right data helps company leaders ensure that staff are productive, engaged, and that the right improvements to support their productivity are always in place. It’s equally important to craft a performance management process that gives employees the opportunity and support for continuous improvement.
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