The Golden Metrics for Measuring Employee Performance

Performance management is a crucial part of creating a work environment where employees and companies thrive. This process starts with clear goals and should offer consistent feedback for continuous improvement. Ultimately, measuring employee performance does more than increase the productivity of an organization. It also helps keep employees engaged in the success of the organization. What are some of the best metrics to consider when establishing employee performance? Here are the golden metrics for measuring employee performance. 

Best Ways of Measuring Employee Performance 

Not every type of employee output can be measured in the same way. You can divide metrics between work quality and quantity, as well as work efficiency. Each area requires both the employee’s subjective review of their own performance as well as an evaluation by their employers. These reviews should be quarterly and not just annually to allow the worker to adjust their behaviors based on feedback they receive throughout the year.  

Some gold-standard employee performance metrics include: 

  • Punctuality is an easy metric that can apply across any industry and any type of job. Employees who get to work late or are absent frequently will likely not meet their overall performance objectives. Punctuality is a metric that you and the employee can target and work on together.  
  • The quality of the employee’s work matters. Finding a way to measure the output of your employee is the best way to know if they’re producing average or outstanding work. Is the employee committed to producing the highest quality output? Are you tracking the number of errors in the work they’re doing? Are they maximizing their efforts to produce their best work? Poor quality work could translate to lost customers or products that don’t measure up.  
  • The quantity of work the employer sends out is also essential. Imagine not tracking the volume of sales from that department, and you’ll understand why quantity is just as important as quality. How many deployments did your IT workers successfully handle? Marketing should have extensive metrics on customer engagement. And so on. 
  • You should also measure attitude. Tracking disruptive or negative behaviors is just as important as monitoring good behavior and the quality of work. Look for non-compliance with rules or disrespectful behavior with co-workers. Does the employee fit the core values of the company?  

The metrics you establish will differ by position. For example, call center customer care teams usually have extensive metrics to follow. This could include the average time it takes to handle a call. How many calls were able to be revised in one customer contact is a solid metric to consider. Feedback directly from customers is a gold standard metric for any position in your company. But you should also measure how quickly a call was answered.  

While it’s impossible to track employee performance in one or two metrics, establishing both qualitative and quantitative metrics for each employee will move teams toward improvement. But reviews should include feedback from employees and their managers to make sure the worker feels like the evaluation and goal-setting process is valuable for more than just getting a raise. 

Partner With a Trusted EOR.

FoxHire takes the hassle of managing employees out of your hands. As an employer of record, we help companies manage the delicate and regulatory complex process of the HR process. Talk to us about how you can work smarter.