20+ Employee Performance Metrics to Track

Performance management is vital for both employees and employers.

Employees need feedback to understand how their work measures up, and employers must have a clear system to evaluate and guide them.

Traditional appraisal methods, however, fall short. They often discourage teamwork, demotivate staff, and come with high costs due to their rigidity.

It’s clear that the way we track employee performance metrics needs a serious overhaul.

Let’s dive into what metrics you should be watching closely.

What Are Employee Performance Metrics?

Employee performance metrics are key indicators to assess how well an employee performs in their role. These metrics help managers and HR professionals make informed decisions about promotions, compensations, training needs, etc.

These metrics are also crucial for setting clear performance expectations and providing objective feedback. By tracking these metrics, organizations can identify high performers, support underperformers, and ensure everyone is aligned with the company’s goals.

Why Employee Performance Metrics Are Important To Evaluate Employees

Employee performance metrics help you understand who’s excelling and who might need a boost. Let’s break down why these metrics are crucial for evaluating your team.

1. Spot the Standouts and Those Struggling

By tracking performance, you quickly see who’s knocking it out of the park and who might be falling behind. This clarity is key to keeping your team balanced and productive.

2. Steer Your Training Efforts

The performance data points you in the right direction for training programs. It helps tailor development initiatives that suit individual needs, boosting overall skill levels.

3. Make Fair Pay and Promotion Calls

It helps you make decisions on who gets a raise or a promotion become much clearer with solid performance data. It ensures that your rewards go to those who truly deserve them, based on their contributions.

How To Measure Employee Performance Metrics

Measuring employee performance effectively starts with a clear, structured approach. Let’s walk through how you can set up a robust measurement system:

Step 1: Set role-relevant goals to gauge employee performance

Begin by working together with your employees to set goals that match their job roles and your company’s aims. You can use objectives and key results (OKRs) to capture the positive changes you expect to see. Break these goals down into smaller tasks that are easier to manage.

Don’t just focus on hard numbers; consider soft metrics like behavior, teamwork, and leadership skills. Then, convert all these goals and metrics into specific key performance indicators (KPIs) such as:

• Productivity
• Work quality
• Skill enhancement

This approach makes tracking and assessing performance straightforward and meaningful.

Step 2: Set benchmarks

To effectively measure progress, you first need a solid starting point. Here’s how to establish that baseline:

• Monitor Current Performance: Begin by observing and recording current employee performance levels. This gives you a clear picture of where things stand today.
• Use Data and Standards: Leverage internal historical data and industry standards to create benchmarks that are relevant and challenging yet attainable.
• Define Peak Performance: Identify what top performance looks like in your organization to set a high standard.
• Identify Gaps: Compare each individual’s current performance against these benchmarks to pinpoint areas where improvements are needed. This comparison will guide your next steps in coaching and development.

Step 3: Give employees a guide on how to improve and monitor their progress

It’s crucial to track performance and actively guide your employees on improving and achieving their goals. Start by providing clear, actionable steps and the necessary resources to help them enhance their skills and work quality.

For quality control, ask these questions:

• Insight Quality: How many insights were in the report?
• Actionability: Was the way forward actionable and realistic?
• Research Support: Did they back the insights up with thorough research?
• Presentation Effectiveness: How well were these insights presented?
• Stakeholder Impact: Were the stakeholders convinced?

Regular feedback is the key here—keep them informed of their progress through frequent updates. If possible, streamline this process by automating performance reviews to ensure consistent evaluations. This approach ensures everyone knows how they’re doing and what they can do better.

20+ Employee Performance Metrics To Track

Understanding employee performance is crucial, and one effective way to do this is through various metrics that capture different aspects of work quality. Here’s a look at some key work quality metrics:

1. Work Quality Metrics

These metrics evaluate the quality of an employee’s output, ensuring it aligns with your organization’s standards and goals.

1. Management by Objectives: Set clear, measurable goals together with employees that directly contribute to your company’s objectives.
2. Subjective Appraisal by Manager: Encourage managers to conduct thorough and regular performance reviews, focusing on both strengths and areas for improvement based on daily observations.
3. Product Defects: Implement quality control processes that track and record defects in product outputs.
4. Number of Errors: Monitor and record errors in tasks such as coding or document preparation. This will help you develop targeted training sessions that enhance precision and attention to detail.
5. Net Promoter Score (NPS): Regularly survey customers to measure their satisfaction and likelihood to recommend your services.
6. 360-Degree Feedback: Set up a system where employees receive anonymous feedback from all levels—peers, managers, subordinates, and clients.
7. 180-Degree Feedback: Focus on obtaining detailed feedback from direct colleagues and managers. Use this feedback to support one-on-one coaching sessions and performance discussions.
8. Forced Ranking: Conduct periodic evaluations where employees are ranked relative to their peers.

2. Work Quantity Metrics

These metrics focus on the volume of work an employee produces, which is critical for understanding productivity levels and operational efficiency.

1. Number of Sales: Regularly track and record the total sales completed by each employee.
2. Number of Client Contacts: Monitor how frequently employees interact with potential clients and asses the effectiveness of your outreach strategies.
3. Number of Phone Calls: Keep a count of all sales-related or client interaction calls made by employees.
4. Number of Company Visits: Track the number of times employees visit client or partner sites.
5. Number of Active Leads: Maintain a tally of all potential clients that are actively being pursued.
6. Handling Time and First-Call Resolution: Measure how efficiently your team handles calls and whether issues are resolved on the first call.

3. Work Efficiency Metrics

​​These metrics help determine how effectively employees use their resources to produce quality outputs.

1. Balance between Quantity and Quality: Regularly assess the trade-off between the volume of work and the quality of outputs.
2. Output vs. Input Analysis: Compare the results achieved (output) with the resources used (input). This analysis can identify areas where efficiencies can be improved.
3. Cost Effectiveness: Calculate the cost per unit of output to gauge financial efficiency. Lower costs per unit indicate higher cost-effectiveness, which is crucial for budget management.
4. Time Management: Evaluate how well employees manage their time by comparing actual task completion times against planned durations.

4. Organizational Performance Metrics

These metrics look at the broader impact of employee performance on the organization’s overall success.

1. Revenue per Employee: Measure the revenue generated per full-time equivalent. This metric helps understand overall productivity and effectiveness at generating revenue.
2. Profit per Employee: Determine the profit each employee contributes to the organization. It’s a useful measure for assessing how labor costs relate to profit generation.
3. Human Capital ROI: Assess the return on investment in human capital by comparing the cost of the workforce to the revenue the workforce generates. High ROI indicates the effective use of employee skills and abilities.
4. Absenteeism Rate: Monitor the rate of unscheduled absences as it can affect productivity and morale. Lower rates typically reflect a more engaged and satisfied workforce.
5. Overtime per Employee: Track the average overtime hours per employee to gauge workload and operational efficiency. High overtime may indicate staffing shortages or inefficiencies.

How Does PeopleStrong Help?

PeopleStrong offers a comprehensive HR Tech 4.0 platform designed to manage the employee lifecycle from hire to exit. It simplifies work life for over 2 million employees at more than 500 large enterprises across AsiaPac.

Take, for instance, how PeopleStrong revolutionized performance management for Oman Air, handling a workforce of over 1500 employees with their “High Fly” system.

Implemented in just 75 days, this DIY, easy-to-use platform enables crew members to quickly select and update their KPIs—taking only about 2 minutes each week.

This system supported continuous monitoring and unbiased performance evaluation thanks to a scientifically designed competency framework and an automated rating mechanism that eliminates bias.

The result?

• Smooth transition to quarterly objective and key results (OKRs) with minimal administrative overhead.
• Enhanced data visibility enabled quick adjustments in human resource planning.
• Improved performance reporting processes appreciated by business leaders.
• Enabled more effective and agile HR operations, directly impacting overall business strategy execution.

Start Elevating Performance Management for Business Success Today

Effective performance management is crucial—it’s all about aligning your team’s efforts with your business goals to foster growth. This process should be as smooth and insightful as possible, which is where a solid system comes into play.

PeopleStrong’s performance management system simplifies setting and tracking goals, supports continuous and comprehensive feedback, and adapts to your needs, helping align your team’s efforts with your company’s vision. Think about the edge this could give your business.

Ready to see it in action?

Check out PeopleStrong and experience a smarter way to manage performance.