Which Metrics and KPIs Should You Focus on to Fully Evaluate Your Employees' Performance?
01/28/2021, 2251 view
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Evaluating employee performance is necessary to acknowledge the potential of promising staffers, determine future workforce demands and motivate the members of your team by providing them feedback regarding their work.
Promotions, pay raises, transfers, lay-offs and terminations are also based on the results generated from employee performance measurement tools and techniques. These outcomes also determine what kind of development and training your team needs and whether your workforce meets the standards and goals of your establishment.
When you measure performance, you need to construct a subjective appraisal of each team member against clear-cut benchmarks. Hence, the importance of knowing which employee performance metrics and KPIs to allot more attention to.
We’re here to show you how to measure performance management, beginning with the metrics you need to prioritize.
1. Value of each employee
The first thing you need to remember when fully evaluating your employee is understanding and coherently determining what they bring to the table.
Let’s say you’re assessing an employee working in the sales department, you can set up employee performance metrics that dictate how much profit they produce by the end of the month. If you have an employee working with online marketing, you can see how well they’re performing by checking the number of conversions brought by their marketing campaign strategy.
Although it might be tricky to pinpoint the value brought by team members in administrative and customer service posts, they still have tangible deliverables and professional attitudes influencing your enterprise.
Each member of your workforce contributes something to your organizational objectives. If they fail to do so in their individual job positions, you will face wasted assets and failed initiatives, which makes staff value an important aspect in employee performance measurement tools and techniques.
2. Expenses to retain the employee
Cost accounting is one of the modern employee performance measurement examples you can use to fully evaluate your staff. It focuses on determining a staffer’s financial contribution to the company.
When you measure performance through cost accounting, you gauge the cost of retaining the employee and identify the benefits your company can obtain from them. You consider their wages, pension, insurance and other supplied company benefits, the expenses spent training and developing their skills, the quality of items and services they deliver, and errors, accidents, damages, and wastage involving the employee. Even the time spent assessing them is considered part of cost accounting.
Plenty of businesses fail because they neglect labor cost accounting as one of the key employee performance metrics to measure. Keeping an inefficient team member onboard means spending the entire actual cost they need to perform the tasks they were hired to accomplish. Determining costs spent to retain an employee is vital to eliminate wasteful activities and inefficiencies and improve or terminate your workforce's least productive members.
3. Employee working hours
Most tools to improve employee performance can track the work hours of individual staffers and entire departments. Employee monitoring software have functions that automatically document overtime work, tardiness, authorized and unauthorized leaves and absences, travel time, breaks and other distractions from professional obligations. To easily understand the recorded information, the system visualizes it through charts and graphs.
It’s essential to measure employee productivity appropriately. Kickidlier is a tool you can use to keep an eye on computer activity and automatically categorize each action on the PC as productive, unproductive or neutral. Idle time is also considered inaction by our software.
With Kickidler monitoring computer usage, you will obtain a video recording of each staffer’s actions. To determine their performance, you just need to watch these recordings during the duration you’re evaluating and you’ll see for yourself what your team member has accomplished or failed to achieve.
Ultimately, the choice to use traditional methods or switch to dynamic employee performance measurement tools and techniques is yours.
5. Meeting company goals
Making sure your staff meets your organization’s objectives is the heart of successful employee performance. It also enables your workforce to view how they fit into the bigger picture through their accomplished tasks.
To efficiently keep an eye on this metric and skip the traditional routine observation and interaction, you can use employee performance measurement tools and techniques such as automated solutions that measure staff productivity.
You can check employee performance statistics per week, generate a monthly report or gather your team to discuss overall operational efficiency on a sit-down to cap off the quarter.
Although there’s plenty of solutions available online, evaluating each team member with this metric varies, so sometimes, you might need to incorporate specially designed platforms.
Let’s go back to our customer service representative. To measure her performance, you might need a system that records the number of calls accomplished per day and their average call time. Meanwhile, for your sales representative, you might need an accounting platform that can document the revenue she has contributed to your company.
Whatever platforms you decide to implement, you can use these tools to improve employee performance by sharing data and insights you gain to your workers. Forbes believes that frequent feedback throughout the year is a good approach towards encouraging and boosting your workforce. Better than yearly performance reviews, these constant conversations should occur during when a project’s been accomplished, when a challenge rises or when a milestone has been hit.
Additionally, frequently sharing performance insights with your team members will also make sure they know how well they’re doing all year round.
6. Adapting to and dealing with quick modifications
According to People Matters, organizations must rethink their KPIs in a post-pandemic world. Due to the shift towards remote work practices, employee performance metrics also need to move to a more results-driven approach so that each staffer is assessed accordingly.
One of the employee performance metrics managers must consider is the ability and confidence of their workers to handle and incorporate sudden changes in business operations. This has been proven important with the coronavirus’s onslaught prompting teams to work from home.
Change is not a foreign concept to companies. Organizations constantly evolve in order to keep up with the world around it. Likewise, employees must be able to navigate change and look for the silver lining in every situation thrown at them, be it a global pandemic or a sudden shakeup in the establishment they work for.
Measuring your staff’s adaptability and agility requires looking at their enthusiasm when it comes to listening and adjusting to new information, instructions and remarks. You need to check whether they respond to challenging circumstances with a positive outlook and whether or not they rise above these circumstances.
You also need to pay attention to their ability to demonstrate dedication in switching priorities when the situation calls for it as well as their proactivity in tackling the unexpected. By executing these employee performance measurement examples, you’re developing your team’s interest in regarding various viewpoints and alternative approaches.
7. Compliance with company regulations
Failing to adhere to company policies and procedures and making exceptions to the rules can result in severe legal consequences. For instance, if an employee decides to share sensitive information about a client or leaks it online, your company can get sued and your organization’s reputation will most likely be damaged.
If you suspect that one of your team members is acting suspiciously or against your establishment’s regulations, you can use select tools to improve employee performance to curb these degrading actions. The best platforms for employee monitoring possess video monitoring systems that enable you to view what your employees are doing real time to prevent internal threats.
These functions allow you not only to keep an eye on a single employee. You can also keep tabs on your entire department as you evaluate them using other employee performance measurement examples.
Opportunities in constant feedback and evaluation
If there’s one thing managers must commit to seriously, it’s consistent employee feedback and evaluation. Assessing your team members results in constructive, actionable and trackable remarks and suggestions that can make any operational scenario flow successfully. Likewise, it gets rid of any inefficiencies that stop you from achieving your business goals.
A good combination of both old metrics and KPIs ushered by the new normal should do enterprises good when it comes to appraising employee performance.
In the end, it’s good to take note that we’re all struggling amidst a global pandemic. Some empathy and generous and well-constructed feedback from logical employee performance measurement examples can go a long way in boosting workforce morale, engagement and ultimately, loyalty and retention.
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