Measuring employee performance can be difficult to get right as not every role lends itself easily to measurement. Yet, it’s one of the most critical aspects of managing a successful workforce. When done right, performance measurement can boost productivity, employee engagement, and even retention. But how exactly do you measure performance effectively without it turning into micro-management and it feeling to employees like a stick to beat them with?
Why Measure Performance?
First of all, why should a business bother measuring performance? Tracking performance gives businesses insight into what’s working and what’s not. It highlights top employees who are performing well, identifies areas that are in need of improvement, and helps create tailored development plans. According to data from the CIPD nearly half, 48%, of employers use at least some basic measures to assess the performance of their staff.
The Challenges of Measuring Performance
While the benefits are clear, measuring performance isn’t without its challenges. Some of the most common issues encountered by employers include:
- Subjectivity – Personal bias can cloud judgment, it is best therefore where reasonably practicable to have clear performance measures that can be supported by data or other factual outcomes.
- Remote Work – Out of sight can sometimes mean out of mind. Measuring remote performance can be tricky.
- One-Size-Fits-All Approaches – Not every role can be assessed with the same metrics so within a business there will be different roles or groups of roles which need to be assessed separately and by using specific role related measures.
Key Methods for Measuring Performance
Here are a number of tried and tested methods that employers can implement to enable performance measurement:
- Setting Clear Key Performance Indicators (KPIs)
This method is generally seen as one of the most straightforward approaches. KPIs are specific, measurable goals that employees can work towards. For example, a sales manager might track monthly revenue targets, while a customer service agent’s KPI could be customer satisfaction scores. - 360-Degree Feedback
This method gathers feedback from peers, managers, and even clients. It offers a well-rounded view of an employee’s strengths and weaknesses although this method can at times be subjective if the assessment criteria do not have a particular focus. - Self-Assessment
Encouraging employees to evaluate their performance promotes self-reflection and accountability. By using the employee’s self-assessment alongside their manager’s views you can promote positive, constructive discussion and performance measurement.
Addressing the Challenges of Performance Measurement
When performance measures include subjective elements then bias can play a part. It is important therefore to train managers on unconscious bias and ensure performance reviews are data-driven and are not impacted by personality clashes or issues of employee favouritism. Using multiple sources of feedback helps to create a more balanced view. The assessment of remote working can be difficult and needs to focus on what employee achieve, what their outputs and if they are meeting set objectives. A number of online tools are available to track employee progress and performance so if you are managing a remote team then looks at resources such as Trello or Monday. As has already been mentioned not all jobs are numbers or data driven so you need to tailor your approach to performance measurement. If data is not available then you can assess performance based on quality, innovation or collaboration rather than strict KPIs.
Measuring employee performance doesn’t have to be a headache. By using a variety of different, relevant methods, tailoring approaches to specific roles, and embracing regular feedback employers can create a performance measurement methodology that drives results and keeps employees engaged and motivated. After all, performance measurement isn’t about policing employees. Performance measurement is about supporting employees to help them to maximise their potential and grow personally and professionally so that they have genuine job satisfaction and they can see the impact of their performance in the success of the company they work for.
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Why not also check out last weeks blog How to Use Performance Improvement Plans (PIPs) Effectively
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