How to Measure Employee Performance?

Evaluating employee performance is an important step for businesses to achieve continuity and continuous success. This process, carried out by human resources, helps to increase the percentage of many positive criteria such as performance improvement, employee motivation and business success.

Performance measurement may differ for different positions and business types. However, there are common and general measurement techniques that every business can use.

Performance measurement usually requires precise figures. However, this is not always possible in the performance management process. This is why human resources professionals usually aim to measure the qualitative.

Common Methods Used to Measure Employee Performance

Objectives and Key Results (OKR):

Establishing numerical key results makes tangible the progress a team is making towards its goals. Objectives should be specific, measurable, achievable, relevant and time-bound. In this process, it is important to provide adequate support to employees.

360 Degree Feedback:

In 360-degree feedback, employees are asked to evaluate themselves and their teammates. First, managers give feedback about employees, then employees give feedback about their managers. Employees also give feedback to their teammates and themselves. This method offers a more objective perspective as it includes different opinions.

Output and Result-Oriented Measurement:

One of the methods based on numerical data among performance measurements is output and result-oriented measurement. It is a measurement model that takes into account the completion rate and error margins of projects within a specified time frame.

KPIs (Key Performance Indicator):

In this measurement model, the key performance indicators are called KPIs because the most key indicator ratios are used. The most important performance indicators for a company are sales targets, productivity and customer satisfaction.

  • Sales targets show the rate of achievement of the sales targets set by the business.
  • Productivity is measured by the amount of work completed by employees in a given period.
  • Customer satisfaction is measured by the degree of satisfaction measured by customer feedback and surveys.

These metrics provide the statistics that best summarize a company’s performance.

Participation and Continuity

One of the performance indicators of an employee is attendance rate and attendance. Attendance rate and attendance reflect the motivation and desire of the employee. An employee’s commitment to his/her job greatly affects his/her performance.

Creativity and Innovation:

Creativity and innovation are critical for businesses to gain competitive advantage and continuous improvement. Supporting employees’ creative and innovative thinking skills directly affects the long-term success of the organization.

For example;

  • An employee may propose a new product based on customer feedback or suggest a new feature for an existing product. This makes the product more attractive and competitive.
  • An engineer develops a new control mechanism to solve a common quality problem in the production process. This significantly reduces the amount of defective products.

Performance Evaluation Meetings:

Performance appraisal interviews are interviews or meetings held at regular intervals where employees evaluate themselves and their teammates, identify and discuss their development areas, achievements and future goals. These meetings held at regular intervals help to increase the success of the personnel and the company.

Businesses that evaluate employee performance with these and similar methods provide a clear increase in success by supporting them with improvements after the evaluations. The important thing is to be able to approach the measurements objectively and make improvements in this direction.

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