How to Track Employee Performance: An Expert HR Guide

Employee performance tracking is an important activity for both employees and organisations. If planned and executed properly, performance tracking provides clear and measurable targets, ties individual contributions to the company’s overall goals, acts as an employee engagement and motivation tool, and brings about a sense of discipline in the organisation. However, if not managed properly, employee performance tracking can be a messy and chaotic affair that causes confusion, resentment, and avoidable stress all round.

In this guide, we will tell you how to track employee performance at your organisation in an optimal way.

What are the employee performance metrics that are usually tracked?

Some of the main measures of employee performance revolve around the quality of work, effectiveness (how impactfully the goals are achieved), efficiency (how the job is accomplished with minimum expenditure of time and effort), output quality, and involvement (active participation).  Measured over time, these metrics track the employee’s growth and progress and highlight areas where they may need support, training, or assistance to upgrade themselves.

Why does employee performance tracking matter?

Employee performance measurement is vital to businesses because it helps expand the business, products, and services by driving stewardship, improving communication, keeping a check on programmes and initiatives, ensuring value is derived from cost investments, and by enhancing employees’ skills and competencies.

However, performance tracking is not a one-sided process where the organisation assigns targets, and the employees slog away to achieve them at whatever cost. It is also a valuable tool for increasing employee engagement and loyalty.

If handled right, your performance management system can motivate your people to deliver higher performance standards, both quality and quantity wise, and improve customer delight.

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How to get the best out of your employee performance tracking programme

1. Let employees know what is expected of them at the beginning of the year

Employees must have clarity on the organisation’s expectations from them and what success looks like for their job role. HR metrics thus serve as a guiding light for how the employees must invest their time and direct their energies to arrive at the defined goals.

2. Make sure there are regular check-ins with employees

Regular check-ins mark the employee’s progress on their roadmap. To the organisation, check-ins provide an opportunity to monitor employees’ performance and provide timely feedback while holding them accountable for their growth milestones.

3. Provide timely and appropriate rewards and recognition

From the employee’s perspective, the main draw of any performance tracking system is the reward at the end of the process. So, make sure that the rewards – promotion, monetary awards, global assignments, or others – are aligned with what your employees’ value, and make sure that the reward/recognition is delivered in a timely manner.

4. Leverage technology for transparency and success

Technology tools for performance management are highly recommended for HR leaders. Such tools not only improve the transparency and efficiency of the process, but also provide dashboards and reporting support to present the performance data in most meaningful ways to the relevant stakeholders, including employees. Make sure that the performance management tool is scalable and has employee-friendly features like an engaging user interface, mobile responsiveness, support help desks, and integration with other HR platforms used by the employees.

5. Collect 360-degree feedback

Collecting 360-degree feedback from the employee’s colleagues, subordinates, customers, and their supervisors eliminates biases and ensures that the person’s true contribution is visible. The 360-degree feedback should begin with a self-assessment by the employee and be completed with a peer review, reviews by juniors, and feedback from their immediate bosses and the company leadership.

Also read: How to Give Feedback to Employees for Triggering Change

6. Recognise good performers all year round

Most organisations link performance with bonuses or annual increments. But it’s also important to recognise good performance through the year. Recognise your top performers at annual events, in monthly newsletters, and on other platforms. This creates a sense of pride and motivates employees to give their best.

7. Integrate employee well-being metrics into your performance management system

As organisations move to hybrid modes of working, HR leaders must also integrate employee well-being with SMART (specific, measurable, achievable, and relevant goals) goals. Flexible work hours, sponsored hobby classes, motivational workshops, paid mental health vacation, etc. are some well-being benefits that can be integrated with SMART goals. After all, employees value organisations that take care of them.

Also read: Tips for Implementing Your Corporate Wellbeing Strategy

8. Encourage employee participation

You can boost employee participation in performance management initiatives in various ways. These include team-building exercises, creating platforms and avenues for regular two-way communication between employees and leaders, gathering anonymous feedback at regular intervals, creating problem-solving cohorts related to employee issues, giving employees a wide range of well-being benefits, and providing upskilling and cross-skilling engagements and executive education programmes to get them invested in their own performance.

Increased employee participation guarantees that your employees will not only make conscious efforts to be involved, but will also achieve their metrics effortlessly and outshine their own standards. Having a systematic performance management process creates a growth path for your firm’s high performers to become tomorrow’s leaders and also motivates employees to take ownership of their career growth path within the organisation.

Check out this article Performance Anxiety at Work: Meaning, Causes and Treatments

Are you an HR or business head, an entrepreneur, or a team leader? If the well-being of your team is a priority, Manah can be your go-to partner. Do check out our services:

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