12 Employee’s performance metrics every manager needs to track


Employees are the key asset of an organization. Measuring their performance using employee performance metrics proves beneficial for both employees and the organization. It is, however, essential to use employee performance metrics in the right manner to get accurate results.

Here are 12 main employee performance metrics used by organizations.

Management by objectives

As per this employee performance metric, management attempts to improve employee performance by using software by Objectives. Under this model, organizational goals are broken down into individual employee goals with each goal given certain points. These points help in measuring the improvement or downfall in performance.

Performance Appraisal

A bi-annual or annual performance appraisal is quite commonly used as an employee performance metric to measure the performance of employees. A combination of various qualitative and quantitative performance indicators is used in performance appraisal.

Faulty Products

Manufacturing companies in most cases measure product defects as an employee performance metric. The main motive in such companies is to keep the product quality high and defects as low as possible.

Net promoter score

A net promoter score acts as a rating for employee performance. Rated between 1-10, a score close to 10 is an indicator of a good performance by the employee.

A 360-degree feedback

360-degree feedback is a comprehensive employee performance metric that measures an employee’s performance. This tool incorporates the feedback of employee’s peers, managers, subordinates, and customers on several aspects to get an overall view on an employee’s performance.

Forced ranking

Forced Ranking is used to measure an employee’s performance relative to that of other employees. The manager is asked to rate the employees in descending order of their performance, with an aim to improve the performance of lower-ranked employees.

180-degree feedback

The 180-degree-feedback tool is an abridged version of the 360-degree feedback. In the 180 degrees feedback, only the manager and peers of an employee are asked to give feedback about the performance of an employee. This employee performance metric is useful in non-customer facing job profiles.

Sales Completed

This tool is quite simple to be used as an employee performance metric. Through this tool, the performance of an employee is measured based on sales completed. This tool, however, does not apply to all industries.

Quantity produced

Most traditional industries use the number of units produced by an employee as a performance metric. The tool works quite well in the case of simple manufacturing units producing uniform goods.

Time management

The time spent by an employee in handling a single customer is quite often used as a tool for measuring employee performance. This tool is easily applicable in a call center where the average time taken to resolve a customer query is noted for evaluation and comparison.

Overtime per Employee

A high overtime per employee rate indicates a highly motivated employee with high performance. However, along with the same, it is suggested to calculate time utilized for the actual outcome vs. estimated time utilized for the same. That metric would be much more accurate as compared to calculating simply overtime hours worked by employees.

Absenteeism Rate

The absenteeism rate is closely related to the performance of an employee. An employee who is motivated and happy takes fewer days off. A high absenteeism rate is a clear indicator of low performance and productivity.

It is generally found that a combination of tools works best for a true and accurate employee performance measurement as most of the tools are not sufficient when used alone.

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