Measuring employee performance can be challenging, but there are a number of ways this can be done to make performance management straight forward and objective for employees and managers. We have detailed some examples below.
1. 36o degree feedback
Performance management is often based upon the views of the individual and their manager, but this can be widened to incorporate the views of others who experience their performance, for instance this could include colleagues, customers and subordinates. This approach is known as 360 degree feedback.
360 degree feedback can be useful in that it gives an overall view of the individual’s performance. A typical 360 degree process would involve guidelines about the scheme, software to administer the assessments and forms asking indviduals for assessments of different elements of performance using a fixed scale. Most of the time these performance assessments are based on behavioural competencies rather than on the technical elements of a role.
This type of assessment can be time consuming and typically involves up to 10 people, but they can be extremely worthwhile. The feedback can be used to give individuals an insight into their own performance and the effect of this on their colleagues and individuals they work with.
The downside to these processes is that the individual can feel exposed to criticism, particularly if pay is linked to performance. If they feel that they have been unfairly treated then this could damage relationships within the business however when managed correctly this shouldn’t be the case and often results in a comprehensive, fair and objective overview of an individual’s performance.
2. Measure employee performance with behavioural competencies
A competency is a skill or a behaviour that an individual needs to be able to demonstrate in order to perform their role effectively. Competencies are widely used for a number of reasons including, recruitment and selection, training and development, pay reviews and performance management.
Competencies are structured around the role requirements and the types of behaviours and attitudes that individuals are expected to show as part of their role within the organisation. These competencies usually make up what is often referred to as a competency framework. Once a competency framework has been drafted and adopted, individuals can then be assessed during performance management to determine to what degree they meet the competencies and which areas they need to develop in future.
3. Goals and targets in measuring employee performance
Often mangers will set employees targets and goals to meet, these can be daily, weekly or monthly and are usually in line with the requirements set out in the job description. The expectation is that the employee will meet or exceed their targets in order to perform effectively. It’s important that when setting goals or targets these are reasonable and achievable, if not, they will not effectively motivate the individual to reach them.
This can be a useful way to measure employee performance because it provides employees with a clear target which is objective and easily identifiable, this leaves less room for ambiguity. It’s important that individuals are aware of their targets and if they aren’t able to reach them, a conversation should be held about why this might be and if there are any obstacles to them hitting their targets. If they are consistently falling below the standard required then a formal performance management process would be instigated.
4. Measure the employee’s quality of work
Another way to measure employee performance is the quality of the output. This is essential because although an individual may be a fast worker, if their work is not of the required standard then this is not acceptable and would need to be addressed.
In some cases, for instance in engineering, it can be very clear if a piece of work is not to the required standard, this can result in additional costs to the business in addition to wastage, therefore it’s important to pick these issues up at an early stage.
If an employee’s work is consistently below the standard required then this would form part of a formal performance management process whereby a discussion is held with the employee regarding the issues in their work, they should then be provided with suitable training and a timeframe in which an improvement should be seen before further sanctions are issued.
5. Work efficiency and productivity
Conversely, if an employee’s work is always completed to a high standard but is not carried out in a timely way, then this can be equally difficult for businesses to manage. Looking at work efficiency is often used for example in a warehouse setting where individuals are required to pick a certain number of items within a certain timeframe. Where employees are carrying out work in timely manner, this is a useful objective criteria to manage performance.
Performance management can seem like a daunting prospect but when there are clear, measurable and objective criteria, this can make the process much easier, for both employees and managers. If you need support with performance management then please get in touch.
