Employee performance: how to measure and improve

Employee performance: how to measure and improve

employee engagement

The efficiency of the company’s employees directly affects the success of the company and its development. Everyone understands this. Difficulties begin where it is required not just to abstractly determine how good everything is, but to express efficiency in concrete values. 360 appraisal system is a structure that can allow companies to measure the performance of their workers and suggest appraisal for the compatible workers. 

But determining the level of performance is half the battle. It is equally important to understand how to improve what is. Many executives still prefer the whip method, but strict discipline and penalties will not improve productivity. We will tell you about how to find out the effectiveness of employees and how to increase it in our article.

Why you need to track employee performance

It is important for any employer to correctly spend the salary fund and wants to be sure that each employee is worth the money that the company spends on him.

Evaluating the performance of employees is necessary for:

  • Analysis of the management system, the optimal distribution of powers and tasks between team members.
  • Understanding whether this or that volume of tasks is sufficient for a particular employee, whether he copes with them.
  • Determination of how necessary a particular position is for the company; whether the person who occupies it makes a significant personal contribution to the success of the company.
  • Establishing the correspondence of wages to the performed scope of duties.
  • Finding motivation methods that work in a given team.
  • A forecast of the employee’s prospects on the basis of which a decision will be made to improve his qualifications, for example. Is it advisable to spend money on training this employee, is it in the interests of the business?

Among modern managers, the method of introducing KPIs for personnel is quite popular – key indicators of labor efficiency.

Why you need to track employee performance

How does it usually look like in life? The leader sets a number of goals and objectives for subordinates. Someone copes with them, someone does not. In accordance with the results, employees receive a reward: a bonus or bonus – those who completed the plan, and verbal gratitude for the work (or at least an attempt to complete it) – all the rest. Such a system is expected to provide fair wages.

Evaluation of the performance of employees is most of all concerned not with themselves, but with the employer, because it is he who will have to pay for their work. For example, a salesperson’s income is mostly made up of a percentage of closed deals, which forces him to be proactive and persistent. But for an office worker, such a scheme is unacceptable: he needs a stable salary (the size of which correlates with the effectiveness of efforts). It’s even more difficult for creative workers like software developers and designers. Assessment of the productivity of their work by means of KPIs is only a part of Russian practice. Usually, the size of the salary depends solely on the subjective assessment of the head of the department or the head of the company, although not all managers admit this – they usually hide it.

Criteria for evaluating employee performance

A number of practical criteria have been developed to measure the productivity of personnel and determine how a particular person fits his position. Most modern professions have already developed common quality standards shared by all. Quantitative parameters are always individual.

The current situation in the country and in the world is gaining more and more momentum every day.

Today every entrepreneur asks himself the question: “What will happen to my business now?”

If you succumb to general panic and “freeze” the company’s activities, then it will not lead to anything good. If you see that a crisis is inevitable and the company’s income is already beginning to decline, do not suspend your activities. Do not under any circumstances reduce advertising costs or stop promoting (unless, of course, you were closed due to a government decree).

Direct your maximum efforts and attention to promoting your company and increasing the flow of new customers.

In order for you to have an understanding of how to behave during a crisis, I will share with you useful tools that helped us not only overcome the crisis, but also come out of it as winners.

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