The Three Key Performance Indicators You Must Track
Tracking the performance of employees is critical to a well-run business. High performance across the board indicates a happy, engaged workforce. On the other hand, low performance signals a deeper problem in the business that leadership must attend to.
But how is such performance measured? In a nutshell, leaders want to see that staff members are achieving predetermined goals, contributing to the team, and using critical thinking techniques to support the smooth running of business operations.
Hence, key performance indicators are used to tracking how well employees are doing at their job. While indicators can vary according to industry, job position, seniority etc, several metrics remain crucial for determining performance.
These three indicators listed below are the core ones that every HR manager should track, no matter the business.
Work Efficiency
Both employers and employees alike value efficiency as a key metric to track performance. Essentially, efficiency is the output of work produced for a given input.
Here is a simple efficiency calculation:
- Find out how many tasks have been finished.
- Measure the number of tasks that were finished over the course of a month.
- Measure the output in relation to the workplace average.
- Measure the output in relation to the industry average.
- Measure the employee’s input, i.e. the amount of hours they work.
- To find the efficiency figure, divide the output by the input.
This value can then be used to compare the efficiency of each employee across the business.
The ability to measure efficiency enables the identification of problem areas. This enables a firm to change how certain tasks are carried out or identify where certain departments are falling short.
However, measuring efficiency can complicated by the nature of work done, especially knowledge work. It is more or less impossible to measure the input and output for complex tasks that need deep thought, and thus would need other metrics to measure performance.
Quality of Work
Employees producing good quality work is crucial, as poor-quality output can result in dissatisfied customers and reputational damage.
The metrics used for measuring quality will depend on the work done, such as QC/QA for manufacturing or net promoter scores (NPS) for customer-facing positions. For other job functions, 360-degree feedback and manager feedback are also another way to capture a snapshot of the employee’s quality of work.
In any case, tracking work quality is important for ensuring that employee output isn’t just about quantity, it’s about quality as well.
Teamwork
Today’s complex problems more than ever require employees to operate as a team. For example, delivering a great customer experience is an effort that requires the whole organization to think as one towards this goal. It starts from the product, down to the point of sale, through to customer support for post-sales follow up if needed – all the while supported by marketing and other functions.
Furthermore, high teamwork indicates a high degree of engagement with the company and with the employee’s work. Consequently, it’s crucial that organizations measure teamwork as a key metric.
Teamwork is not a quantitative metric, but it can be measured using feedback tools. Just like work quality, 360-degree feedback and manager feedback can also be used to assess teamwork. It may be somewhat intangible, but of all qualitative metrics this is the one to measure.
Track the Right Metrics With BrioHR
Maintaining a high-performing team depends on tracking the right metrics. With BrioHR’s performance management module, you can design your own performance management process and collect 360-degree feedback.
BrioHR’s all-in-one, cloud-based solution automates repetitive tasks and empowers HR in a user-friendly interface. With 9 powerful modules, BrioHR’s software covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
Tracking the performance of employees is critical to a well-run business. High performance across the board indicates a happy, engaged workforce. On the other hand, low performance signals a deeper problem in the business that leadership must attend to.
But how is such performance measured? In a nutshell, leaders want to see that staff members are achieving predetermined goals, contributing to the team, and using critical thinking techniques to support the smooth running of business operations.
Hence, key performance indicators are used to tracking how well employees are doing at their job. While indicators can vary according to industry, job position, seniority etc, several metrics remain crucial for determining performance.
These three indicators listed below are the core ones that every HR manager should track, no matter the business.
Work Efficiency
Both employers and employees alike value efficiency as a key metric to track performance. Essentially, efficiency is the output of work produced for a given input.
Here is a simple efficiency calculation:
- Find out how many tasks have been finished.
- Measure the number of tasks that were finished over the course of a month.
- Measure the output in relation to the workplace average.
- Measure the output in relation to the industry average.
- Measure the employee’s input, i.e. the amount of hours they work.
- To find the efficiency figure, divide the output by the input.
This value can then be used to compare the efficiency of each employee across the business.
The ability to measure efficiency enables the identification of problem areas. This enables a firm to change how certain tasks are carried out or identify where certain departments are falling short.
However, measuring efficiency can complicated by the nature of work done, especially knowledge work. It is more or less impossible to measure the input and output for complex tasks that need deep thought, and thus would need other metrics to measure performance.
Quality of Work
Employees producing good quality work is crucial, as poor-quality output can result in dissatisfied customers and reputational damage.
The metrics used for measuring quality will depend on the work done, such as QC/QA for manufacturing or net promoter scores (NPS) for customer-facing positions. For other job functions, 360-degree feedback and manager feedback are also another way to capture a snapshot of the employee’s quality of work.
In any case, tracking work quality is important for ensuring that employee output isn’t just about quantity, it’s about quality as well.
Teamwork
Today’s complex problems more than ever require employees to operate as a team. For example, delivering a great customer experience is an effort that requires the whole organization to think as one towards this goal. It starts from the product, down to the point of sale, through to customer support for post-sales follow up if needed – all the while supported by marketing and other functions.
Furthermore, high teamwork indicates a high degree of engagement with the company and with the employee’s work. Consequently, it’s crucial that organizations measure teamwork as a key metric.
Teamwork is not a quantitative metric, but it can be measured using feedback tools. Just like work quality, 360-degree feedback and manager feedback can also be used to assess teamwork. It may be somewhat intangible, but of all qualitative metrics this is the one to measure.
Track the Right Metrics With BrioHR
Maintaining a high-performing team depends on tracking the right metrics. With BrioHR’s performance management module, you can design your own performance management process and collect 360-degree feedback.
BrioHR’s all-in-one, cloud-based solution automates repetitive tasks and empowers HR in a user-friendly interface. With 9 powerful modules, BrioHR’s software covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.
This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.
