Employee Performance Monitoring: 6 Effective Methods

Employee performance is the foundation of any business that wants to stay competitive. High-performing employees boost profits and customer satisfaction, creating a positive company image.

Monitoring employee performance is essential for understanding individual contributions, identifying areas for improvement, and rewarding top performers. Timely measures to support productivity are the key to helping each employee and the company reveal their true potential. However, performance is a broad term; its meaning may vary depending on the organization, the field, and position. What exactly should a manager assess, and what is the best way to do it? We will answer these questions in this article.

In the traditional understanding, employee performance is the quality, efficiency, and quantity of produced work.

To assess the quality of work, you should check if the employee's work meets expectations and industry/company standards. See if the employee has met their objectives and did their best while working on the task. Depending on the field and position, qualitative metrics can be:

• Customer satisfaction: how content the customers are with the employee's work; how well and quickly the employee handles their requests; whether the employee follows the code of conduct, etc.

• Teamwork and collaboration: how well the employee works with others, contributes to team goals, and supports colleagues.

• Initiative: whether the employee is capable of taking on new tasks, proposing new ideas, and solving problems independently.

• Adaptability: how flexible the employee is in handling changing situations and new challenges.

• Communication: how effectively the employee can communicate with colleagues, clients, and management.

Quantity refers to the employee's output - the number of items produced. It may seem that quantity can be measured only in manufacturing, but in fact, it may refer to any item, including non-material: sales generated, projects completed, calls made, etc.

Efficiency measures how quickly and effectively tasks are completed, such as time per unit produced or customer service response time. It refers to meeting deadlines, completing tasks on time without sacrificing quality, and using the most efficient methods to achieve work goals. Efficiency may be measured in:

• Items produced/tasks completed per hour/day/month;

• Machine downtime - the time equipment is not operational due to maintenance, breakdowns, or other issues;

• Material consumption and waste - the amount of materials or supplies that are used or discarded;

• Cycle time - the time it takes to complete a process from start to finish;

• Defects per unit - the number of errors or defects found in a unit of output.

Many modern organizations prioritize employee well-being and engagement along with traditional metrics. This approach is reasonable. Disengaged employees miss work more often, are unproductive, and negatively affect their coworkers and customers. It costs companies about {var} or $450-550 billion yearly in the USA alone. On the contrary, highly engaged teams show 23% greater profitability.

When measuring engagement, managers may look at:

• Overall job satisfaction;

• Employee's satisfaction with their work-life balance;

• Employee's perception of growth and career opportunities within the company;

• Satisfaction with company culture;

• Voluntary/involuntary turnover;

• Absenteeism.

In addition to quantity, quality, efficiency, and engagement, it may be worth looking at the behavioral metrics that may also affect performance:

• Work ethic: the employee's dedication, commitment, and professionalism.

• Attendance and punctuality: the employee's reliability and adherence to work schedules.

• Compliance: the employee's adherence to company policies, procedures, and regulations.

Performance review is a systematic process of assessing employee performance against predetermined goals and expectations. It is a great method for discussing achievements, revealing areas for improvement, and setting new goals.

Performance reviews require extensive preparations. Start by setting clear expectations: outline responsibilities and performance expectations and establish clear and measurable goals. Monitor employee performance over a certain period and gather quantitative and qualitative metrics. Feedback from managers, colleagues, and customers will be a valuable contribution to the overall performance picture.

During the review, try to create a comfortable and open environment for discussion. Offer both positive reinforcement and constructive feedback on areas for improvement. Be specific - provide examples supporting your feedback. Encourage the employee to share their perspective and concerns. At the end of the review, create a plan to address performance issues and areas for improvement.

Performance reviews are effective if they are conducted regularly. However, {var} arrange them only once or twice a year, which is hardly sufficient.

80% of employees would prefer to receive regular feedback instead of annual reviews. Individual check-ins are a great way to fill the void between performance reviews and stay up-to-date with the workflow. While performance reviews are mainly focused on past performance and cover larger periods, check-ins serve to maintain regular communication and ensure that everything is on track. They typically occur more frequently, often weekly or bi-weekly, and are more informal. Check-ins are focused on specific projects, addressing day-to-day tasks and providing timely support.

Employee monitoring software is a valuable tool for monitoring performance. It collects extensive data on the employee's computer usage, allowing to see where the work time goes and how the company resources are used, to ensure compliance with the company's policies and strengthen security.

Employee monitoring software collects and analyzes the activity data and presents it as graphic charts of productivity trends, attendance, and software and Internet usage. Advanced tools provide extra features, such as live streaming of employees' screens, letting you see what they are working on. {var}, the leading software to monitor employee performance, has recently introduced AI Scoring. The AI-based algorithm analyzes the employee's activity, compares it to industry standards, calculates an individual productivity score, and provides recommendations.

Employee monitoring software saves managers a lot of time and effort. Instead of manually reviewing performance and attendance reports, they can get statistics at the click of the mouse. Thanks to their all-encompassing functionality and deep analysis, such programs can be used as a way to monitor employee performance alone or in combination with other methods. For example, the gathered information can be used for annual performance reviews. Employee monitoring software can be used to collect qualitative and efficiency metrics and to assess employee engagement.

Implementing employee monitoring software requires transparency and respect for privacy. Use it to measure productivity and identify areas for improvement. Collect only the data that is strictly necessary and ensure compliance with applicable laws and regulations. It is recommended that the employees be notified about monitoring and explained the purposes of monitoring to avoid creating unnecessary pressure and trust issues.

Task management software is another valuable tool for tracking performance. While employee monitoring programs track overall employee activity, idle/active time, and distractions, task managers focus on specific projects and tasks. These systems can monitor employee tasks progress, allowing you to identify potential issues early and provide timely support. You will see how long it takes an employee to finish the task, track employee progress, and hold them accountable for meeting deadlines. You can watch each employee's workload, redistribute it evenly across the team, and reveal top performers and struggling employees.

Task management software works well for collecting quantitative, qualitative, and efficiency performance metrics. To get the most out of these tools, set clear achievable goals for each employee, track progress, and provide timely feedback.

Peer reviews are obtaining feedback on an employee's performance from their colleagues. Such reviews complement feedback from managers and subordinates and offer a different valuable perspective. Besides, employees may feel more engaged and valued when their peers are involved in evaluating their performance.

To encourage honest feedback, ensure the reviews are anonymous and focused on specific skills and behaviors relevant to the employee's role.

Involving employees in evaluating their performance is a valuable method of monitoring. It promotes accountability, improves engagement, and shows a unique perspective. Employees get a chance to express their thoughts about their performance, tasks, colleagues, potential concerns, and suggestions.

Self-monitoring can help employees develop a better understanding of their strengths and weaknesses. It can even boost productivity: workers are more likely to achieve their goals when they actively track their progress and adjust as needed.

Tailoring your employee performance monitoring strategy to your company's specific needs is crucial for achieving optimal results. Various methods are available, yet the most effective approach often involves a combination of techniques.

By leveraging the power of regular performance reviews, individual check-ins, employee monitoring software, task management tools, peer reviews, and self-monitoring, you can create a comprehensive system that supports employee development, fosters a positive work environment, and drives overall business success.