Monitoring Employee Performance: Proven Strategies to Boost Productivity and Engagement

Monitoring employees has become a common practice for modern businesses. According to Resume Builder , Resume Builder, 79% of in-office companies track employee attendance, and 37% of remote organizations watch employees for 4+ hours per day using video surveillance. Forbes , reports that 43% of employees have their Internet activity monitored by their employers; 73% of managers, keep messages, emails, and calls for future performance evaluations.

Employee monitoring brings significant benefits, from the most obvious productivity boost to improving communication. Monitoring employee performance reveals areas where workers may struggle, uncovers individual strengths and weaknesses, and facilitates feedback and data-driven decisions. But how to monitor employee performance to get the most out of it?

Of course, the intrusive nature of employee monitoring is a matter of debate, and rightly so. Employees worldwide should have the right to give consent to what's being monitored and companies should adhere to this expectation, while also ensuring that the employee morale isn't compromised in the process — precisely why

In this article, we will explore key components of efficient employee performance monitoring, best practices, supervising roles, and tools.

Before we delve into how, we should answer the equally important question: who should monitor employee performance? The head of the company would be the first obvious answer, but in reality, it is not so straightforward. While small startup owners can manage all team members and processes, heads of medium and large businesses cannot track performance alone (unless they are supercomputers, of course). In this case, the responsibility of monitoring employee performance falls on several roles within an organization, depending on the size and structure of the company.

Usually, direct supervisors and managers are responsible for daily performance tracking. Managers monitor task completion, productivity, and overall work quality, ensuring alignment with the company's goals.

The Human Resources Department is an obvious choice for tracking long-term employee performance. HRs can track productivity through formal performance reviews, setting KPIs, and managing overall employee development. HR ensures that performance evaluations are fair, transparent, and help guide professional growth.

Department heads can see the broad picture and, therefore, are ideal for tracking the entire team's performance rather than individual employees. Their task is to ensure the department's goals are met and to support and encourage underperforming employees.

Finally, involving employees in monitoring their progress and results is a highly effective practice. Self-assessments and personal performance tracking allow employees to take ownership of their development and productivity.

In a nutshell, splitting monitoring employee performance between supervisors, HRs, and department heads and encouraging employee self-monitoring can reduce the workload associated with monitoring and create a balanced approach that promotes accountability, growth, and engagement.

According to Folks RH , managers spend about 210 hours, or slightly more than 26 work days, on performance management. Despite such high amounts of time, 90% of productivity appraisals are ineffective. Such inefficiency impairs the company's progress and strongly affects retention: 24% of employees are ready to quit because of inefficient performance appraisals and lack of recognition. So, how do you monitor employee performance with the maximum benefit to the company? Here are the key strategies.

Folks RH reports that 65% of employees want more clarity in their work goals, tasks, and duties. You cannot expect high productivity from an employee who does not know their scope of responsibilities or what is expected of them. Clear goals help employees focus on tasks that align with organizational objectives. Besides, involving employees in goal-setting makes your workforce 3.6 times more likely to be motivated.

When employees are unsure about their responsibilities, they may hesitate, second-guess their actions, or constantly seek clarification and approval. Setting precise expectations eliminates ambiguity, saves time on back-and-forth communication, encourages autonomy, and boosts confidence.

Be specific and direct when communicating duties, goals, and expectations. Provide detailed explanations of desired outcomes and clearly outline the responsibilities and tasks associated with each role.

The SMART goals approach is an effective method to check if the set goals are clear, achievable, and bring value to the company. SMART is an acronym that stands for:

• Specific: the goal should clearly outline what needs to be accomplished, the required steps, and responsible individuals;

• Measurable: you must have criteria for gauging progress and success;

• Achievable: the goal should be realistic and doable, not too easy or overly ambitious;

• Relevant: the goal should be aligned with broader business objectives;

• Time-bound: the goal should have a deadline or a defined timeframe for completion.

SMART goals provide a clear roadmap for employees and managers, ensuring everyone knows what success looks like and how to achieve it. They also increase accountability and make it easier to measure progress and results.

One of the steps in the SMART goals approach is to create a set of clear and measurable performance metrics to which you would refer while monitoring the performance of an employee. Key metrics usually include:

• task completion

• meeting deadlines

• work quality

• efficiency and productivity: time spent vs. the produced output

• attendance

Clear and measurable performance metrics facilitate the monitoring of employee productivity and help avoid subjectivity in the evaluation process.

Monitoring employee productivity can be done through a combination of tools, metrics, and techniques that provide insights into how effectively employees are using their time and resources. Depending on your set goals and chosen metrics, you can keep track of employee performance using time-tracking, task management, and employee monitoring software.

Project management platforms like Trello, Asana, and Jira allow assigning tasks, allocating workload, setting deadlines, and tracking task completion and project progress in real time. Project management tools are a convenient way to see the bigger picture of the project and how productive team members are over time.

Time-tracking apps, such as Toggl, Time Doctor, and Hubstaff, are designed to monitor how much time an employee spends on each task. Depending on the app's functionality, time trackers can record how much time a person spends on a task or a project, how long they use a specific application or website, track absences, etc. Based on this information, the program can calculate payrolls, project costs, and budgets, and help identify high performers and struggling employees.

Employee monitoring solutions, such as CleverControl , , ActivTrak, and Insightful, monitor employee productivity and how efficiently a person allocates their work time. These programs track an employee's activity on their work computer, for example, used applications and websites, search queries, idle and active time, start and the end of work, and much more. The solution then analyzes the collected data and presents it as statistics and logs valuable for performance evaluation.

Whichever solution you choose, implement it openly and explain its purpose to the staff to avoid creating unnecessary stress and pressure. Study the state and local laws to ensure that your monitoring policies align with the privacy regulations.

The article by Folks RH reveals that 69% of businesses conduct only annual or bi-annual performance evaluations. 19% of employees receive their feedback only once a year. At the same time, 80% of employees prefer regular feedback over annual performance reviews. Yearly performance appraisals frequently become a source of stress for employees, as they do not know what to expect. On the contrary, regular feedback, one-on-one meetings, peer reviews, and other feedback methods help employees reflect on their work, identify areas for improvement, and receive valuable assessments from colleagues and managers.

Conduct formal performance reviews at least twice a year. These reviews should focus on specific, actionable feedback and development opportunities rather than just criticizing past performance. Regular, constructive feedback can improve productivity, reduce turnover by as much as 14,9%, and increase employee engagement: 65% of employees are engaged when companies use continuous feedback and other modern practices.

Engagement is vital for employee productivity: engaged employees are more likely to be productive, motivated, and committed to their work. According to Gallup , businesses with a high-engagement culture perform better: they enjoy higher customer engagement, 17% higher productivity, lower turnover, fewer accidents, and 21% higher profitability. If your staff is underperforming, it is worth checking their engagement level - it is likely to be low. But how do we monitor employee engagement? Here are a few efficient methods.

Employee Surveys and Pulse Checks

Regular surveys (such as employee engagement surveys or pulse surveys) can gather feedback on how employees feel about their roles, management, and the overall work environment.

Feedback Tools and Platforms

Use tools like Officevibe or CultureAmp that allow employees to provide feedback regularly. These tools can track engagement metrics and help managers spot trends indicating disengagement.

Tracking Participation in Meetings and Initiatives

Monitoring how often employees actively participate in meetings, training sessions, or company initiatives can show their engagement levels. Engaged employees are more likely to contribute ideas and collaborate.

Monitoring Work Habits and Productivity

Employee monitoring and project management tools can reveal engagement levels. Disengaged employees often show lower productivity, more absences, and less participation in collaborative efforts.

One-on-One Meetings

Regular one-on-one meetings allow managers to check in on employee well-being, career aspirations, and challenges they may face. Personalized attention strengthens relationships and helps managers gauge engagement in real time.

Monitoring employee performance is a critical component of successful modern business operations. It provides valuable insights that help boost productivity, improve communication, and ensure employees' work is aligned with company goals.

Effective employee monitoring is more than just tracking activity. It is about creating a roadmap to success with clear goals, measurable performance metrics, tools and methods to track productivity, and actionable feedback focusing on improvement rather than criticizing past underperformance. These practices, when done transparently and with the right intentions, foster accountability, engagement, and growth, ultimately leading to improved individual and organizational performance.