About how to frame employee performance metrics for your company. What are the ways to measure your employee’s performance and how to increase their productivity? ## **1. BENEFITS OF EMPLOYEE PERFORMANCE METRICS** With the help of employee performance metrics, you can: - Measure of qualitative/quantitative - Give constructive feedback - Track company performance - Increases employee efficiency - Measure the strong/weak link - Measure of appreciate compensation - Increases workplace productivity - Evaluate workload - Creativity & accuracy evaluation ## **2. TYPES OF EMPLOYEE PERFORMANCE METRICS** - Work quality metrics - Work quantity metrics - Efficiency metrics - Behaviour metrics - Skill & will performance metrics - Productivity metrics There are many ways in which you can measure how your employee is working. You should make a process to measure an employee’s work like: #### **1. SELF-EVALUATION** - Ask your employees to evaluate their performance by filling up a form, highlighting their critical areas. - You should generate conversations for this process as it will be very helpful for the whole department. > Without proper self-evaluation, failure is inevitable._ Don’t lower your expectations to meet your performance; raise _your performance to meet your expectations._ #### **2. CHECKLIST** Before beginning work, a checklist should be prepared to take note of everything that is supposed to be there. **For example:** If a video is to be shot, the camera person should have a checklist of points like: - Camera focus - Chair positioning - Background - Water bottle requirement Similarly, for an employee, create a checklist and see if they are qualifying all the requirements and check if they are repeating the same mistakes or are not able to grow. _Under conditions of complexity,_ _not only are checklists a help,_ _but they are required for success._ #### **3. SUBJECTIVE APPRAISAL OF POTENTIAL & PERFORMANCE** Performance means what good they’ve done before and potential means how good they can do in future. You can measure it using points like: - If the potential is high and performance is low, you can coach them. - If the potential is low and performance is high, you can give them development. - If the potential and performance are good, they are Rockstar. - If the potential and performance are low, it’s questionable. #### **4. NET PROMOTER SCORE** When your customers give feedback about your employees, this type of rating is called the net promoter score. You can ask your customers to fill a feedback form regarding their relationship manager or service agent or ask them to rate from 1 to 10. If the rating is between 9 and 10, your employee is good but if the rating is in-between 1 to 6, you need to question their performance and take measures to improve their quality of work. #### **5. 360-DEGREE FEEDBACK** It is the most popular among big corporates. In this type of metric, everyone around an employee gives feedback about them, including: - Manager - Junior - Outside customer - Department heads - Stakeholders When all these people give their feedback about one person in the rating of 1 to 10, you get to know more about the employee. **For example:** If you want feedback for a Sales Manager, then other sales manager, his general manager, his sales executives, customers, and suppliers will give their input and you’ll know if he’s the right fit for the position or not. **An ounce of performance is worth pounds of promise** If you want performance, then you’ll have to decide which metrics to focus on. Not every metric will be useful for you, you can only know that when you’ll read these metrics again and again. #### **6. PRODUCT DEFECTS** If you’re into manufacturing and production, something whose outcomes is in product forms, then you can calculate the number of defects. **For example:** If a video editor is editing a video, you can calculate their number of corrections/defects and compare it with other employees who are giving fewer corrections for the same videos. This can be one of the ways to calculate your employee’s performance. #### **7. NUMBER OF ERRORS** In a software testing programme, a single error can shut the whole programme down and can ruin the whole project and business. >**When you hide a fact, you borrow a defect** >**A fool doesn’t see any defect in himself;** >**However, he sees many defects in others** #### **8. 180-DEGREE FEEDBACK** 180-degree represents a straight line, i.e., you need to take feedback of your employee from the uppermost positioned person and the lowermost positioned person. **For example:** For a sales manager, you can take feedback from his general manager and junior/sales executive. This is an easy yet effective way and can be started right away by: - Forms - Templates - Write down questions You can give these forms to an employee’s boss and subordinates and you’ll get his ratings If the feedback is good, the employee: - Feels motivated - Feels recognized - Increases retention - Feels good But if the feedback is bad, you can start guiding the employee or personally monitor them. Not all employees will be up to the mark, but you can tell them about their mistakes once, twice, or thrice. If the performance still doesn’t improve, it’s not a good sign. It allows employees to discuss problems they’ve been facing and provide feedback on the manager’s performance as well. #### **9. FORCED RANKING** It is used when you need employees’ ratings at the end of a year or a quarter wherein a manager himself ranks the employees. If you don’t want long processes, then this is the shortest process but not that effective because it is forced. **For example:** Managers can mark their employees’ ratings as per their opinion. The employees in the top quartile can get a raise in salary or designation hike, while employees in the bottom quartile can lose their jobs. #### **10. GRAPHICAL RATING SCALE** You can give graphical ratings to employees based on specific behaviour like: - Responsible - Self-motivated - Passionate - Job understanding - Reliable - Collaborative - Punctual - Displays values - Culturally fit - Accepts feedback - Courteous - Demonstrates positive culture - Loyal - Ambitious - Confident - Committed - Enthusiastic - Dedicated - Proactive - Presentable - Self-managed - Works on timelines - Inquisitive - Role model - Detail-oriented You can choose which behaviour you need in your organisation and can rate your employees accordingly. You can make a graph of the qualities needed and can measure employees on that basis. If not seem fit in any category, the employee can be coached/trained in the same category. Measurement is very important if you want to grow your business. _Keep your behaviour positive because your behaviour becomes your habit,_ _Your beliefs don’t make you a better person; your behaviour does._ _Your behaviour is your identity, and your character is your certificate._ #### **11. NUMBER OF SALES** - No. of potential clients contacted - No. of calls made – if you have a benchmark of 50 calls, - 40 calls = 80% of target achieved - 60 calls = over achieved - 25 calls = 50% achieved – requires mentoring - No. of clients & company visited - No. of units produced - No. of active leads - No. of first call resolutions - Average handling time - Quality of the call You can check these ratings on a daily, weekly, or fortnightly basis. If you have CRM tools, you can generate daily ratings, feedbacks, and report. You can also keep a check on consistent improvement, budgets, and absenteeism. If you are a big organisation, you can make an assessment centre where professional agencies come and assess your employees. You can also opt for a peer assessment wherein the manager assesses/evaluates another manager. **For example:** If you have 20 managers in your organisation, then one manager will rate the other 19 managers. #### **12. ADHERENCE TO COMPANY POLICIES** Do you have employees to violate company policies? In this situation, you should set company disciplines and formulate ZTP (Zero Tolerance Policy) about things and behaviour that you will never tolerate. **For example:** Misbehaviour with a woman is ZTP and the concerned person can be thrown out of the organisation or strict actions will be taken against him. #### **13. COST ACCOUNTING METHOD** - You can also calculate the P&L (Profit & Loss) due to an employee. - This will also help you in calculating the cost of retaining an employee. - It specifies if the employee is a contributor or a consumer of the company. - You can calculate the monetary benefits from the performance of the employee. **For example:** - Business has implemented the Cost Accounting Method in their organisation. - Their functional leaders receive P&L for the members of their respective departments. - If the department consumes Rs. 10 crores in a year, they have to calculate how much they have earned at the end of the year and the specific percentage of the profit earned will be given to them. You must have chartered accountants/MBA (Finance) as executive assistants who can make: - MIS - Reports - Cost sheet of every department/employee - Cost-benefit analysis/P&L This will help you in analysing if your employee is a contributor or a detractor or if he’s giving business to the organisation or just taking benefits but giving nothing in return. All these performance metrics are not to determine who’s the winner and the loser of the organisation, but they help you in determining how to improve. It’s a two-way process of communication to reduce barriers between you and your employees. To get better results from your employees and grow as an organisation, keep these points in mind: - You should review your employees to motivate them. - You must document their good/bad performance. - Discuss the documents with them to inspire and encourage them. - Be future-focused. - Be an active listener. - Ask solution-oriented questions. - Take feedback from them for what they think of you as a boss. - Ask for improvement plans for next quarter. - Ask for goals and plans for the next quarter. - Don’t do this annually, do it monthly or quarterly. - There should be two-way communication. - Review their performances so that they can grow. - Give them future development plans rather than sticking to the mistakes in the past. - Try maintaining transparency. - Always have a collaborative approach.