Why Use Metrics to Measure Employee Performance?
Measuring employee performance by establishing metrics and setting goals does not need to be cumbersome. In fact, it makes the feedback process a lot more objective and conversations easier as the focus is on performance and results rather than subjective commentary. As well, metrics are often the result of team activity rather than strictly individual performance.
As a leader, metrics help us to:
- Coach employees towards superior performance
- Increase accountability and responsibility
- Avoid useless feedback
What makes a good measurement system?
- Aligning it with the business strategy
- Creating it in collaboration with the team
- Having it reflect the interests of stakeholders
- Includes targets that challenge but are achievable
- Motivates those high achievers that will be recognized for superior performance
- Communicates results and is the focus of regular meetings.
- Promotes continuous improvement.
Peter Drucker said it best:
“If you can’t measure it, you can’t improve it”
His view was that if you weren’t measuring the business, you couldn’t possibly set targets and make changes to improve or grow it.
So what does that mean for HR leaders?
HR leaders are no different than any other leader in the organization. You need to work with your teams, establish key metrics and set targets for improvement. Only then will you truly understand what is happening in the organization and be able to justify and implement improvements.
