How Measuring and Managing Employee Performance Drives Business Growth

Ongoing communication with staff eliminates confusion, boosts performance, and narrows everyone’s focus to company priorities. That, in turn, achieves improved results and drives profits. Measuring and managing employee performance is the core of performance management, and it is key to growing your business.


Measure and Manage Employee Performance

Measuring employee job performance to continually improve skills and outcomes is a fundamental part of the performance management review process. Common metrics include efficiency, work quality, adherence to company values, and teamwork.

For many, “job performance” is associated with the dreaded annual review. But performance management is about helping a company achieve its mission and goals by consistently working with staff to improve their – and the company’s – effectiveness through:

  • Setting goals and clear expectations.
  • Providing continual feedback and support to employees regarding their goal-related performance.
  • Training programs that help employees improve their skills and enhance performance.
  • Rating employee performance more often to ensure expectations are met.
  • Recognizing and rewarding performance that meets or exceeds expectations and tying compensation and career advancement to predefined achievement metrics.


The metrics your company uses should be behavioral, observable and objective, and they should make it easy to track employee progress.


Performance Management Drives Business Growth

To truly understand what drives your company’s success, it’s critical to measure the true driver: your employees. They are the face of your organization, the ones who produce your product and/or serve your customers. 

An organization’s value is created through the effective implementation of a focused strategy. Management must:

  • Develop measures that drive and track employee progress.
  • Set appropriate goals.
  • Measure and monitor employee performance.


Performance management lets you deliver more efficient processes and more focused management data to drive employee engagement and performance. The result? Increased efficiency, growth and improved profitability.

Implementing performance management is one of the best ways to invest in your company’s talent. When employees share your wider business goals and are given the tools they need to develop the skills to reach those goals, your organization wins by achieving broad alignment and job satisfaction. The process is simple to put into action:

  • Set realistic goals.
  • Work with employees to define expectations.
  • Give employees the tools they need to achieve their goals.
  • Regularly review employee performance and take corrective action when necessary.
  • Facilitate communication and offer feedback, praise and acknowledgment of successful goal achievement.
  • Structure rewards and promotions that are aligned with targeted goals.


Measurement should be done consistently to ensure that your performance management program stays on target. Results should be carefully monitored to spot trends and compare results.


The Bottom Line

Measuring employee performance is vital to an organization’s success. Companies that can look deep inside their organization and discover the inefficiencies that exist, as well as the elements that work, position themselves for great success. When management and employees work together toward common goals, the odds are increased the organization will achieve new levels of innovation, growth and profits.

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