10 Performance Management Tips For Measuring Employee Impact



Knowing the tangible impact employees are having on your business is critical. In order to do so, you need an effective performance management program. The way this program looks varies from business to business. So we asked 10 HR experts to share their top tips for measuring employee impact. 

Read on to learn about the varying methods of tracking this important metric.

Keep It Simple

It can be easy to get carried away with measuring employee performance. The more “impact” is analyzed, the deeper you want to go in order to get an accurate measurement. However, it is important to remember to keep things simple. Simplifying an employee performance management system starts with identifying the elements and milestones of a program. Is there an annual performance review? Monthly performance check-ins? Engagement surveys? Once the milestones and elements are established, then you have a simplified foundation to grow the program. 

Michael Bratta, Interim HR

Reward Excellence

Top performance is naturally required. At the same time, our Swooners are fully appreciated and recognized for their contributions throughout the year. We love to say “Thank you!” by whisking away our superstars to an all-expense-paid holiday each year. Not only does this help communicate what excellence looks like for employees, but it also helps improve bottom-line performance.

Michelle Baker, Swoon Group

Get Both Quantitative and Qualitative Feedback

There's a lot of different things that you can do depending on your situation. Get the employee’s side of the story in terms of measuring employee impact. The numbers and metrics organizations use to measure performance offers a wonderful quantitative view. However, the quantitative has to be combined with the qualitative. How do you get the qualitative measurements? Ask the employee how they feel about the impact they are making. A simple conversation can clear things up and make the case for or against the employee and their contribution to bottom-line performance. 

Court Will, Will & Will

Frequent Check-Ins and Opportunities to Provide Feedback

Hopefully, your program has frequent check-ins and opportunities to provide feedback in an informal way. No one should go into official reviews confused as to where they stand or ambushed with feedback that could have been critical to improvement. No one likes a surprise!

Emily Beattie, HR Recruiting Manager

Clear and Frequent Communication

If this is a tactic to be used, it cannot be an annual conversation. It must occur and be documented at a minimum quarterly. As the administrative tasks of utilizing an annual formal performance review are is often already a logistical burden, I do not agree that it helps attract and retain key employees. Top performers know they are performing and those that mediocre or just getting by, benefit the most from this type of performance management. The key is to establish measurable goals from the onset and have frequent, documented communications with employees and their immediate manager.

Katie Gillespie, Senior Recruiter

Keep it Consistent 

At Arrow Lift, we have found consistency to be the key to an effective performance management program. Consistency allows us to be fair while managing the performance of team members in different roles and at different points in time. We strive to be consistent by standardizing forms, conducting reviews at regular intervals, recognizing strengths as well as weaknesses, and by setting forward-looking goals. While we continually look for ways to improve upon our existing practices, we do so in ways that will maintain consistency, both for the benefit of each team member, as well as to strengthen our organization. 

Pete Newstrom, Arrow Lift

Define Excellence

Under­stand what​ ”excel­lent” looks like for your business. Is it to align indi­vid­ual and organ­i­za­tion­al objectives? Do you want to pro­vide the basis for per­son­al development? Are you doing this to inform per­for­mance or pay decisions?  Once you have established your goal, what would success look like to indicate that you have reached your goal?

Vidya Betesh, Human Resources Generalist

Allow Employees to Evaluate the System 

After each evaluation cycle or activity, to ensure that a performance management system is having a positive impact, we must allow the employees to evaluate the system. Did they get clarity on what to do to excel? Do they understand how to grow their career with your company? Did they feel that the program was built to support them? Get their feedback and then make necessary adjustments to ensure they are being well-served by the system.

Niki Ramirez, HRAnswers.org

Set SMART goals

Set goals which come from establishing performance-based objectives for your employe and make sure the goals are S.M.A.R.T. - Specific, clear and understandable. Measurable, verifiable, and results-oriented. Attainable, yet sufficiently challenging. Relevant to the mission of the department or organization. Time-bound with a schedule and specific milestones.

Evelyn Vega, Staffing Strong

Have Clear Measurements

Performance is only as good as its definition. How do you define performance? Know what performance means for every employee. Establish some metrics that support that definition. And then, measure those metrics and revisit them often with the employee to help them see their impact.

Brett Farmiloe, CEO & CHRO


The SHRM Blog does not accept solicitation for guest posts.

Add new comment

Please enter the text you see in the image below: