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"Constantly think about how you could be doing things better."
- Elon Musk, Investor & Entrepreneur
4 min read
By Nick Bell

How To Measure Employee Performance


Employers want to make sure their employees are performing at a consistently high standard. It should go without saying that the better you perform as an employee, the more opportunities you open for things to get sent your way (windows to grow and take on new challenges). You don’t want to be stuck doing the same old thing for years and never looking for opportunities to grow your skillset.

Here are some metrics that are commonly measured to ensure you are on the right track. Once you start analysing the results, you can work with your employer on how to improve.

Work Quality Metric

When it comes to your work, quality is worth its weight in gold and should be valued over all else. Using work quality metrics, your performance is usually based on your finished product. This can be measured on the number of mistakes you have made, if there are defects present, etc.

Employers may start this conversation with you by using the 360 or 180 feedback process. 360 feedback is when you, your peers, your employer and customers evaluate your performance. This allows you to analyse how you perceive yourself and how you are perceived by others .

With 180 degree feedback, an assessment is only performed by employers and their colleagues and is used when someone has no direct customer contact and their role is not within management.

It is less common nowadays, but some employers may still utilise a system known as ‘forced ranking’. This allows employers to rank the performance of their employees from best to worst. When utilised, the bottom 10 percent of the list who are consistently underperforming may be sacked.

Work Efficiency Metrics

Does the phrase working smarter not harder ring a bell? Work efficiency is the ability to get the most output from the least possible input. The idea is that when you improve work efficiency, you’ll be able to get more work done in the same amount of time and with the same amount of resources. Work efficiency can be expressed with the mathematical formula r=P/C where r=ratio, p=product and c=cost.

Some of the most common work efficiency metrics to look out for include your ability to meet deadlines, how you prioritise your competing tasks and if you consistently achieve your goals. Are you clocking lots of overtime? Take a look at how you work and if there are any ways you can improve your work efficiency.

Work Quantity Metrics

Generally speaking, quantity is easier to measure than quality. The metrics used will depend on the industry. Retail looks at inventory turnover, average transaction value and customer retention whereas manufacturing will look at production costs, downtime and volume.

For employees working in sales, their employers will measure their success based on the number of sales they have made. Those who work in sales will often earn a base pay plus commission for every sale. The more sales you make, the better you get paid.

Measuring sales can also determine the employee’s output. If your sales numbers are low, that’s an indication that your output isn’t at it’s best. Other sales metrics include the number of calls or visits made, number of active leads, and so on.

Employers will also look at the number of units produced which is obviously a great metric to measure in the manufacturing industry. The number of units produced will often tie to the overall demand of customers. This metric does not include any of the units that have been disposed of due to quality issues.

Another great example that is easy to track is a call centre. The metrics being measured will include average call time, number of first-call resolutions, number of total problems resolved, and so on. Here, one of the best performances for employers to look for is how quick and efficient a problem can be solved. This demonstrates the employee’s knowledge and their ability to work with customers based on the issues they deal with on a regular basis.

About the author


Co-Founder of Lisnic.com 🔥 & Founder of 12 digital agencies 🎯
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