Performance Reviews

Top 20 employee performance metrics to track

Discover the top 20 employee performance metrics every manager should track to boost productivity, improve engagement, and align activities with business goals.

Fabien Pinel

Fabien Pinel

— 7 min read
Top 20 employee performance metrics to track

One of the toughest challenges of running a business is understanding whether your team’s hard work is translating into actual business objectives. This is even more important when you’re looking for exponential business growth, but you can’t quite put your finger on why the day-to-day work feels disconnected from your vision. 

Let’s just say that everything is harder to measure when you don’t have quality metrics in place, and gut feel isn’t exactly the most reliable predictor of performance. Help is on the way! In this discussion, we bring you 20 top employee performance metrics and tell you how to implement them. 

Quick Overview

Employee performance metrics measure how well individuals and teams contribute to company objectives. These metrics can be quantitative (like sales performance or project completion rates) or qualitative (like engagement and customer satisfaction metrics). Together, they form a clear picture of an employee’s effectiveness and the broader business outcomes.

Table of Contents

How to measure employee performance metrics

Performance management is about much more than gathering good metrics or running an annual performance appraisal. It's about an ongoing process of evaluating all activities to ensure they contribute towards better business outcomes. 

You need to understand both the big picture and the individual inputs and outputs that make up that picture. To provide this information, metrics should be set according to three categories:

  • Quantitative measures: Data-driven metrics that focus on output, productivity and efficiency. They tell you what employees do. 
  • Qualitative measures: Important employee performance metrics that tell you how employees do their work. 
  • Engagement measures: Measurements that assess how motivated and committed employees are at achieving important employee performance metrics.

An easy way to gather employee feedback for engagement measures is to do it inside a communication platform - like Slack. Set up pulse surveys, polls, and kudos with apps from BuddiesHR, and begin to gather engagement metrics immediately. 

Top employee performance metrics and how they’re applied

Work Quantity Metrics (Quantitative Measures)

Errors made

Tracks the number of mistakes an employee makes in their work. Fewer errors signal strong attention to detail and process. Tracking errors can also highlight the need for further training. 

Units produced

This metric is focused on production. It is used when output during a specified period is important. It helps to assess individual employee contributions towards operational efficiency. 

Resolution rate

For customer-oriented industries where customer resolution time matters. Resolution rate measures how quickly and effectively issues are resolved. A high rate reflects responsiveness and skill proficiency. 

Task/Project completion rate

This number reflects the number of tasks or projects completed in a specified time frame. The metric provides insight into how productive an employee is.

Number of sales per period

This is the simplest way to assess sales employees; however, the number of leads and the close rate are better indications of long-term success. 

Number of outbound sales calls made

Measures the number of client interactions and attempts to finalize deals. A high number of calls shows commitment to reaching sales targets.

Customer query resolution

This metric is most often presented as a percentage. It is achieved by dividing the number of issues resolved by the total number of customer queries. 

Number of emails/calls/queries handled

Relevant to support roles, this measurement tracks the volume of correspondence handled and finalized. The employee’s productivity, responsiveness, and skill level are measured.

Conversion rate

A key business metric that tracks the percentage of prospects turned into actual customers. It shows a direct link between individual contribution and organizational success.

Cost per task

Tracks the financial cost of each task and divides it by the number of tasks completed by an individual. An important metric for resource allocation.

Average revenue generated per employee

Shows how much revenue an employee generates through the work they process. It is one of the clearest ways to assess overall business performance. 

Goal achievement rate

Measures how well an employee meets organizational goals. It is a powerful indicator of alignment with business priorities.

Work Quality Metrics (Qualitative Measures)

360-degree reviews

Gathers performance input from managers, peers, and customers to assess the overall level of performance by a worker. It contributes to a balanced perspective of overall performance. 

Rate of product return

A quality indicator tied to customer satisfaction. Few returns indicate better sales, production, and delivery outputs. 

Customer satisfaction scores

Measures how satisfied customers are after an interaction. A consistent rise in scores indicates progress towards service excellence.

Continuous improvement metrics

A metric that measures the innovative ideas and problem-solving abilities shown by employees. An increase shows active participation in reducing costs, improving processes, and increasing customer satisfaction metrics.

Employee engagement metrics

Learning and Development participation

A metric that measures an employee's acquisition of relevant competencies for task completion. This can be done through test and quiz scores.

Absenteeism rates

The average time an employee was absent during a specific period. When compared with performance output, this metric provides insight into employee commitment. 

Engagement scores

These metrics come from pulse surveys or engagement platforms. They provide a good indication of morale. They also help to identify cultural strengths and weaknesses.

Employee Net Promoter Scores

A reliable metric for employee sentiment, it asks one simple question: ‘How likely are you to recommend working for this company?’

How to discuss employee performance metrics with your team

Working out which metrics measure employee performance effectively is only half of the story. Now you need to explain to your employees how you will measure individual performance and why you’ve chosen certain performance data - that can be the tricky part. 

Any performance management process worth its weight must involve employees. The simple reason for this is that you need their understanding and buy-in. The easiest way to do this is to pitch performance measurement in favor of employee development as well as business improvement. These simple steps will help you through these discussions.

  1. Schedule an information session with all employees where you pitch the general idea of performance metrics. Be prepared to show your employees how businesses that measure key data do better than those that don’t. Explain the process you and your People Ops team went through to draft the metrics.
  2. Schedule team sessions where you cover job-specific performance measures. Show the team exactly how it will be done, what data will be collected, and how their performance will affect the company’s bottom line. Deal with concerns about any metrics you’ve set. 
  3. Managers or HR professionals schedule 1:1 sessions with their teams after the first full cycle of employee evaluation. Successes, concerns, and challenges are discussed, and changes made. 

The 1:1 meetings are where you’ll gather the most information about how it’s going. In our focus piece - Guide to One-on-One Meetings, you’ll find out how to prepare and run great meetings. 

How to run performance reviews for improved business performance

The work you’ve put into choosing quality metrics will translate into improved business performance - if you keep the focus not only on measurements, but also recognition for the employees who help you achieve company objectives. 

The goal is to automate as much of the data collection, tracking, and trend analysis as possible. The best-case scenario is a system where you can check trends on a dashboard or pull performance reports whenever you need them. For employee engagement metrics, this can be accomplished by adding engagement apps, like those from BuddiesHR, to Slack. 

Now you can run annual, quarterly, or monthly performance reviews - and actually focus on the discussions instead of spending time collecting data. At the same time, you’re geared to implement a performance-based incentive system that rewards hard work and dedication.

💻 Performance review resources by BuddiesHR:

  1. Employee performance goals: Examples you can use right now
  2. 3 Performance Review Examples To Inspire You
  3. Performance review tips for managers: Tips to keep in mind
  4. Coaching employees in the workplace for success

Conclusion

Quality metrics will turn intention into action and propel your business forward. They translate your strategic vision into measurable behaviors and give you a language for discussing performance with your employees. 

With tools like BuddiesHR and our list of 20 top employee performance metrics, you’ll transform reviews into real progress. But don’t just take our word for it - we’ll let Peter Drucker (known as the Father of Modern Management) have the last say: “What gets measured, gets managed" and "If you can't measure it, you can't improve it."

Frequently Asked Questions

1. What are employee performance metrics?

Employee performance metrics are the quantitative and qualitative metrics that provide insight into organizational performance. The metrics can include revenue per employee, sales performance, quality measurements, customer satisfaction scores, and process improvements. Other metrics focus on operating expenses, project performance, and products produced. 

2. What is KPI for employee performance?

KPI is the acronym for Key Performance Indicator. It refers to the quantifiable measures used to track key employee performance. In essence, all KPIs should be quantifiable, measurable, objective-focused, and achievable. 

3. What are the four key performance indicators?

Four key performance indicators that apply to most jobs are: Productivity, task management, team performance, and project success. They are known as quantitative metrics, which are objective, numerical measurements that track and analyze data by comparing results. They provide clear insights into employee performance. 

4. Why do I need employee performance metrics?

Key employee performance metrics help you to measure overall organizational success and identify skills gaps. Employee productivity should be objective and easily tracked in order to get a clear picture and make data-driven decisions. With the right employee performance metrics in place, you can have better performance reviews and 1:1 meetings with your employees.  

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