Performance Metrics

Setting Employee Performance Metrics

Realistic Performance Metrics Are Essential

Performance Metrics Setting GoalsEmployee performance metrics must be linked to the organization’s larger picture.

For performance metrics to be purposeful and effective in motivating employees, they must be tied to bigger organizational goals.

When employees who don’t understand the roles they play in company success, they are much more likely to become disengaged. Without regard to the level the employee is at, they should be able to articulate how their efforts support the broader company strategy.

Since employees are ultimately responsible for reaching their goals, they will need to have a strong voice in establishing them. Ask the staff member to outline goals that closely contribute to the organization’s objective. Have them identify performance metrics that will support reporting effort and achievement.

Once staff members have suggested their initial goals and related performance metrics, it is a good practice establish whether or not the performance metrics are both practical and challenging enough.

There is a fine line between good and poor performance metrics

There is a fine line between good performance metrics and poor ones. Good ones have the power to energize an organization. Poor ones will tend to dampen morale and employee engagement.

When the performance metrics seem overwhelming and unachievable, they drain employees motivation. The enormity of the problem causes people to freeze up, and the extrinsic motivator of money crowds out the intrinsic motivators of learning and growth.

Top-performing organizations

Top-performing organizations understand that employee engagement is a force that drives performance outcomes. In the best organizations, involvement is more than a human resources initiative – it is a strategic foundation for the way they do business.

Employees who are engaged are more productive, more profitable, more customer focused. Engagement will also reduce the temptations to leave. The best-performing companies understand that an employee engagement improvement strategy linked to corporate goal setting will help them win in the marketplace.

Through sharing financial and operating results with employees you can also increase employees’ sense of ownership. However, being open is not enough. You will need to be sure the employees have the knowledge to understand financial statements and insight into how their own jobs affect the numbers.

Achieving higher performance and success is not dependent on one simple factor or even two or three factors. The operating environment and collective engagement of the organization and its culture will be the driver in achieving the desired results.

Interested in learning more about setting performance metrics in your organization? Give us a call – 520 940 6152 or submit out Contact Form.