Top 7 Metrics to Measure Employee Performance


Usually, any work – a person, a company, an institution – is evaluated by the result, which is expressed in any numbers: sales, profits, products manufactured, the number of contracts concluded, attracting customers, the number of appeals or complaints from consumers, and the like. Fixation on quantitative indicators of work and encouragement only for their achievement can lead to the consolidation of unfair practices – after all, the result is needed at any cost. Furthermore are the seven top metrics which will help to measure employee performance. 

  • The income per employee 

This is the most effective indicator for assessing labor productivity and the effectiveness of innovations. This criterion is understood by financial directors and is perceived by them as a standard. In fact, it denotes the value of each employee, i.e., how much he earns for the company. 

The higher this indicator, the better the organization functions. The formula is simple. It is necessary to divide the total annual income of the company by the average number of full-time employees. Even better, these masstamilan numbers can be made public so you can compare yourself to your competitors.

  • Management by objectives

One way to praise your employees is to use management by objectives. Translating organizational goals into specific individual goals is what management by objectives is. It is aimed to improve the performance of an organization. These goals are set by the employee and the manager, and they are made into objectives. 

  • Appraisal form manager (subjective)

It is a common thing that the evaluation of the performance of employees happens twice a year. There are several criteria that employees are assessed by: the most common of them is the quality of their work. 

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  • Defects of the product 

Measuring the quality of the production objectively is tricky. Usually, the number of product defects per employee or per team is the formula that is used to measure output. Obviously, defects or incorrectly produced goods, or poor services indicate bad quality of work. 

  • 360-degree analysis

The 360-degree analysis is another employee performance measurement tool. The feedback asked from the employee’s subordinates, manager, and colleagues are what 360-degree feedback is. They are asked to provide accurate information about the employee’s working performance and skills. This tool is one of the most common ways of metrics of employee performance, also one of the most accurate and effective. 

  • 180-degree analysis

The 180-degree analysis is a compact version of 360-degree feedback metrics. This time employee’s direct colleagues and manager are interrogated. Customers are not asked for feedback in this ranking tool. This ranking is often used for people who do not have direct contact with customers and do not manage other people. If you sell services online, you can’t consider only the feedback of the customers as a criteria for ranking the employees, different types of analysis are required. 

  • Forced ranking 

Forced ranking is a way of assessing workers by asking managers to make a list of their workers by the level of their performance. In this list, the employees are compared with each other and assessed comparably. After using this tool of ranking, usually, 10% of the workforce is fired. This tool is considered as a very powerful one to improve the performance of the employees and to increase the company’s income as a result. 


To conclude, it must be said that one single approach of the employee performance measurement is not enough to assess the quality of work of all the employees of the company. There are a lot of versions of assessment, but none of them can be considered the best because of the relativity of the performance indicators. Test different types and choose the best fit for your employee performance measurement to make the process more efficient.