Measure of Performance: How to Evaluate Achievements at Work

By Indeed Editorial Team

Published 4 May 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

It can be important for employers to measure achievements at work and determine areas of improvement for employees. Setting realistic goals in a company can encourage employees to increase their productivity and improve their overall work performance. Understanding the different methods of measuring performance and why it's important for an organisation can help you identify key strengths. In this article, we define performance measurement in the workplace, explore why it's important for personal career development, provide examples of performance methods and discuss how you can measure performance.

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What is the measure of performance at work?

Learning about the measure of performance can help you find methods that evaluate achievements and increase productivity in the workplace. Performance measurement usually allows employers to identify strengths, workplace habits, skill development and career progression among employees and other team members. Some companies use a range of methods that monitor work performance throughout each shift to determine which employees meet the company's goals. This can be important for the company to grow stronger as a team and refine its standards, long-term goals, workplace environment and employee satisfaction.

Managers can also evaluate performance reports to determine how employees have developed their skills. This can help managers create training programs and leadership development plans for employees who want to exceed established goals in the company. For example, a manager might produce a rating scale that evaluates employee performance on a scale of one to five, with five being the highest rating for increased productivity levels. Measuring work performance is a continuous evaluation that encourages people to stay aware of standards.

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Importance of performance measurement

Performance measurement is important for personal career development and reaching satisfaction levels in the company. Some employees want to hear about their key strengths and how they contribute to the company's success, as this may encourage strong motivation. Verbal feedback in meetings is also important to drive success and promote a healthy working environment. For example, analysing sales figures against each employee is a great way to determine who's excelling and can receive verbal praise from the team. Similarly, measuring results to determine performance can help employees collaborate to improve processes, such as selling or marketing strategies.

Department managers might conduct regular team-building activities for employees, which can motivate people to increase their collective work performance. A company that regularly reviews performance may also cultivate a hard-working and determined team, which can encourage high levels of determination and success. Organisations may want to be transparent with performance results and remain honest about the achievement levels of employees to determine whether employees can continue their roles efficiently. It can also help managers identify areas for improvement and offer improvement opportunities, such as a skill-focused workshop.

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Methods for performance measurement

Following certain performance measurement strategies can help you evaluate team members individually. Employers typically choose methods that depend on the company's performance indicators, such as engagement with sales and customer satisfaction. Here are some common methods for measuring performance:

Performance standards

The performance standards method helps to define the company's expectations before the start of each week or month. Employers might use this strategy to establish the standards and reinforce daily, weekly, monthly or yearly objectives, depending on the type of industry and job. This may encourage employees to create new long-term goals and work harder to achieve them. Providing clear work expectations can offer team members a clear path when they eventually improve their productivity and find new ways to exceed the company's standards.

Rating system

A rating scale for performance measurement can determine key strengths in the workplace by using a numerical rating system. One usually represents the lowest form of work, and five can signal strong determination and effective task completion. For example, when the manager evaluates work performance among employees, they might use the numbered scale to differentiate areas of improvement from efficient teamwork skills. This method may help managers to delegate tasks to different people and monitor how they manage those responsibilities.

Management by objectives

Employers may choose the management by objectives strategy if they want to evaluate team members in managerial positions. This method can involve arranging meetings with employees individually and finding out their personal goals. In the meeting, managers can list valuable resources to help the employee achieve those goals. Employers may also set deadlines for the employee, depending on the type of goals and managerial position. For example, if the employee's objective is to progress to more senior roles, the manager might provide the employee with skill development programs and training sessions that focus on improving leadership qualities.

360-degree feedback

This method can gather feedback, opinions and personal assessments from employees regarding their relationships and duties in the team. The employer may ask the team to give each other feedback that helps them to improve or complete their tasks. For example, once the manager has gathered enough information, they can notice positive trends, work similarities and improvement measurements among employees. Gaining feedback from team members can help employers gauge the level of professionalism and motivation in the workplace.

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Self-assessment tasks

The self-evaluation method can encourage employees to evaluate their own work performance using tests that include multiple choice answers, essay questions and personality quizzes. This strategy might help employees notice areas of improvement or goals they wish to achieve in the job. Managers often allow employees to reflect on their own behaviour, as this can give them time to think about career aspirations and the company's objectives. Self-assessment tasks may also generate important conversations between all team members.

How to measure performance at work

Reviewing personal strengths may encourage people to accomplish the company's objectives and find other ways to improve. You can choose methods that identify areas of improvement, desirable talent, key strengths, satisfaction levels and professional skills. Here's a simple guide you can follow when measuring performance:

1. Choose your method

Planning what method to use beforehand can help you measure work performances effectively. For example, if you want to evaluate people who work best in managerial positions, you can choose the management by objectives strategy to determine their leadership skills. The rating system may be a good place to start if you want a basic measurement of work performance before advancing to complex team activities. Understanding what you wish to achieve for the company and how you prefer employees to work can help you decide on a suitable method.

2. Start measuring performances

Once you have chosen the strategy, you can start measuring employee performances at work and noting down performance results. Keeping physical documentation of this evaluation process may encourage you to compare work performances in the future. During the performance measurement, you may converse with people in the human resources department to form teamwork assignments and employee meetings. This can allow you to communicate with employees after the performance review and suggest ways for them to improve teamwork.

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3. Evaluate the results

Reviewing the performance measurement results can help you determine areas of improvement or key strengths among certain employees. This can be important for the company to grow stronger and reach levels of success in the business. If you haven't gathered enough information, you can use another method to obtain further work performance results. For example, providing employees with self-evaluation assignments can offer you more personal views about their work environment and how they feel about delegated or extensive tasks.

4. Communicate with employees

Arranging meetings with the employees to discuss the performance results can ensure they understand the improvements and strengths. For example, if you tell the employee how to develop their communication skills, they can find new ways to practice verbal communication strategies. This type of conversation may encourage people to achieve their goals if they know how to do it. It might also be worth scheduling group meetings with the team to explain the importance of teamwork activities and collaborating to exceed the company's objectives.

5. Create detailed action plans

The performance measurement results may give you enough information to create detailed action plans. You can build plans for each month or at the end of every year, depending on the level of success in your team. For example, if you found that employees wanted more tasks to complete in shifts, you can build a plan that provides employees with extra responsibilities or specific goals to achieve throughout the day. The employee's productivity might improve due to an increased sense of job satisfaction and might encourage them to feel more confident when approaching you about future concerns.

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