Employee Performance Management System

In recent research, it was found that 75% of multinational organisations have already moved towards adapting a continuous model of employee performance management. The Employee performance management system is a structured approach to measuring the performance of employees. This model helps the organisation align to its mission, goals and objectives with the workforce.

Importance of Performance management in organisation -

Every organisation wants the top talents who are filled with enthusiasm and are ambitious enough to perform their roles perfectly and always exceed expectations. The reality is human beings do not show constant performance tendencies, sometimes they are too energetic and sometimes not. It is important to have a good performance management system that will proactively engage your employees in the organisation’s goal-setting process. It will also make sure that all goals are in correlation with the organisation’s overall target. It is immensely important for organisations to apply the correct model of Performance management to ensure that organisations have done it correctly to yield the best results for themselves as well as for ensuring growth of their employees.

How to measure employee performance through a performance management system?

Measurement of work performance is one of the most important constituents of modern leadership and business management. It is important to measure and manage employee performance since it gives organisations the ability to properly gauge their employees efficiency and draw strategies based on conclusions to achieve desired goals and objectives. The following are some of the ways to measure employee’s performance.

1. NPS of employees.

The employee Net Promoter Score (eNPS) questions how one would likely recommend working with [employee name] to a friend or a colleague and is based on a survey sent to the employee’s internal network. This collection of metadata can enable much more insights on collaboration and workplace optimisation as well as can help in understanding the employee’s work quality and performance.

How to calculate the eNPS?

To calculate eNPS for measuring employee performance, one needs to ask the standard question. Suppose; If 70% of respondents are promoters and 30% are detractors, then you have an NPS of 40.

The formula makes sense if you know what the promoter and detractor labels actually mean, and how they get assigned in the first place.

NPS = % of promoters(those who have given ratings between 9 and 10) – % of detractors (those who have given ratings between 0-6)

It is imperative to find right ways to measure and understand these scores to righly assess employee performance management. When done correctly, it can help address concerns, make relevant changes and fuel the development to cultivate more promoters. Significantly, it sets up trust with employees when you give them a voice and follow up on their info.

2. Measuring by the quantity produced

It is a quantitative method of measuring the performance of employees by the numbers of products/ goals achieved in the given timeframe. Employee performance management systems can be easily measured in smaller organisations by adopting this method. It is a simple, effective and time-saving method. However, not every organisation might be able to adopt this method as some jobs are more difficult to quantify.

However, there are certain disadvantages of using this method. Whether one measures quality by units produced, sales not every sale is a straightforward metric to be calculated. A classic example here would be assessing someone’s ability to solve a Rubik’s cube in an hour however other factors like someone already trained might be able to solve 100 per hour.

3. Measuring through 360-degree feedback

360-degree feedback and profiling is a straightforward, intuitive, multi-source feedback model that allows organisations to identify key strengths and developmental needs of their employees. In this feedback system, an individual receives feedback from multiple sources such as colleagues, subordinates, superiors, supervisors, and even customers, who interact with the person being reviewed.

The objective of 360° feedback is to provide holistic findings about an employee’s performance, potential, and expected outcomes. Organisations may seek to evaluate the 360-degree reports to share qualitative feedback and overall analysis for employee’s performance. Additionally, these reports generated are self-explanatory, comprehensive and give clear insights on key strengths, gaps, and recommended actionable. This practice is claimed to be significant in understanding employee’s performance management.

4. Measuring employee time management

This method helps organisations to measure the productivity of employees by tracking the time taken in completing tasks assigned to them. Organisations should set up a performance management system where employees are open to sharing their real-time status. The software can be installed so that employees can update their work and can be tracked by the organisation to know about the time-consuming.

Measuring adherence to timelines and the effect one has on the performance of the work has to be calculated to understand and take corrective actions.

While organisations understand and expect employees to be unable to complete their tasks once in a while, missing timelines and not being present can also lead to decreased productivity and can have a major impact on other team members. This can also lead to extra pressure on other team members who have to make up for their absent coworker and this can both affect work quality and safety. If this is seen regularly, organisations should take steps by making employees aware of time management and focus.


Capturing employee performance by using one single employee performance metric seems impossible. The best employee performance management system combines both qualitative and quantitative metrics done by multiple people to arrive at a right conclusion.

Employee performance metrics can also be combined with recruitment data predicted through assessment tools like 16pf to understand which hires are most likely to be top performers in an organisation. This is done by a standardised personality test that measures 16 primary personality factors and 5 global personality factors to assess the candidates and make better hiring decisions.

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