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Employee Performance Tracking: Importance And Ways To Do It

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Employee performance tracking is crucial to meet the organization’s strategic goals without any difficulties. In addition, keeping tab of employee performance is a strategic approach towards their growth and development to elevate their skills and capabilities.

Your primary target must focus on implementing a robust system that will benefit both the employee and the organization. This process involves external factors like job satisfaction levels, assigning the right role, improving morale, boosting motivation, and the list goes on. HR managers and leaders need to understand the process, assess it, and introduce it in the work culture. This will help create a sustainable system that uplifts and supports the workforce’s abilities to their fullest.

This article will highlight the different ways of measuring employee performance and how it positively impacts its bottom line.

Importance of Employee Performance Tracking

Before we delve deeper into the topic, let us briefly overview all the system’s benefits in the workplace.

  • Improves employee performance and efficiency

  • Identifies employee strength and weaknesses

  • Determines individual skills and recognizes the best role for each employee

  • Enhances workplace productivity

  • Boosts employee morale

  • Cultivates a deep sense of accountability

  • Encourages innovation and creativity

However, the benefits mentioned above will solely depend on the correct implementation of the employee performance tracking system. Leaders need to align the system with the work culture to use it in the best possible way. You need to make the best use of employee strengths while minimizing their weaknesses to become proficient in their work field.

Recommended Resource: 8 Employee Strength That A Manager Needs To Know

6 Best Ways To Employee Performance Tracking

1. Realistic Goal Setting

Employees perform better when they understand what is expected of them and what roles they need to fulfill. But the big question is, do they really know their responsibilities and what is the requirement? If that poses a roadblock in an employee’s efficiency, it might be time that you rethink your goal-setting process.

The best solution will be to set realistic goals and objectives that your employees can achieve in the long term. Make sure that they are not overwhelmed with the tasks they have in hand. Instead of unrealistic goal setting, try to opt for OKRs and implement KPIs to keep track of each employee’s accomplishment. It will help you sort each individual’s strengths and weaknesses. Thus, assisting you in devising training programs to cement their skills to achieve organizational success.

2. Assess their Development

Before you finalize any product, what is the first thing you do? You will be running various tests and assess the outcome to check whether you have the desired results or not. Similarly, evaluating your employees’ development will provide them with an opportunity to understand the areas where improvement is needed.

Furthermore, ask your employees how they will align their goals and objectives to achieve success for the organization. Doing so will help you garner a holistic idea about the situation if your employees truly understand their roles and targets. Finally, have a data-driven approach and monitor employees’ overall improvement. It provides you with a perfect opportunity to evaluate any shortcomings and effectively bridge the skill gaps with proper developmental plans. Thus, helping you in maximizing employee performance.

3. Focus on Relearning

Learning a new skill is an essential part of life and necessary to evolve in this ever-growing world. However, without the enthusiasm and the willingness to learn, it becomes quite challenging to adapt to the changes swiftly. Therefore, it can pose a significant drawback and limit the learning curve both personally and professionally.

The same can be said for the workplaces as well. For an employee to accommodate any change in the workplace, the focus must be inclined to learn new things and relearn what they already know.

It is always a good practice to brush up on the acquired skills and knowledge for a neverending learning experience. With the corporate world getting digitally advanced, the tactics and organizational workflow changes drastically. This prompts the employees to become technologically proficient.

The scope to encourage a habit of continuous learning is crucial to understand the transition. This will open up endless possibilities to adapt and improve for the betterment in the long run.

4. Create A Robust Feedback Channel

Employee feedbacks form an integral part of any organization that focuses on improving employee performance and development. It should be constructive, on time, descriptive with all the details, and honest.

Your employees should have a clear understanding of the message you want to convey so there is less confusion. Also, keep them in the loop about the 360-degree feedback system and how it will positively impact their productivity levels.

A robust feedback system will allow you to evaluate the strengths and weaknesses of an employee. As a result, it will help them improve and improve what they do for the company.

5. Encourage Smart Work

Every organization consists of hard-working and dedicated employees. However, with the modernization of the corporate world, hard work is never enough to meet expectations.

Instead, employees should focus more on keeping a perfect balance between hard work and smart work. With the ideal blend of both, employees will excel in their roles and responsibilities.

Ask your employees to follow the SMART goal plan. It will help them become more efficient with their ideas and think out of the box. This helps them to enhance creativity and innovation in the workplace. In addition, a manager can use an employee performance tracking system to keep an eye on the growth of each employee.

It actually provides you with accurate performance metrics that will help in adapting to the ever-growing changes. This can be pivotal in enhancing employee performance and accomplish greater organizational success.

6. Conduct Surveys

One of the essential aspects of an employee performance tracking system is that it helps you understand what the employees think about their job and how well they perform. But to that, you need to first ask the right questions surrounding their responsibilities and their performance levels with the help of pulse surveys.

Pulse surveys give you real-time data and metrics crucial to determining an employee’s satisfaction levels and their impact on their growth. Conducting timely Once you have a brief idea about the roadblocks, try to solve the issues that will elevate the performance levels and create a productive and engaged workforce.

And to conduct surveys that matter, you can head over to our Pulse Survey tool that can help you have a better insight into how satisfied the employees are with their job and the changes needed to make the workplace better. Understanding your employees’ thought process is crucial towards better employee engagement and productivity levels that can elevate the organization’s bottom line.

Recommended Resource: Performance Management: How To Do It Right?

Employee Performance Tracking/Management Tools That You Need to Consider

Numerous performance management tools will help you to track an employee’s performance in an organization. The availability and accessibility of these tools have made a positive impact in the corporate world. They have helped organizations to bring the best in their employees.

Here is a list of the most influential tools that you can use to bring maximum efficiency:

  1. Performly
  2. 15Five
  3. Synergita
  4. Leapsome
  5. Reflektive
  6. Performyard

The right choice of tools will solely depend on the organizational needs and requirements, and workforce size. Do thorough research before choosing the best tool and enhance employee performance within the organization.

Read more: Performance Management Tool That You Will Need in 2022


If you have more suggestions on tracking employee performance, do drop us an email. We'd love to include your suggestions on this list.

Mrinmoy Rabha is a content writer and digital marketer at Vantage Circle. He is an avid follower of football and passionate about singing. For any related queries, contact

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