Five Key Metrics of Performance Management System

Performance management system is a useful tool that lets employers quantify how well employees are delivering their work. The measurements can be used for determining employment actions such as wage review, transfers, promotions etc.

Employees may be required to achieve a certain number of employee performance goals before they are considered for higher positions. Some possible metrics that they may be weighed against include:


Most employers would accord productivity the most critical performance management goal. Appraisals and evaluations may be used to determine productivity levels. Systems are designed to find obstacles that prevent high productivity; the management then works to see whether these issues can be sorted out through streamlining of work processes, training and development. Some employees may show signs of interrupted productivity. When such a thing happens, efforts would be made to find the reasons and fix them.


One of the goals of performance management systems is to identify employee strengths, weaknesses and professional objectives. This enables companies to gauge employees’ capabilities and prepare them for handling additional responsibilities within their existing positions or for promotional opportunities. Experts point out that monetary rewards do matter when it comes to motivation but they are not the only thing that matters. Non-monetary employee recognition is also equally important. This can be done by assigning employees higher level duties and tasks, and giving them opportunities to gain leadership and coordination skills. Performance management systems can be used for selecting employees who are more likely to succeed in positions with more responsibilities.


This is about employers focusing on making employees accountable for the job they do. Performance evaluations help managers determine whether office workers are actually performing the jobs they were hired for. Tools such as observation and guidance are useful in holding employees accountable. Employees’ work is measured against metrics like work quality, efficiency and production.

Job Satisfaction

Employers need to create a work environment that encourages collaboration and synergy, two key factors behind productivity. Positive work environment also contributes to employee satisfaction and retention. Performance evaluations can be designed to assess the level of job satisfaction in several work areas. Employees happy with their work and support level show motivation in demonstrating their abilities while handling complex tasks.

Understanding of Organizational Objectives

Employees need to understand how they contribute to the organizational goals and objectives. Everyone in the team must know what is expected from them. Moreover, they should possess the required skills and support for achieving their targets. Performance management system helps ensure that the objectives of an organization and its employees are perfectly aligned with each other.

Wrapping Up

An effective performance management system can make a big difference to productivity levels and the quality of job execution in a company. You need to put in place a system that enhances the overall organizational performance.