What are the best tools and methods for tracking employee performance?

1 Define performance criteria

To effectively track employee performance, it's important to define expectations and how progress will be evaluated. This can be done through objectives, competencies, and behaviors. Objectives should be specific, measurable, achievable, relevant, and time-bound goals that align with the organization's vision and strategy. Competencies are the knowledge, skills, and abilities needed to perform roles and tasks successfully. Behaviors are the actions and attitudes demonstrated in work, such as communication, collaboration, innovation, and ethics. Make sure to communicate these criteria clearly to employees and involve them in setting their own objectives and development plans. This way they can understand what is expected of them and how they can contribute to the organization's success.

3 Use performance tools

The third step to tracking employee performance is to utilize the tools that will help you collect and analyze the data from your performance indicators. These tools can range from software applications or platforms that automate and streamline the performance management process, such as performance appraisal systems, feedback tools, or analytics dashboards, to questionnaires or forms that gather the opinions or perceptions of the employee's performance from different sources, such as self-assessments, peer reviews, manager evaluations, or customer feedback. Additionally, you can use methods or techniques that record the behavior or actions of the employee in their work environment, such as checklists, rating scales, or behavioral anchors. It is important to select tools that are appropriate, consistent, and fair for your performance indicators and user-friendly and accessible for your employees and managers. Moreover, ensure that the tools are regularly updated and maintained for compliance with data protection and privacy regulations.

4 Provide performance feedback

The fourth step to tracking employee performance is to provide feedback that will help you communicate and improve the employee's performance. Different types of performance feedback can be used, such as formal meetings or sessions to review the employee's performance over a period of time, or informal interactions or conversations that acknowledge or address the employee's performance. It is important to provide feedback that is clear, specific, and balanced, and that focuses on the employee's performance criteria and indicators. Furthermore, two-way, interactive, and collaborative feedback should be encouraged, involving the employee's input and feedback.

5 Monitor performance trends

The fifth step to tracking employee performance is to monitor the trends that will help you identify and respond to changes in the employee's performance over time. Patterns, comparisons, and projections are all types of performance trends that you can use to recognize strengths and weaknesses, evaluate effectiveness and efficiency, and anticipate future outcomes. It is important to use trends that are relevant, meaningful, and actionable for your performance criteria and indicators, based on accurate and reliable data. The trends should be used to inform decisions and actions regarding the employee's performance management and development.

6 Adjust performance strategies

The sixth step to tracking employee performance is to adjust the strategies that will help you enhance and optimize the employee's performance. You can use different types of performance strategies, such as training activities that develop the employee's knowledge, skills, or abilities; incentives such as bonuses, commissions, or awards; and interventions such as warnings, probation, or termination. It is important to adjust strategies that are appropriate, effective, and fair for your performance criteria and indicators and that are aligned with the organization's goals and values. Involvement and consultation of the employee in designing and implementing the strategies is necessary, as well as evaluation of their impact and results.