To increase employee productivity in a company, of course you have to know what are the employee performance indicators.
As you know, Human Resources (HR) plays an important role for the success of a company.
If you want to own a great business or company, you don’t just have to hire the right people and put them in the right positions.
You should also try to maintain and increase the productivity of these human resources by assessing their performance, especially if you are part of the Human Resource Department (HRD).
Companies should use employee performance indicators as one of their HR plans to boost their productivity.
Not only that, companies must also ensure that employees get maximum results in accordance with the quality of their performance.
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By using a series of indicators in the process of assessing employee performance that can make it easier for you to measure employee productivity,
Then, what are the indicators used to measure and assess productivity? Check out the explanation in the following article!
What are Employee Performance Indicators?
Employee performance indicators are benchmarks, guidelines, or instruments to measure employee performance in the companies where they work.
There are a number of indicators to measure employee productivity which will later be useful in managing the team to become more qualified and solid.
Improving the quality of employee performance can also be integrated with HRD through the HR analytics dashboard.
That all of course depends on the needs and nature of the work of each division of a company.
For example, if you wanted to measure the performance of employees in your sales division, you could do this by evaluating their total sales.
Then, compare with the salary they receive whether it is in accordance with the quality of performance.
If you monitor and assess the performance of employees whose tasks are less measurable, such as the personnel division, public relations division, and others, then the appraisal process can be complicated.
This is where indicators to measure employee performance come into play. As a manager, of course you need to know what good employee performance indicators are in order to be able to carry out an effective assessment.
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Why Need Employee Performance Indicators for Evaluation?
Many companies use employee performance indicators to measure employee productivity in order to achieve predetermined goals or targets.
Measuring employee performance is not only done in terms of quantity, but also in terms of quality.
That’s because qualitative data in assessing employee performance using employee evaluation indicators will help you find new ways to motivate them.
Not only that, qualitative data can also assist you in delegating tasks properly according to the abilities of each employee in each division.
Using the employee performance review process will allow you to better understand your employees’ motivational triggers and weak points.
Therefore, this assessment should also be made part of the human resource management process with the aim that employees can become better.
Then, how to measure employee performance effectively?
The answer is to use applications such as HRD software that automate the process of recording employee hours, managing employee tasks, measuring employee performance based on KPIs and many other features.
That way, it will be easier for you to obtain data to serve as key performance indicators for evaluating employee performance.
Call it the problem of team management, employee job satisfaction levels , achievement achievements, and project management strategies to an optimal level.
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In addition, employee performance indicators are also important for assessing payroll operations. That is, how well your employees’ salaries reflect their performance and potential.
What Are Employee Performance Indicators?
As previously explained, performance indicators are a tool or instrument to measure the level of achievement of employee performance.
Following are some indicators of good employee performance in a company:
1. Quality of Work
How do you measure the quality of an employee’s work?
You can measure it from the employee’s perception of the quality or workload whether it is in accordance with their abilities or skills.
You can also see the quality of employee work from the quality of work completion whether the results are good or bad.
If employees are able to complete their work quickly or on time according to the company’s provisions, then the quality of their work can be said to be good.
You can also see the quality of an employee’s work based on performance errors and customer feedback from the employee.
2. Working Quantity
If an employee’s performance appraisal is done based on quantity, then pay attention to the amount that the employee is capable of producing.
The amount referred to here can be the number of units or the number of activity cycles produced.
For example, the quantity of work of an employee can be said to be good if he is able to complete more tasks within the time specified by the company.
Or if the employee is able to generate more profit because he has succeeded in selling more products than the target.
3. Time Efficiency
The next good employee performance indicator is seen based on time efficiency.
An employee can be said to have good time efficiency if he is able to maximize the time available.
In addition, you can see the efficiency of an employee’s time from the timeliness in completing tasks and work.
That way, the work will not pile up so that it interferes with other work.
A good employee is able to use his time as efficiently as possible, as evidenced by his ability to manage time. Of course HRD must also apply a good attendance management system as well.
For example, in disciplined absences and coming to the office on time, completing work deadlines, meeting appointments, attending meetings, and so on.
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4. Effectiveness
What is meant by effectiveness here is the level of use of existing resources, whether in the form of money, labor, raw materials, information, or technology.
If employees are able to maximize the utilization of these resources to increase productivity and quality of performance, goals will be more easily achieved.
To achieve effectiveness at work, of course an employee needs several skills that can support his performance.
Among them are problem solving abilities, critical thinking, analytical, innovative, and planning skills.
Problem solving ability is useful for formulating alternative solutions to solving problems that are relevant and applicable.
An employee who has this ability tends to be more capable in taking and making decisions.
Meanwhile, critical and analytical thinking skills are useful for helping employees see and find complex relationships between the problems they are facing.
By having this skill, employees are expected to be able to describe problems so that it is easier to analyze and find solutions to these problems.
Good employees must also be innovative, namely being able to create new ideas or ideas that have a good impact on the progress of the company, divisions, and work performance.
Good employee performance indicators can also be seen from the planning skills they have.
If an employee always makes plans before carrying out tasks and monitors his work, then the employee has good planning skills.
5. Independence
Independence is the ability of individuals to carry out their roles and functions without having to depend on assistance, guidance or supervision from other people.
It is important for companies to increase the independence of their employees so that the company’s productivity can increase significantly.
Independence here includes all the indicators above as well as other things such as honesty, obedience, initiative, self motivation, target orientation, and so on.
So, that was an article about employee performance indicators that you can apply to your employee performance appraisal or evaluation process.
We hope reading this article can help you assess employee performance effectively, objectively and measurably.