The ability to track and measure your people’s performance with hard data is a real privilege of today’s HR landscape. Technology has made it possible for almost anything to be measurable, and enables your team to make data-driven decisions.
While it’s not really necessary to collect terabytes of data, it is critical you at least have enough information to strategize and optimize your people processes. Curious to know how your system stacks up? Here are the top five metrics your performance management system should help you track.
Participation rate of performance reviews and surveys
This is one of the most basic metrics you should be measuring through your performance management system. Participation rates can help your team find trends and determine the success of a particular review or survey. Without tracking this metric, not only will your team struggle to keep up with submissions, but you won’t be able to draw any interesting insights on a company-wide or team scale.
One of the major advantages of switching to a performance management tool is that it allows more flexibility and a user-focused experience. For example, with Impraise you can:
Re-open reviews for absent or sick employees
Users can easily complete reviews in their own time (during the commute home) via web or mobile app
Automatically save drafts, so you can pick up where you left off
We usually encourage our partners to set a goal of 80% completion rate during their first review. The more people taking part in the process, the closer your organization will get to experiencing the full benefits of an enhanced performance management experience.
2. Amount of feedback exchanged
Increasing the amount of feedback exchanged helps to increase alignment for teams, for colleagues to share timely advice with one another, and for everyone to celebrate achievements in the moment. Relevant, real-time feedback has been proven to improve overall performance, as well as engagement and overall productivity.
To ensure your team is successfully adopting the exchange of feedback, it’s critical to track how often feedback is shared. For example, with Impraise managers are able to:
Track how often they’re sharing feedback with each team member on mobile devices (iOS and Android)
Identify when it’s time to provide feedback to each team member
Review past feedback given to each individual
Record notes on 1:1 conversations
With our HR dashboard, admins can see how much feedback is being exchanged within teams and pinpoint which ones might need more feedback training and support, whilst identifying internal champions who can support others with onboarding.
3. Quality of feedback
While it’s worth encouraging a frequent and regular exchange of feedback, not all feedback is created equally. When done correctly, regular feedback helps receivers develop their professional skills, career path, and to take ownership of their roles.
Differentiating helpful feedback from unhelpful feedback is challenging enough for people to do, let alone leaving it up to an algorithm. At the end of the day, feedback quality can really only be defined by the receiver of the feedback.
A simple way your performance management system can help you measure the effectiveness of feedback, is via surveys. These results can help your team evaluate the quality of feedback being exchanged, so you can better support your people, for example with feedback trainings or templates.
Many of our partners include a question about feedback exchanges in their manager-led performance check-ins as the last question: “On a scale of 1 to 5, how would you rate the quality of feedback you’ve received from me and your colleagues?”
As HR, you can scale this concept and use it as a standard question in company-wide reviews: “On a scale of 1 to 5, how would you rate the quality of feedback you’ve received from others at this company?” Don’t forget to provide space for people to share the context of their score!
4. Employee Net Promoter Score (eNPS)
Adopted from a metric commonly used in Marketing, NPS (Net Promoter Score), eNPS stands for Employee Net Promoter Score. It’s an easy way to gauge satisfaction within your organization continuously. If your long-term goal is to increase employee engagement, you should set goals for your eNPS score and track it over time.
It could be as simple as sending out a one question survey asking your people, “On a scale of 0-10 how likely are you to recommend our company to a friend as a good place to work?” The number they provide is their Net Promoter Score. You can also choose to provide space for those who scored under 9 to elaborate on why they gave this score.
Score of 9-10: Promoter
Net promoters are your company’s ambassadors, willing to promote your brand even outside of office hours.
Score of 7-8: Passive
Because they're neutral, Passive promoters aren't included in your eNPS score but they can have a huge impact. This group is important to watch because they can be more easily swayed by finding out and addressing the issues preventing them from being net promoters.
Score of 0-6: Detractor
Detractors are the group who are most likely to be disengaged and may even be actively seeking a new job. The more you can decrease your number of detractors by creating targeted strategies to address their concerns, the better.
You’ll see results that range from -100 to +100, but from experience we advocate that a healthy eNPS score is between +10 and +50. Depending on your engagement goals, consider adjusting your eNPS target each quarter to ensure you reach them at the end of the year.
5. Time to complete reviews
Another important metric to evaluate the effectiveness of your performance management system is the amount of time it takes participants to complete your review.
At some point you’ve probably heard that these processes take too much time out of a manager’s or individual’s work time. One internal Adobe study found that their managers were spending 17 hours per employee just for performance reviews.
If this has ever been a challenge in your organization, you can start tracking how long it takes your people to click submit. Tracking this time can help you determine whether you’re creating “easy-to-complete” reviews and surveys that only take a few clicks, as well as helping you continuously improve the overall review experience.
When you roll-out your performance management process, it’s important to carefully track and evaluate how it affects your overall success. Determine what your goals are in transforming your people processes, and find out which metrics are best to track help you achieve success.
No matter what your goals are, Impraise is built with powerful analytics that help HR teams evaluate their success with data. Get in touch to find out how we help HR visualize results, compare responses over time, and get to actionable insights. Helping you and your team make informed decisions that are based on real data.