A typical business has employees in a variety of roles, and they all contribute to the bottom line in different ways. As a business owner, it’s important that you know how to track the impact each individual employee is making to help your company.
Why Should You Measure Your Employees’ Success
When you know how to measure the value of an employee, you can use this data to make your business more successful. For employees who play pivotal roles, you may elect to provide them with more resources so they can be even more productive. Pinpointing your most valuable employees could help you decide who deserves more responsibility or the opportunity to move up in the company. If you don’t recognize how valuable these employees are, you could lose them to competitors who offer bigger roles.
You may find that some employees don’t produce much compared to their salaries. By knowing this, you can figure out what the problem is and how to correct it. It could be because those employees aren’t engaged, or they may just be in the wrong roles.
How You Measure Success Depends on the Employee’s Position
While you need to measure success, this is often difficult. Besides sales, there aren’t many positions where you can simply compare the money an employee brings in to their salary. Employees in other roles contribute in a more indirect fashion. Even when you track how productive those employees are, productivity doesn’t always give you an accurate idea of value.
Programmers are an excellent example. The work a programmer does can have a huge impact on your company’s bottom line, but you can’t measure exactly how much money each programmer’s work makes you. While you could measure how many lines of code a programmer completes, that only takes into account the quantity and not the quality of the work.
Accurately Gauging What Employees Bring to Your Company
Fortunately, you can find a way to measure performance for any employee, regardless of their role. Here’s how:
- Give the employee specific, realistic goals that align with your company’s current strategy.
- Set a deadline for completion of those goals.
- Upon completion, evaluate both how long it took your employee and the quality of their work.
While there’s a subjective element to evaluating the quality of an employee’s work, this allows you to measure their success much more effectively than if you just look at the numbers. Imagine you have a social media manager and you set a goal for them to get 1,000 social media users clicking through to your business’s site within one month. They get 1,200 clicks in that month. Even though they accomplished the goal, you should also check how much these users engaged with your site. There’s a big difference between a visitor who bounces right away and a visitor who makes a purchase or shares your content.
Since different positions have very different responsibilities, employee goals and what constitutes high-quality work depend heavily on the job. It’s all a matter of finding the right goals and judging the results accordingly.
Measuring your employees’ success can seem like a full-time job in and of itself. The good news is that it gets much easier once you know what you’re looking for with each employee.