How to improve employee performance

Improving employee performance is an ongoing process that requires time and effort from both management and workers to create a supportive and productive environment. 

However, this is easier said than done. 81% of HR leaders are implementing changes to performance management, yet they remain uncertain about the impact. This shows a clear gap between implementing new strategies and achieving measurable results. It also highlights the need for more effective solutions.

Addressing this gap requires a deeper understanding of employee training needs, clear performance metrics, and tools that align with organizational effectiveness goals.

This article covers nine steps to improve employee performance, how to measure it, calculate metrics, and conduct performance reviews. 

What is employee performance? 

Employee performance shows how well employees do their jobs and meet company goals. It considers work quality, speed, and how closely an employee matches expected results.

Key factors influencing performance include skills, knowledge, motivation, and work environment. Companies measure performance through metrics such as employee productivity, accuracy, punctuality, and task completion rates.

For example, sales staff may be assessed based on revenue generated, while customer service roles might focus on response times and satisfaction ratings.

Clear instructions and regular feedback help workers understand what they need to do. Managers track progress using tools like performance reviews, input from coworkers, and specific work targets. 

When someone struggles, it could mean they need more training, clearer instructions, or help solving workplace problems. Strong, consistent performance helps the whole company succeed. Spotting and fixing performance issues keeps teams working smoothly.

What you’ll need

In this section, we’ll discuss exactly what you need to improve employee performance. Think of this list as the foundation for creating an environment where employees can thrive and perform at their best.

• Right work tools: Workers need up-to-date equipment and software to do their jobs well and meet company expectations.

• Clear company goals: Understanding the big picture helps employees connect their work to broader company aims.

• Strong leadership support: Managers must guide teams, give helpful feedback, and communicate clearly to improve performance.

• Fair task distribution: Spreading work evenly prevents exhaustion and allows everyone to show their skills.

• Growth opportunities: Seeing potential career paths encourages workers to learn and stay dedicated to the organization.

How to improve employee performance in nine steps 

Now that you have a better understanding of employee performance, it’s time to examine nine simple ways of improving it. 

Employee engagement increases productivity. Engaged employees outperform disengaged employees, and companies with high employee engagement are 21% more profitable.

Remember that a holistic approach is key. Addressing tools, leadership, workload, goals, and growth opportunities create a supportive and productive environment. 

Let’s take a look at how to improve employee performance in nine easy-to-follow steps: 

1. Identify the root cause of underperformance 

Identifying the root cause of underperformance begins with observing patterns and gathering relevant data. First, look at how people do their jobs, what might stop them from working well, and why they might struggle.

Talk to workers privately and ask what makes their job hard. Is the issue tied to unclear expectations, skill gaps, or talent shortages? Hold private, judgment-free conversations with employees to understand their challenges. 

Then, check the completed work and see the numbers showing what employees accomplish. See if there are patterns that explain why someone might not be doing their best. 

After understanding the real problems, create specific ways to help workers get better and consider what each person needs to succeed.

2. Address strengths and areas for improvement 

Helping workers improve starts with a fair, personal approach. First, point out what they do well. Celebrate their strengths to boost confidence and encourage good results. Try to use clear examples of their best moments.

When discussing areas to improve, be kind and specific. Explain the gap between what they’re doing and what the job needs. It is important to focus on actions, not personal qualities.

Then, work together to set realistic goals. They may need to learn critical employee skills or change how they operate. Offer help, such as on-the-job training or finding an in-house mentor.

Check employee’s progress regularly and offer encouragement and helpful advice. This keeps them motivated to grow and reach their full potential. 

3. Offer consistent and ongoing feedback

Giving helpful feedback happens all year, not just during annual reviews. Share input often to help workers understand what they’re doing well and where to improve.

Be clear and specific about actions, not personal qualities. Talk about real work examples and make feedback a conversation where employees can share their thoughts.

Discuss both good work and areas needing attention. Explain exactly what’s working and what needs change. This helps build trust and helps workers stay on track.

Regular feedback prevents small issues from becoming big problems, and workers feel supported and know how to keep improving.

4. Build a supportive and positive workplace culture 

Building a supportive and positive workplace culture starts with promoting respect, trust, and open communication. Promote cooperation and use collaboration technology where employees feel safe to share ideas and challenge each other constructively. 

Recognition plays a significant role—regularly acknowledge accomplishments, both big and small, to boost morale. Create an environment where feedback is welcomed, not feared, and everyone feels valued. Encourage work-family balance, ensuring employees aren’t overwhelmed or burned out. 

A positive culture prioritizes inclusivity, ensuring diverse voices are heard and respected. When employees feel supported and motivated, their performance naturally improves, and they’re more likely to stay engaged.

5. Emphasize learning and development opportunities 

Flourishing at work helps both employees and businesses. Companies can support employees by offering learning and development opportunities that match their career goals.

Provide unexplored ways for people to learn new skills. This could include online training software, workshops, or programs that teach leadership skills. Make sure everyone can join these learning opportunities, no matter their job or skill level.

Help workers learn through different methods, such as online courses, hands-on training, or finding a mentor to give advice. When people feel they’re getting better at their jobs, they are more engaged and motivated.

Learning new skills is good for everyone, from top-level executives to warehouse workers. Employees feel more confident, and companies get people who can do more and adapt to changes. 

6. Establish clear, measurable, and achievable goals 

Setting work goals helps people stay focused and motivated. Matching personal goals with what the company wants to achieve helps give your work more meaning.

Make goals clear and measurable. Instead of saying, “Do better,” say something like “Increase sales by 10%” or “Finish project on (X) date.” You can even break big goals into smaller steps. This makes big tasks feel less daunting and more doable.

Once your goals are clear, make sure they are realistic. Consider the time and resources you have because you’ll want to feel confident you can meet these goals.

Lastly, check your progress regularly. If something isn’t working, it’s okay to adjust your goals. This approach helps employees know exactly what to do and feel positive about their achievements.

7. Celebrate accomplishments and progress regularly 

Celebrating achievements and progress is crucial for maintaining morale and employee motivation. Acknowledge individual and team achievements, whether hitting a target, completing a project, or overcoming challenges. 

You don’t need big, expensive celebrations. A quick shout-out in a meeting or a thank-you note can mean a lot. Celebrate progress throughout a project, not just at the end. This keeps everyone excited and working hard.

When people feel their work matters, they stay motivated. Saying things like “great job” helps workers feel proud and want to keep doing their best. Simple recognition goes a long way in making people feel valued at work.

8. Enhance job satisfaction and employee engagement 

Enhancing job satisfaction and employee engagement involves creating a work environment where employees feel valued and fulfilled. 

Listen to what motivates your team and talk to them directly about what they enjoy and what challenges them. Give people work that matches their skills and interests. This helps employees take charge of their tasks and make decisions.

Build team connections through fun activities and group projects. It will support a friendly workplace where people feel they belong.

Check how workers are doing and ensure they’re not getting too stressed or overworked. Employees who feel happy and supported are more likely to produce high-quality work and stay committed to their roles.

9. Take decisive action when progress is lacking 

Taking decisive action when progress is lacking is crucial for maintaining performance standards. First, revisit the root causes of underperformance and ensure clear goals and expectations are in place. 

If progress stalls have a direct conversation to discuss their specific employee training challenges. Identify any skill gaps or external factors that may be affecting their performance. Provide additional support or training if necessary. 

Set a clear timeline for improvement and establish follow-up meetings to track progress. If, despite support, there’s no improvement, it may be time to reassess the role or consider alternative solutions for both the employee and the organization.

How to measure employee performance

Now that you know how to improve employee performance, it’s time to examine how it’s measured. 

Understanding how employee performance is measured provides clear benchmarks for success, helping both employees and managers assess progress and identify areas for development.

Let’s take a closer look: 

Speed and efficiency

Employee performance can be measured by the speed at which tasks are completed and the efficiency with which resources are used. This includes how quickly an employee meets deadlines, handles multiple tasks, and minimizes unnecessary steps in their processes. High performance in this area typically results in greater output within a given timeframe.

Quality and depth

Quality and depth measure how well employees perform their tasks with attention to detail and thoroughness. It includes the accuracy of their work, their ability to solve problems deeply, and the standard of output they deliver. This measure ensures the job is completed to the highest possible standards.

Trust and consistency

Trust and consistency reflect how reliably an employee performs over time. This includes their ability to meet expectations and maintain performance standards without constant supervision. Trust is built when employees demonstrate reliability, accountability, and follow-through on commitments, contributing to a stable and predictable work environment.

How to calculate employee performance metrics

Now, it’s time to learn how to calculate employee performance metrics. 

This section will break down the key methods used to assess productivity, quality, and efficiency. It will provide a clear framework for accurately evaluating individual and team contributions.

Let’s take a closer look: 

Revenue per employee

Revenue per employee is a metric that measures the financial output each employee generates. It is calculated by dividing total revenue by the number of employees. This figure helps assess overall workforce productivity and can highlight whether a company is optimizing its human resources. High revenue per employee suggests efficient utilization of talent.

Absenteeism rate

The absenteeism rate measures the frequency of employee absences, excluding vacations and holidays. It’s calculated by dividing the number of absent days by the total workdays. A high absenteeism rate often signals disengagement, health issues, or poor work culture. It can negatively impact team productivity, making it a key indicator of employee wellness.

Net Promoter Score (NPS)

Net Promoter Score (NPS) gauges employee satisfaction and loyalty by asking how likely they are to recommend the company as a workplace. It’s measured by the responses to a simple survey that categorizes employees into promoters, passives, or detractors. A high NPS reflects strong employee engagement. This typically correlates with better performance and retention.

Role-specific KPIs

Role-specific KPIs (Key Performance Indicators) focus on measurable outcomes directly tied to an employee’s job responsibilities. These metrics vary by role—sales targets, customer service response times, or project completion rates are examples. Relevant KPIs help align individual performance with company goals and offer actionable data to guide development.

Learning and development metrics

Learning and development metrics assess how effectively employees are improving their skills. Common indicators include training program completion rates, employee progress in skill mastery, and the impact of training on job performance. These metrics help determine if the investment in training leads to measurable improvements in job capabilities.  

How to evaluate employee performance

Measuring employee performance metrics focuses on quantifiable data, like revenue or attendance, while evaluating performance looks at overall job effectiveness and behavior. 

Knowing the difference is important because metrics give clear data, while evaluation helps understand how employees contribute to the team and company culture.

Let’s take a look at how to evaluate employee performance: 

360-degree Feedback

360-degree feedback gathers responses from various sources, including the employee’s manager, peers, subordinates, and sometimes customers. This approach offers a well-rounded view of an employee’s performance, highlighting strengths and pinpointing areas for development. It encourages open communication, promotes self-awareness, and provides valuable insights from different perspectives. 

Objective-based performance

Objective-based performance evaluation focuses on whether employees meet specific, measurable goals aligned with the company’s objectives. These goals are clear and achievable, making it easier to track progress over time. Regular check-ins help employees focus on their targets and allow managers to offer feedback if unmet goals are met. 

Adapted SWOT analysis

An adapted SWOT analysis is a framework that helps assess an employee’s performance by looking at four key areas: strengths, weaknesses, opportunities, and threats. By identifying strengths, managers can reinforce and build on what the employee already does well. Recognizing weaknesses allows for targeted development plans to address skill gaps. 

Performance scales

Performance scales evaluate employees using a range of ratings, often from poor to excellent, based on specific criteria such as productivity, quality of work, and teamwork. These scales provide a structured way to assess performance consistently across employees. Each rating level is clearly defined, making it easier for managers to evaluate how well an employee performs in various areas. 

Wrapping up: Key steps to boost employee performance

Improving employee performance requires a holistic approach and consistent effort. A clear communication strategy will help employees understand expectations, receive timely feedback, and feel supported.

Managers must provide the right tools and set clear goals to encourage employee development. They must also create a supportive work environment where employees feel valued and have opportunities for growth. 

Recognizing accomplishments, big and small, helps keep employees motivated and engaged. Training and learning opportunities show that the company is invested in its development. 

Improving performance with measurable goals in mind helps both managers and employees stay on target. Focusing on these steps means organizations can create a positive, high-performing workplace that supports individual and company success.