business.com receives compensation from some of the companies listed on this page. Advertising Disclosure

Home

7 Tools to Measure Employee Performance

Sean Peek
Sean Peek
business.com Contributing Writer
Updated May 13, 2022

The best employee performance measurement software can help you analyze your team members' performance and engagement.

As a business owner, you must track employee performance to ensure your team progresses on projects and spends company time efficiently. Managers and leaders who notice the quality of a specific employee’s work is dropping can use employee performance tracking software to identify gaps in understanding and resolve the disconnect. 

Establishing an employee performance process and tracking the results can get to the core of any workflow issues while holding their teams accountable for their assignments each day. Discover seven tools below that measure employee performance and the benefits of using such software.

What are employee performance measurement tools?

Employee performance measurement tools analyze employee performance and engagement against key metrics. You can use these tools to identify areas for improvement and address any productivity concerns you find. These tools typically take the form of computer software purchased from third-party vendors. The platforms contain features like goal setting, recordkeeping, and data analysis, which you can use to evaluate the performances of individual employees as well as entire teams. 

TipTip: The best tools for setting and tracking goals are also good solutions to manage employee performance.

Employee performance measurement tools are more useful than ever as many businesses embrace remote work. Instead of walking around the office and checking in with your employees in person, employee performance management tools automate this process for remote leaders by collecting data such as time spent on a project, idle time, time in a document and more. You can then use that information to assess an employee’s performance and give feedback. [Read related article: How Informal Feedback Can Improve Employee Performance]

What are the top employee performance measurement tools?

Interested in tracking your employees’ performance? Explore seven of the best employee performance tools on the market to find the perfect fit for your company’s needs.

Basecamp

Basecamp is a great tool for those with remote teams who’d like to keep track of employees’ tasks and performance. The Basecamp software organizes everything in one place, and you can see your employees’ progress on assignments in real time. Additionally, it provides an overview so managers can see what each employee plans to work on for the day – and if they completed their list by the end of the workday. This eliminates unnecessary communication between both parties and empowers your team to manage their own workload.

DeskTime

DeskTime is a time-tracking app for businesses and freelancers, but it is especially helpful for business owners looking to measure employee performance. This tool allows managers to monitor employees’ time on specific projects and label different apps as productive, unproductive and neutral. Imagine being able to know how much time a worker may have wasted on Facebook instead of completing an assigned task. [Learn how to filter web content for employees.]

Additional DeskTime features include URL and app tracking to see what websites and applications employees visit, document-title tracking to check the documents they’re spending time in, idle-time tracking to understand how much time they spend away from their computer, project-time tracking to determine the amount of time they’re taking to complete certain projects, and automatic screenshots to check for suspicious activity. 

FYIFYI: The best time and attendance software can also shed light on employee performance by tracking when staffers clock into work and how productive they are.

Trello

Trello is a work and project management tool that organizes projects into different columns on different boards. This tool helps visualize workflow and ensures each member of your team stays up to date on project progression. Leaders can create monthly or weekly to-do lists for each employee, cards for specific projects to track progress, and columns for different phases of each project. By adding users to project cards and automating processes, teams have a defined picture of what they’re working on and when they should work on it. Additionally, the notification feature allows employees and management to communicate on their own terms rather than sending messages back and forth via email or another messaging platform.

iDoneThis

iDoneThis is a collaborative tool companies can use to keep track of employees’ performance and projects. At the close of each workday, employees respond to an email reminder with all the details of what they’ve accomplished that day. The next day, the entire team receives a digest including everyone’s work from the day before. This keeps each employee and their respective managers on the same page while empowering them to monitor their own performance. Workers will also feel more accountable for their work, knowing they’ll share their progress each evening. Furthermore, when everyone is in the loop on everyone else’s performance and achievements, team members are more motivated to do their share of the work.

Monday.com

This employee workflow tool allows managers to create tasks in different categories and rate each as high, medium or low priority. Leaders can assign these tasks to specific employees, who update the status of their progress as they go along. Project updates include “working on it,” “complete” or “stuck,” the last of which communicates to leaders they need assistance. In addition, monday.com offers forms to collect information from employees about their progress, opinions and any feedback they have. You can learn more in our full review of Monday.com.

IntelliHR

This software  is a performance management tool that continuously tracks employee performance using people analytics. The software creates a performance summary dashboard for each worker, displaying tracked goals, training initiatives and achievements. Through intelliHR, managers can automate employee review cycles,  reducing recency bias and manager burden. The data provided paints a clear picture of each team member’s performance, making it obvious when a performance improvement plan is needed or when an employee should be rewarded.

PerformYard

PerformYard streamlines performance management strategies. The tool allows every employee to participate in performance management with features like 360 reviews, project-based reviews, rating scales, continuous feedback and cascading goals. Employees can focus on the feedback they receive within the application, which facilitates better communication with HR teams and managers.

Did you know?Did you know? Highly rated employee monitoring software is another useful way to track how staffers spend their time during the workday.

What are the benefits of employee performance measurement tools?

Tracking employee performance can improve manager and employee relations by increasing transparency and ensuring every member of a team stays on the same page. The following are specific benefits a company reaps when using employee performance measurement tools.

Identifying areas for improvement

There’s always room to improve for every employee. By tracking different employee performance metrics with custom tools, leaders can identify areas where a team member falls short and strategize a solution to address any issues. For instance, if you discover an employee is spending too much time on written projects, you can work with them to find ways to increase their efficiency or choose different assignments in which they’ll thrive.

Understanding your ROI

Your return on investment (ROI) for each employee should stay high, meaning your investment in them is cost-effective for your team and business. If a team member takes too many breaks and doesn’t produce quality work, this may indicate a lower ROI, which requires you to make some adjustments. Tie in productivity metrics with your overall revenue – factoring in how much you pay each employee – to determine how much value their employment provides your company. 

FYIFYI: Using employee performance measurement tools to evaluate team member performance will help ensure you’re properly compensating each employee for their work and performance.

Empowering employees

If an employee is aware managers monitor their activity, they’ll feel more motivated to work efficiently. However, you don’t want this motivation to come from a place of fear, nor do you want team members to feel like they’re being micromanaged with constant audits of their time. Rather, workers who know their performance will regularly be evaluated should be empowered to work toward specific goals within the company. Be transparent with your employees about the performance measurement tools and strategies you use so no one feels exploited or caught off guard. 

Balancing strengths and weaknesses

Employee performance measurement tools help identify different employees’ strengths and weaknesses. As a business owner, you should understand where specific workers thrive and where they don’t. This information will allow you to delegate tasks accordingly and balance the team’s strengths and weaknesses so everyone feels confident in their work. It can also help you identify gaps in your workforce and indicate when it would be advantageous to bring on additional staff.

Image Credit:

Fizkeys/Shutterstock

Sean Peek
Sean Peek
business.com Contributing Writer
Sean Peek has written more than 100 B2B-focused articles on various subjects including business technology, marketing and business finance. In addition to researching trends, reviewing products and writing articles that help small business owners, Sean runs a content marketing agency that creates high-quality editorial content for both B2B and B2C businesses.