Ways to monitor employee performance

TN Hari, Head of HR at Bigbasket, said, “The pace and rhythm of performance management need to be in line with the pace and rhythm of the business.”

However, you need to monitor employee performance for this to come true. Giving the task to the employee and letting it take a turn for the better or worse is no longer an option.

This article will give you practical ways to monitor employee performance.

What is employee performance monitoring?

Employee performance monitoring refers to the strategic approach of keeping tabs on how well employees work for a business to stay on top. It’s about ensuring everyone works at their best to reach the company’s goals. But it’s a bit tricky because you have to juggle business needs with respecting employees’ privacy.

For a business to thrive, it’s important to always monitor how things are going. This means regularly checking how well different strategies are working. And for things to get better, management needs to know what’s happening right now. That’s why we pick out important indicators, called KPIs, to keep track of progress.

But is that enough nowadays? Let’s see the ways to monitor employee performance.

What is the importance of tracking employee performance?

Tracking employee performance is crucial for ensuring that both individual and organizational goals are being met effectively. It provides managers with clear visibility into how employees are performing in their roles, helping to identify high performers, underperformers, and areas where support or training may be needed. 

This clarity enables more informed decision-making around promotions, succession planning, and performance improvement strategies.

It also helps to foster a culture of accountability and transparency. When employees know their performance is being monitored fairly and consistently, they are more likely to stay engaged, motivated, and aligned with company expectations. 

Tracking performance also enables ongoing feedback, which is essential for professional development and employee satisfaction. Regular, data-driven performance discussions can help employees understand where they stand and what they need to work on.

From a business perspective, monitoring performance ensures that resources are being utilized effectively and that the organization is moving toward its strategic goals. It helps in spotting inefficiencies, recognizing skill gaps, and addressing productivity issues before they escalate. Ultimately, effective performance tracking supports better team dynamics, higher output quality, and improved overall business performance.

9 ways to monitor employee performance

1. Use employee monitoring software

It’s a smart move when you keep an eye on your team using special software. Employee monitoring software helps you see what tasks your staff tackles throughout the day. It’s not just about finding who needs a hand; it can also uncover any work piling up and boost the whole team’s productivity.

To add a dash of accountability, some software comes with leaderboards. A bit of friendly competition among your team won’t hurt.

Now, using this employee monitoring software well is crucial. Some employees worry about being watched too closely, especially since many work from home these days. A survey found that UK employees have five main concerns about this monitoring stuff:

• Invasion of personal privacy
• Trust issues
• Extra stress
• Lower morale
• Feeling pressured to work more

To tackle these concerns, employers should follow privacy rules like GDPR and highlight the positive impact these tools can have.

Flowace is an AI-empathetic helper that works wonders to keep your team on track. Want to see how? 

2. Set manual targets with 1:1s.

Take a moment with each team member to lay out goals, whether they’re individual, for the department, or the whole team. These targets aren’t just about figuring out who’s doing what; they’re a surefire way to inspire everyone.

Now, throw in some key performance indicators (KPIs) to measure productivity. These KPIs, like projects completed, overtime hours, team performance, and more, help you spot issues, check resources, and see how well things are working.

The more goals you set based on performance, the more pumped up your team will be to outdo themselves each time.

3. Ask for an update

When you’re chatting one-on-one with each team member, make sure to get the lowdown. Ask them to spill the beans on what they’ve been up to since your last chat: “What did you actually do? Did you meet the expectations we talked about?”

Weigh things in your mind and ask more questions to dig deeper. Asking for this account is the go-to move to keep folks responsible for their actions. Once you’ve got the scoop, move on to chat about what’s coming up next.

Do this regularly in your one-on-one talks, and keep tabs on how everyone’s doing.

4. Review the progress of work of employees

Keep an eye on how things are shaping up by regularly checking your team’s work. If the job doesn’t result in something tangible, just observing them in action is like keeping tabs on work in progress.

But if they’re in charge of a final product, do some spot-checks while they’re at it. For instance, if they handle a database, peek at some records. If they write reports, glance at drafts. Are phone calls on the menu?

Record a few and listen to a random bunch. Are widgets in the making? Inspect some halfway through. You can only watch some of what every employee does, but doing random checks now and then keeps things on track.

5. Watch your employees work for a while

This is one of the best ways to track their performance. Instead of relying solely on customer feedback surveys, take a few minutes to watch them in action with customers. You’ll learn more about their customer service skills firsthand.

If an employee struggles with a specific task, tag along virtually, if needed. Smartphones, tablets, and laptops offer many options, like video calls and screen sharing, to mimic being there in person.

It might seem tricky remotely, but there are ways to observe, guide, and correct work in real-time. And if all else fails, try to arrange an in-person meet-up.

6. Reward when necessary

When you see your team doing a stellar job, don’t forget to analyze and reward them. Show some appreciation and recognition, it’s like shouting, “Hey, we see and value your hard work!”

Make it a regular thing when it’s well-deserved.

This kind of recognition can boost motivation, pushing employees to maintain or even raise their standards because they know their efforts don’t go unnoticed.

7. Use 360-degree feedback for a well-rounded view

While managers often give performance reviews, 360-degree feedback takes it a step further by collecting input from peers, subordinates, and even clients. It offers a holistic view of an employee’s performance, rather than relying solely on top-down evaluations.

Because employees often behave differently in different relationships. A team member might be respectful to their manager but struggle with teamwork or collaboration. Or someone might not be very vocal in meetings but deliver incredible results behind the scenes. With 360-degree feedback, you gather diverse perspectives, which uncovers hidden strengths and flags blind spots.

8. Implement goal-tracking dashboards

Another powerful way to keep performance visible and accountable is to use a goal-tracking or OKR (Objectives and Key Results) dashboard. These platforms make everyone’s goals and progress transparent, not just for management, but also for employees and teams themselves.

Let’s say an employee has a quarterly goal to onboard 10 new clients. As they work toward it, they update the dashboard to reflect real-time progress.

These dashboards foster autonomy and ownership, employees can self-monitor their progress, adjust efforts when needed, and stay aligned with the company’s broader mission. Tools like ClickUp, Asana, Zoho Projects, or Flowace can offer custom dashboards that break goals down into manageable tasks with visual indicators.

9. Conduct regular self-assessments

Many organizations overlook the power of self-assessment, but it’s an incredibly valuable tool for tracking performance and nurturing growth. Asking employees to regularly reflect on their own work helps them:

• Think critically about what they’ve achieved
• Identify areas where they’re stuck
• Recognize patterns in their productivity and mindset

Plus, these self-assessments give managers valuable context, and you’ll better understand why certain goals weren’t met or how a person sees their own contributions.

Even better, combining these reflections with one-on-one coaching makes the conversation more constructive and personalized. Employees feel heard, and managers gain more honest insights than from performance data alone.

Tips for tracking employee performance

• Before tracking performance, make sure every employee knows exactly what success looks like in their role. Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) so there’s no ambiguity.
• Leverage tools like Flowace, Time Doctor, or Hubstaff to automatically track work hours, task activity, and productivity trends. These tools give visibility into how time is spent without needing constant manual check-ins.
• Don’t rely solely on software or metrics. Have frequent 1:1s to discuss progress, blockers, and performance. These conversations help you assess both quantitative results and qualitative feedback, plus they build trust.
• Define and monitor Key Performance Indicators (KPIs) relevant to each role, like sales closed, projects delivered, or customer satisfaction scores.
• Collect feedback from peers, subordinates, and clients in addition to managers. This gives a holistic view of an employee’s impact, interpersonal skills, and areas for improvement that might not show up in task metrics alone.
• Tools like Trello, ClickUp, Zoho Projects, or Asana help you track task completion, timelines, and collaboration. You’ll see who’s delivering consistently and who may need support, without micromanaging

How do we measure employee performance?

Let’s break down how we measure employee performance:

 Quality of the work

First up, look at the quality of their work.

• Are they delivering top-notch results?
• Meeting those performance goals?

The quality of their work sets the stage for evaluating everything else.

 Speed and efficiency

Then, there’s the speed and efficiency factor. Monitor how much they’re getting done to see how efficient they are.

Daily, monthly, or quarterly check-ins ensure they meet the requirements. Are they finishing tasks within the set time? Balancing speed and accuracy is key to any successful business.

Trust and consistency

Trust and consistency are the real deal-breakers.

• Can they handle their work independently, or do they need some guidance?
• Are they living up to the company’s values?
• Do they bring discipline and a commitment to top-notch work?

An employee’s ability to be trusted to handle their job independently is crucial. They should be able to deliver strong results without constant supervision. These metrics are game-changers when it comes to individual employee performance reviews.

Characteristics of performance monitoring

• Planning power: In organizations, a performance monitoring plan is like the playbook for planning, managing, and keeping data collection records.
• Behavior check: Keeping an eye on behaviors is a crucial part of the performance management system. This helps control and measure how everyone is doing.
• Goal harmony: aligning with the organization’s goals and objectives, performance monitoring ensures employees stay on the right track.
• Relationship boost: It’s not just about numbers—it builds strong relationships between management and employees, paving the way for efficient performance.
• Career growth: Performance monitoring isn’t just about the now; it’s a key player in career development. It opens doors for training and development, helping employees reach new heights.

Now, let’s dive into how managers play a part in this:

• They praise good performance—positive vibes all around
• When behavior isn’t up to snuff, they address it without rejecting the person
• Instead of passing judgment, they share feelings
• They value and demand integrity in both behavior and intent

This whole process is about nurturing effective employees by continually reminding them of their value to the organization. It’s like a continuous cycle of improvement and affirmation.

Reasons why you need to monitor employee goals and performance

 Efficiency check

Each employee has their own set of tasks to meet organizational goals. Regular performance checks help measure how well they’re meeting these responsibilities, ensuring consistency, and identifying areas for improvement.

 Spotting training needs

HR identifies skill gaps by tracking performance and plans training and development programs to bridge them. This ensures employees are equipped with the necessary skills, from technical know-how to soft skills like leadership and teamwork.

 Evaluating enrichment programs

After implementing training and development programs, continuous performance assessment helps evaluate their effectiveness. It’s a way to see if these programs are positively impacting and if further improvements are needed.

 Feedback loop

Regular goal monitoring enables HR to provide constructive feedback. Positive feedback fosters healthy relationships, opening channels for communication between employees and management.

 Recognition matters

Performance monitoring helps identify high achievers deserving of rewards. This transparency in the reward system builds healthy competition and motivates employees.

 Motivational boost

There’s a direct link between motivation and productivity. Performance management is a motivator, challenging employees to improve and providing a benchmark for comparison.

Appraisal time

Employees eagerly await annual performance appraisals. It’s the time when yearly performance is evaluated, influencing salary increments and shaping the salary structure for the next employment year.

 Pay structure connection

Many organizations have a performance-based pay structure. This hybrid system combines fixed and flexible pay based on individual performances. A robust performance monitoring system is essential for this pay structure to work.

 Career path decisions

Continuous monitoring helps HR decide career paths for employees. It aids in planning human resource requirements and ensuring equal opportunities for career growth.

 Talent decider

Performance is a key factor in recruitment, retention, and termination decisions. Companies value talent and will go to lengths to retain efficient employees while being decisive about parting ways with those who do not meet expectations.

 Productivity boost

Ultimately, the main goal of performance monitoring is to enhance employee productivity, leading to an overall increase in company productivity. Every employee’s performance contributes to the success of the organization.

The best tools for tracking employee performance

Why choose Flowace for measuring employee performance?

Flowace is an AI powerhouse that has amped up the productivity of 36,763 users by a whopping 31% in just 89 days. And the best part? It does this without adding any extra workload to users.

It’s not just about numbers; Flowace.ai is like your productivity cheerleader. It proactively engages with users and managers, motivating them to achieve more while maintaining a healthy work-life balance.

Flowace helps companies spot the real MVPs—those individuals and teams genuinely putting in the effort, focusing their time on the right apps and URLs, and consistently delivering top-notch performances.

• Bias-free appraisals: With performance data at its core, Flowace eliminates bias from the yearly appraisal process. It ensures fairness and accuracy in evaluating employees.
• Moonlighting prevention: Say goodbye to moonlighting concerns. Flowace lets you implement extra working day policies with configurable remuneration, ensuring everyone plays by the rules.
• Actionable insights: Flowace doesn’t just point out issues; it provides actionable insights. From addressing process inefficiencies to tackling repetitive trends, idle periods, non-focus time, and distractions, it’s got your back.

Interested? Book a demo to know more!