25 Employee Performance Metrics You Must Know

Proactive insights must evaluate companies’ success in constantly changing data. These performance metrics serve as gauges of the business’s performance.

However, collecting the correct data at the right moment is a challenge for firms. Delays in information almost always lead to performance loss.

Proactive and actionable information is what businesses need as soon as possible so that improvements can be made.

Automation and business intelligence tools are essential for gaining a thorough insight into the organization’s internal workings. For performance evaluation, executives must be aware of the most significant data trends emanating from their industry.

An example list of the 25 metrics used to gauge a company’s performance is shown below:

Employee Performance Metrics

Monitoring an organization’s operations to make sure that personnel achieves predetermined goals and objectives is called performance management.

Data points used in performance management metrics show whether a business is on pace to meet its objectives, including key performance indicators (KPIs) for personnel.

This includes both overall and individualized performance measures that the HR department uses to monitor the effectiveness of the company’s performance management programme.

1. Total Revenue

The company’s annual, quarterly, and monthly revenue should be measured precisely. Businesses also monitor and calculate daily revenue.

Your target and actual income discrepancies can give you essential information about where you can improve. The revenue characteristics by geographic areas, products, and sports teams, among others, are crucial for analysis.

2. Average Customer Acquisition Cost

The costs associated with acquiring new customers include marketing and labor costs. The ratio of customer acquisition costs to the total number of customers acquired in a specific period is the average customer acquisition cost.

Your company can determine cost-effectiveness by breaking down the costs into percentages. Example: In 2016, the average cost of obtaining a new customer was $2,500, up from $2,200 in 2015.

3. Conversion Funnel

The conversion funnel may include information about the overall number of qualifying leads, delivered bids, ongoing discussions, and open opportunities over time.

When assessing the effectiveness of the sales teams, the ratio of deals won to lost is useful. For targets, the examination of conversion funnels for each month and their conversion rates and overall worth are crucial.

4. Total Customer Number and Lifetime Value

An essential metric for determining the trajectory of a firm is the total number of customers and their lifetime values.

The lifetime value forecast is created based on current client deals, customer retention rates, and probabilistic projections of upcoming purchases.

Based on these criteria, the goal is to identify a company’s most valuable clients. The number of clients the business gains or loses is a good gauge of its performance.

5. Customer Attrition Rate

The loss of customers for a business is measured by the customer attrition rate. The attrition rate of a company’s customers is crucial to its overall performance. Getting a new customer costs more than keeping an old one.

Higher customer turnover rates typically indicate that the company needs better customer service. To increase customer retention, management can take proactive steps, distribute surveys, and engage with customers to determine customer satisfaction levels.

6. Average Deal Closing Time

Products and services have the shortest shelf lives ever. It’s critical that sales staff close deals swiftly and efficiently.

How quickly does your team close deals? How many days do contracts with your clients typically take to negotiate?

What element can expedite contract closing? And with the right resources, many of these solutions may be found. As an illustration, the average time to close a deal in 2016 was 31 days, compared to 35 days in 2015.

7. Customers Who Owe Balances On Their Accounts

Tracking the unpaid balances owed by consumers is a task for top management and executives.

Large unpaid balances affect an enterprise’s ability to operate. To expedite matters, an automated list of the current month’s or quarter’s unpaid balances can be delivered to the management team. If clients fail to respond, they may additionally take the action item for nonpayment.

8. Purchasing Expenses

What are the monthly fees associated with purchasing? What equipment must be bought? Business procurement expenditures need to be continuously monitored.

Operational and capital expenses and current and fixed asset costs can significantly affect a company’s bottom line.

A robust supply chain management system can help you keep tabs on your procurement expenditures.

9. Staff Turnover And Retention

What are the costs associated with replacing your staff? How many of your employees are kept on each year? Statistics on employee turnover and retention are crucial for effective project management.

The worker retention rate is crucial to the company’s confidence and long-term prospects. For instance, the worker retention rate in 2016 was 93%, compared to 88% in 2015.

10. Time And Staff Performance

What is your staff’s overall evaluation? How many hours, on average, do they spend on projects and tasks? Policy decisions can be based on the criteria for staff performance. Based on performance indicators, downsizing decisions might be made.

Automated performance analysis is beneficial for consistency as managers continually push for better employee performance. Payroll and HRMS software can offer detailed analytics on employee performance.

11. Marketing Costs And ROI

How much money does your business invest in marketing? Which media are used for promotions?

How efficient were your marketing efforts in terms of ROI and conversions? A corporation can fine-tune its message to its clients with marketing expense spend research and successful ROI from various channels. How many clients does the business gain for every $10,000 spent on marketing?

12. Income Per Worker

The income per employee indicates the effectiveness with which personnel are utilized. It is calculated by dividing the company’s overall income by the number of active employees.

The more money a corporation makes per employee, the greater trust its stakeholders have in it. For instance, in 2016, the average revenue per employee was $55,000. In 2015, it was 53,000.

13. Profit Per Worker

Another indicator that indicates a company’s efficiency is its profit per employee. It is calculated by dividing the organization’s total earnings after taxes by the number of active employees. The business’s promise and potential can be seen in its earnings per employee.

A company’s growth is shown positively by a more significant profit per employee. Additionally, it implies that the business has a solid specialty.

14. Investing Money

A company’s financial health needs to be proactively assessed. Current Assets – Current Liabilities represents working capital.

The current assets to current liabilities ratio, or working capital ratio, shows whether a business can pay off its short-term debt. When this ratio is less than 1, the working capital is negative. Anything greater than 2 suggests that the business is not investing surplus assets.

15. Cost Per Employee On Average

What is your company’s average cost per employee? What is the cost of replacing your current employees? When a corporation plans its operations, the cost of its staff is crucial. One of the direct expenses for businesses is staff costs, perks, and compensation.

16. Total Customer Complaints

A company’s service levels are crucial for retaining customers and creating cross-selling opportunities.

The overall amount of client complaints indicates the company’s a product/service quality and flaws. A large number of complaints usually causes concern for management.

17. A Typical Reaction Time

How quickly do you typically respond to client complaints? The most diminutive possible time frame must be used to resolve a customer issue.

The management can monitor customer escalations and gauge how quickly concerns are addressed. This measure is crucial for measuring customer satisfaction levels. Nowadays, most firms seek to reply to clients within minutes.

18. Average Resolution Time

The quality of the services customers receive closely correlates with their levels of customer satisfaction. Top leaders constantly pay close attention to customer analytics.

The most crucial indicator for resolving customer complaints is likely the average resolution time. In 2016, it took 1.31 days on average to resolve consumer complaints, compared to 1.5 days in 2015.

19. What Does Your Average Customer Rating From Your Clientele Look Like?

How satisfied are your clients? A company’s greatest assets are its happy customers. A company’s average rating is an essential factor for assessing the services offered to clients. In today’s highly competitive market, businesses strive for excellent ratings.

20. Average Price To Resolve A Client Complaint

Customer escalations can be expensive to resolve. To control costs, businesses must be able to identify product/service flaws as soon as possible.

Early bug detection and tracking are crucial. The cost of fixing the fault increases with the delay in its discovery. A company’s reputation is jeopardized, and dealing with client complaints costs a lot.

The support team, the technical team, the customer representatives, etc., all contribute to the average cost of resolving a customer complaint. Example: In 2016, the average cost to resolve a customer issue was $721, up from 650 in 2015.

21. Positions’ Response Rate

How successfully a company can recruit talented people will determine how quickly it grows. A business typically wishes to receive many applications for open positions.

The response rate is calculated as the ratio of the total number of applicants to the number of open positions multiplied by 100. To have a top-notch team, businesses must monitor the response rate.

22. Net Promoter Rating

How many clients will tell their friends and family about your company? The net promoter score is determined on a scale of 0 to 10. Detractors, passives, and promoters are the three categories of customers. The score breakdowns are as follows:

a) 0–6: Negatives
b) 7-8: Passives
c) 9–10: Advertisers

(Number of promoters minus Number of detractors) / (Total Responses) X 100 is the net promoter score.

Imagine that out of 100 respondents, 30 were Detractors, 10 were Passives, and 60 were Promoters. NPS=(60-30)/100 x 100. NPS is 30, which is excellent for your company. NPS can also be low, which indicates dissatisfied clients.

23. Total Number Of Client Orders Or Projects

How many projects is your organization now working on? How many pending customer orders are there? How many projects can your business take on at once to guarantee optimal delivery? All of these indicators are necessary for the projects to be successfully completed.

The figures should not be very high or low. These numbers must be watched for smooth operations, and executives must have real-time access to information.

24. Operation And Facility Costs

What are the monthly expenses for your company’s buildings and operations? What continuing costs and expenditures are necessary for your firm to run efficiently?

All these expenses and associated initiatives are crucial to have the appropriate working capital. Highly high overhead costs can harm the long-term health of a corporation.

For optimal operation, a frequent examination of the expenses and their characteristics is required.

25. Income Or Loss

A business’s primary goal is to maximize value for its stakeholders, be they customers, employees, investors, or shareholders.

Keeping track of a business’s monthly run rate and calculating earnings or losses is crucial. The executive team must closely monitor the measurements of profit or loss.

Through regular reports and technological solutions, all factors that affect profit or loss should be listed, and appropriate measures should be suggested.


The BPA tool is one of the most crucial elements of modern business management. These tools can update graphs and information by corporate priorities and be tweaked to present a visual summary of essential performance indicators.

Executives need to be aware of the most critical aspects of their business as soon as possible; more than static reports and data is required. Additionally, executives are now supplied with critical information based on emerging patterns.

The executives can log into the system to find information. The system should proactively send executives information about the dynamic correlation of data to corporate goals, identification, and corrective measures for undesirable tendencies.

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