Employee Performance Definition, Indicators and Factors That Influence



Techgue | Employee performance is an inseparable part of the scope of the organization or company, and all parties involved in the company. Employee performance also plays an important role as a reference in assessing employee quality in order to maintain the productivity of all employees working in the company. 

If an employee's performance is considered good, then the employee is entitled to receive appreciation or other forms of reward from the company. So, what is meant by employee performance? What are the indicators and factors that influence an employee's performance ? Let's look at the complete review below!

Understanding Employee Performance

Employee performance is a measure of the extent to which an employee has succeeded in achieving the goals and standards set by the company or organization where they work. Employee performance can also be interpreted as the results achieved by an employee in carrying out his duties and responsibilities in the organization.

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Employee performance is the ability, skills and work results demonstrated by an employee in carrying out his duties and responsibilities at work. Employee performance can be measured through achieving predetermined targets, work productivity, quality of work results, and quality of work in a team.

Types of Employee Performance

There are several types of employee performance that can be measured and analyzed, including:

1. Quantitative Performance

Quantitative performance is a type of employee performance that can be measured with data and numbers, such as the number of products produced, number of sales, or targets that have been set. Quantitative performance is very important for companies because it can provide an overview of the extent to which employees are able to achieve predetermined targets.

Example: An employee succeeded in producing 100 units of product in one month, while the target set by the company was 90 units of product.

2. Qualitative Performance

Qualitative Performance is a type of employee performance that is measured based on the quality of the work produced, such as customer satisfaction, product quality, or innovation that has been carried out. Qualitative performance is very important for companies because it can provide an overview of the extent to which employees are able to provide added value to the products or services provided.

Example: An employee succeeds in improving the quality of the products produced so that he gets praise from customers and receives many new orders.

3. Individual Performance

Individual performance is a type of employee performance that is measured individually based on the duties and responsibilities carried out by the employee. Individual performance is very important for a company because it can provide an overview of the extent to which employees are able to complete their duties and responsibilities well.

Example: An employee successfully completes his duties well, such as meeting predetermined sales targets or completing a project on time.

4. Team Performance

Team performance is a type of employee performance that is measured based on teamwork and contribution to achieving common goals. Team performance is very important for a company because it can provide an idea of the extent to which employees are able to work together with their team members.

Example: An employee successfully collaborates with his team members to complete a project effectively and on time.

5. Potential Performance

Potential performance is a type of employee performance that measures an employee's potential to develop and improve their performance in the future. Potential performance is very important for companies because it can provide an idea of the extent to which employees are able to develop and provide added value to the company.

Example: An employee shows an interest and ability to learn new skills that can help improve his or her performance in the future.

Employee Performance Indicators and Explanations

Employee performance indicators are a tool to measure the extent to which employees have achieved company goals and how employees contribute to the company's success. The following are several employee performance indicators and their explanations:

1. Quality of Work

Work quality measures the extent to which employees are able to do their work well and in accordance with established standards. Work quality indicators include timeliness, accuracy in completing tasks, and the quality of the work produced.

2. Work Productivity

Work productivity measures how efficiently employees do their work and how much output employees are able to produce in the specified time. Work productivity indicators include the amount of production or sales, the number of tasks completed in the specified time, and efficiency in the use of time and resources.

3. Work Attendance

Work attendance measures how often employees are present at work according to the established work schedule. Work attendance indicators include absenteeism, tardiness, and leave taken.

4. Work Discipline

Work discipline measures how obedient employees are in following the rules and procedures set by the company. Indicators of work discipline include compliance with work schedules, work safety rules, and procedures for using work tools or equipment.

5. Teamwork

Teamwork measures how well employees work together with other team members to achieve common goals. Indicators of teamwork include communication skills, the ability to solve problems together, and the ability to contribute to achieving team goals.

6. Innovation

Innovation measures how creative and innovative employees are in providing new ideas to improve company performance. Innovation indicators include the ability to think creatively, the ability to create new ideas, and the ability to apply new ideas in daily work.

Factors that Influence Employee Performance

There are several factors that can influence employee performance in the workplace, ranging from motivation, environment, career, to compensation. It is important for a company not to ignore the needs of these employees, so that the performance of each employee remains good. 

The following are several factors that influence employee performance, as reported by bacaberita, including:

1. Work Motivation

Work motivation is a very important factor in improving employee performance. Motivated employees will work harder and be more productive. Work motivation can come from within employees or from outside, such as recognition, appreciation, and opportunities for development.

2. Work Environment

A good work environment can improve employee performance. A comfortable, clean and safe work environment will make employees feel comfortable and more focused in doing their work. Apart from that, a work environment that is friendly and full of togetherness can also increase employee work motivation.

3. Leadership

Good leadership can also influence employee performance. Effective leadership can provide clear direction, motivate employees, and build good working relationships between employees and superiors. Conversely, poor leadership can make employees feel uncomfortable and unmotivated to work.

4. Career Development

Career development is an important factor in improving employee performance. Employees who have the opportunity to develop their skills and careers will feel more motivated to work and better prepared to take on greater responsibilities.

5. Incentives and Compensation

Fair and adequate incentives and compensation can also influence employee performance. Employees who feel appreciated and given proper recognition for their work will work harder and be more productive.

6. Company Policy

Company policies can also affect employee performance. Fair and consistent policies will make employees feel valued and motivated to work. On the other hand, unclear or unfair policies can make employees feel uncomfortable and unmotivated to work well.

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