Employee performance is crucial to organizations. If employees do not perform well, they put their teams, departments, and companies at danger. However, many employers still struggle with the right way to measure and improve their employee performance.

In this article, you will learn how HR Professionals define employee performance, how they most commonly measure it, and biggest influences on employee performance. Most importantly, you will find out how you can increase employee performance in your organization!

🎯 Before you continue, check out our Recognition and Rewards Solution Buyer’s Guide to implement employee appreciation best practices in your entire company – and see your employee performance rise.


Simply put, employee performance is an indication of how employees fulfil their tasks. Employee performance has several dimensions – quality, quantity, efficiency, and consistency. It is closely related to employee productivity, although these two terms are not quite the same.

Naturally, it is in companies’ interest to enhance its employees’ performance. In order to improve it, employee performance should first be measured. Here are the top four ways to grasp how well your employees are performing. Read more about headless csm.


Is the work your employees complete of high quality? Are employees putting maximum levels of effort into their work? Are their goals and KPIs met?

These are the questions that can help you determine the quality of your employees’ performance.


It is good when employees focus on the quality of their work – but as long as that work is completed on time. This is why you need to track if goals are being met on time, and help your employees increase their output if not.


Efficiency could be perceived as an intersection of quality and quantity. If employees produce high-quality work in minimal time frames, it proves that they are very efficient in what they do.

However, the optimal employee performance does not equal burdening your employees with too much work despite their efficiency – everybody needs some time to rest.



Do employees consistently perform their work well, or do you see significant highs and lows throughout the week, month and year? Pay attention to this aspect of performance, as it could help you conclude what impacts your individual employees’ performance the most.

6 Biggest Influences on Employee Performance

Grasping employee performance is complex. It is composed of various factors that have different weight for different employees. However, if you do not know what influences your employees’ performance, it will be hard to optimize it.

🎯Employee surveys are useful tools in finding out what drives your employees to do their best, as well as in detecting potential challenges. Browse through the most revealing employee survey questions and find out what your employees really think.

Here are the biggest influences on employee performance.

Knowledge, experience, & skills

Naturally, one of the biggest influences on employees’ performance are their knowledge, experience, and skills they already possess. Employees without any of these three will most likely perform poorly.

This is exactly why it is crucial to offer training to employees that are advancing to more demanding roles. Moreover, it shows the value of hiring the right candidate for the job.


When employees are not motivated to do their job, their performance will naturally be lower. Luckily, there are many ways to motivate employees.

Some employees will be more extrinsically motivated – by salary, for example – while others are intrinsically motivated: they just love doing what they do. However, employee motivation is a complex issue itself – so jump to our next chapter to find out how to motivate employees, and thus enhance their performance.

🎯Find out how to boost your employees’ motivation with these ten tricks.

Health and wellness

Did you know that mental and physical health are “found guilty” for 84% of direct, and 93% of indirect losses in productivity? Imagine the effect this has on employees’ performance!


However, there is a lot of talk about both mental and physical health in the workplace, especially after COVID-19 pandemic.

Psychological resilience

In order to maximize their performance potential, employees need to build psychological resilience. In 2021, 40% of US employees reported their jobs were extremely or very stressful.

Although employees must learn to cope with stressful situations better, employers should ensure that those situations are reduced to a minimum.

Ability to work well in a team

In an interconnected world like ours, efficient collaboration and communication are crucial for businesses. As employers are seeing benefits of collaboration, they are looking for employees that will cooperate successfully to achieve the best end results.

Therefore, if employees depend on teamwork to achieve their individual goals but they do not have good collaboration skills, their performance will suffer.

Management factors

Direct management is probably one of the biggest influences on employee performance. Ever heard of micromanagement, or lack of feedback? It is no wonder that one in two employees have left their jobs to get away from their managers.

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