How to measure job performance in companies

26 of February, 2025

Don’t know how to measure employee performance? This problem is more common than you might imagine, and one of the solutions we have is performance evaluation based on competencies. It’s the way to know if an employee is ready to perform his or her task or, on the contrary, lacks the necessary skills.

Coupled with the work productivity tools we have at our disposal, it will provide us with essential information about employee performance.

What type of competencies are there to measure job performance?

To better understand how to measure job performance, we need to clarify concepts. Competencies are a series of knowledge, skills, and abilities that a worker needs in his or her job. As you can imagine, the desired competencies change depending on the position held, the type of work, or the responsibilities assumed.

Basic competencies to measure job performance

Thus, when measuring job performance we can use different competencies for each team or worker, although the most basic ones can be grouped into:

Labor productivity: the employee’s ability to complete tasks and reach objectives in an efficient time.
Quality of work: the ability to produce high-quality results and meet the standards set by the organization.
Initiative: the willingness to take on additional responsibilities without the need for constant supervision.
Collaboration: the ability to work effectively in a team and communicate clearly.
Adaptability: the ability to adjust to changes in the work environment.
Problem-solving: the ability to identify and effectively address challenges and obstacles.
Technical skills: mastery of the skills and knowledge necessary to perform job-specific tasks.
Leadership: the ability to make effective decisions and motivate others towards the achievement of objectives.
Effective communication: the ability to express ideas clearly and persuasively, and actively listen to others.
Customer orientation: the willingness to meet the needs and expectations of internal and external customers.

Thus, the evaluation serves to analyze the company’s performance based on its capabilities according to the job title. There will be a series of competencies that will make it more useful for a particular position. Unlike other productivity tools, it offers us a qualitative evaluation, not a quantitative one. Thus, you know how a result has been obtained, and we don’t just find out what result has been obtained.

How to measure job performance in a few steps

If you want to know how to measure job performance based on competency evaluation, you should know that the process consists of five steps. First, you’ll need to set the necessary competencies for each position, as well as the required level. The third phase consists in observing the workers, which will allow us to gather information to draw conclusions and take the necessary measures. Finally, we must offer our feedback to the analyzed workers.

Definition of the performance to be evaluated

We will start by identifying what is necessary for a worker to successfully perform his or her job. We often encounter soft skills (related to the person) and hard skills (related to the job). Issues such as leadership, initiative, tolerance, or strategic vision are some examples. There can be three types:

Basic: they are essential for the performance of any work.
Specific: they are related to the specific job of the worker.
Generic: they can be applied to an entire team or the whole company.

The cognitive elements represent the knowledge level of something, technical or not. For their part, the attitudinal elements refer to how a person behaves in different scenarios. Finally, the procedural elements are related to the skill in the development of a task.

Defining the minimum level of competencies

When we have decided the necessary competencies of each position, we have to consider the required level in each case. The easiest thing is to use the same scale for each competence, and from there establish the different levels. For example, we can set a scale from 1 to 10 for each skill. The desired ability to work under pressure could be 5, but communication 7.

Observation of employees

This is the key point, as it will allow us to know the competence level of workers. How do they act? This should be the responsibility of managers or team leaders. To get the desired results, you should schedule this observation phase in a phase with a medium workload. Thus, it will not be altered by peaks of work or times of low production where it is difficult to analyze the work of each employee.

Continuous evaluation is another option. It will help us detect problems in the company or discover opportunities for progress. To streamline processes and data management, you can use the performance evaluation software of Sesame HR. You just have to create the form with the different skills, the scale, and send it to the evaluators. You’ll receive the answers in real time, which facilitates the evaluation.

Conclusions on how to measure job performance

Based on the results obtained in these surveys, it will be easier for us to analyze the results and take appropriate measures. Do workers have the desired skills? Is there anyone who stands out too much? Are there workers who do not reach the minimum required? When patterns are repeated, there may be problems.

We have the necessary information to decide if it is necessary to develop training, relocate workers or any other initiative that helps improve the situation. You may have people with certain skills in a position where they cannot exploit their full potential. In any case, it is necessary to establish an action plan.

Communication of results on how to measure job performance

We have come to the last step, where we will be extremely sensitive. Competencies are something very personal, as well as a subjective concept. They can’t be measured with the same objectivity as results. Therefore, positive aspects should also be highlighted, not just the negative ones, and the focus should be on the problem. One-to-one follow-up meetings are the best scenario for offering this feedback in private.

What are the most effective methods to measure job performance?

Below, we compile the most effective methods to measure job performance:

SMART objectives: they provide a clear basis for evaluating performance and progress.
Key performance indicators (KPIs): specific and quantifiable metrics to objectively track progress.
Periodic performance evaluations: they serve to identify areas of improvement and establish future objectives.
360-degree Evaluation: to obtain a holistic view of an employee’s performance.
Competency evaluations: to evaluate employee performance in relation to the specific competencies required for their roles.
Analysis of results and achievements: to evaluate performance based on results and achievements.
Exit interviews: conduct structured interviews with employees leaving the organization to identify potential areas of improvement and talent retention.

These methods offer different approaches to measure job performance and provide valuable information for decision making.

How to measure job performance with Sesame HR

Don’t forget to use Sesame HR’s HR software for tracking, especially for follow-up meetings where the success of the measures that have been taken will be analyzed.

If you don’t know how to measure job performance with Sesame HR, ask for a 14-day demonstration with our team to guide you through the entire process. Guaranteed success!

Customer-oriented, both internally and externally, specializing in the definition and implementation of HR policies, as well as talent management, recruitment, and retention. Strong leadership, communication, negotiation, organization, and team coordination skills. Over 12 years of experience in Human Resources.

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iriserrador

HR Content Specialist