Every employer wants an effective and efficient workforce. In fact, want is the wrong word here. You need your workforce to be productive. It’s a basic requirement for a healthy, functioning company.

With that said, many businesses still trust leadership to use “gut instinct” when it comes to major decisions like hiring, evaluating performances, and deciding when to let people go. In an era defined by data and precision, you need more effective methods to unlock the potential that each employee possesses. Performance analytics can help.

THE NEED FOR TARGETED PERFORMANCE ANALYSIS

Feedback is essential in the workplace. Performance reviews provide important insights into how an employee is fairing over time. Two-way communication keeps feedback loops open. Goals, such as OKRs (objectives and key results) and KPIs (key performance indicators), are also helpful. They create frameworks and determining factors to guide performance over time. Incentives, such as raises and bonuses, encourage employees to perform better, too.

And yet, despite all the tools that you likely already employ, in most cases, the dual task of assessing and improving performance remains a vague, indefinite practice. Managers and HR teams are still collecting, processing, and analyzing the data on their own. And in the end, you have to make key decisions about employee development based on your own anecdotal experience and analysis.

The age of data has finally started to break this status quo with the introduction of performance analytics.

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