Employee performance indicators form an important part of the information required to determine and explain how a company will progress to meet its business and marketing goals. The indicator is helping organizations understand if the company is headed in the right direction—and if not because they keep objectives at the forefront of decision making. Effective employee performance is an important metric to make sure that you can accomplish any business objective. A good indicator is more than numbers you report out weekly – they enable you to understand the performance and health of your business so that you can make critical adjustments in your execution to achieve your strategic goals.


An employee performance indicator is a quantifiable measure a company uses to determine how well it’s meeting its operational and strategic goals. Different businesses have different indicators depending on their individual performance criteria or priorities. That said, the indicators usually follow industry-wide standards.

Too often, we see owners fail to get an understanding of how their business operates. They fail to log any departmental metrics of their operations throughout the year, and they’re stuck with an idling business wondering where problems lay.

It’s essential that business objectives are well communicated across an organization, so when managers know and are responsible for their own employee performance, it ensures that the business’s overarching goals are top of mind.

Measuring the right employee Performance Indicators is vital to the health and success that why You Need this indicator. However, when we onboard new clients, we find that some of them are uncertain about what they should be measuring and how they can use these powerful tools.

Indicators focus more on gaining a loy. If you manage a team, there’s a good chance you’ve heard of employee performance indicators. Regardless of whether you’re familiar with them or you’re still asking, “
A good indicator of employee performance should act as a compass, helping you and your team understand whether you’re taking the right path toward your strategic goals.

To be effective, this indicator must:

  • Be well-defined and quantifiable.
  • Be communicated throughout your organization and department.
  • Be crucial to achieving your goal. (Hence, key performance indicators.)
  • Be applicable to your Line of Business (LOB) or department


The trouble is, there are thousands of indicators to choose from. If you choose the wrong one, then you are measuring something that doesn’t align with your goals.

The best way to accomplish this is by researching and understanding some of the most important indicators. This way, you’ll have a better understanding of which ones are specific to your industry and which ones will be of no benefit. The right indicator for you might not be the right to performance indicators for another organization. Make sure you’ve researched as many key performance indicators as you can to determine which ones are appropriate for your industry. From there, determine which indicator targets will help you further understand and meet your goals, and then integrate them throughout your department. The performance indicator should match your strategy, not just your industry.

Najmeh Sadeghi

Najmeh Sadeghi

Marketing Manager Tneed

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