Blog, Human Resources

Setting the Right Performance Standards

The success of a company is bound to the performance, productivity, and dedication of its employees. You can have all the necessary tools for success, but if your employees aren’t all on the same page, your efforts and resources will go to waste. Setting performance standards will allow you to determine if your staff is meeting company targets and whether your organization is on the right path. It’s critical that everyone values and works towards the same goals. Performance standards help employees understand the importance of their roles and how their work affects the company’s success. The following tips can help you set strong performance standards for your company.

: When setting goals for each position, management should collaborate with employees. Both sides must work together to make sure the standards are realistic and in line with company goals. When employees participate in this process, it makes them feel valued and will increase their motivation.

Hierarchy: Make sure to create standards according to the hierarchy of the position. Management roles should have higher standards for accountability, productivity, and leadership, for example.

Job Description: Go over the responsibilities and requirements of each position, sit with the employee, and discuss what types of standards can be set for the role. This will help you determine if they’re meeting targets and will allow you to compare employees’ performance.

Data: Consider data from previous years to help determine new standards. Having real metrics and statistics will help you to set realistic targets.

Prioritize: Every position will have multiple goals to meet, but some of those targets will be more important and have a greater impact on the company’s success. It’s vital that both management and staff understand this and give priority to the correct targets when setting up standards.

Monitoring: Establish how management will monitor employee performance. Things like quality and quantity of work, cost, and completion time should be accounted for. Based on these elements you can determine if a person is being effective and productive.

Performance Evaluation: Set up times for management to meet with employees and discuss their performance, preferably every six months or at the end of each project. This discussion needs to be a two-way review. Give your employees the opportunity to voice their concerns and let you know what kinds of issues they’re experiencing and the improvements they recommend to better deal with these problems moving forward. Encourage management to give constant feedback and maintain open communication with employees.

Performance standards should be communicated in a way that everyone at the company understands. Bear in mind that sometimes external aspects will constrain your employees’ ability to perform at optimal levels. Talk to them and let them know that their wellbeing is as important as their output. Make sure everyone has the necessary tools to perform their job and provide a positive work environment, as these factors will greatly affect employee performance. Most importantly, constantly review and update performance standards. Constant self-evaluation is a necessity for success.


– Viviana Sanchez