Management by The Numbers

Employee performance metrics

Effective management requires the ability to guide groups of employees toward higher levels of performance. While executive and mid-level managers operate at different levels, both are responsible for managing people. One useful approach is tracking employee metrics to gain insight into performance.

What are employee metrics?

Employee performance metrics are data points that measure how well employees are performing in relation to activities critical to organizational success. Any objectively measurable data can serve as a metric, but it must be relevant to the role and valid in assessing actual job performance.

The type of metrics used has a direct influence on employee behavior. Some metrics may encourage genuine performance improvements, while others may simply be "gamed" to meet targets without driving real value. In this way, metrics shape organizational culture by signaling what is considered important.

Metrics can be both formal—those officially built into the job description or performance reviews—and informal, which emerge from social interactions and day-to-day observations. Maintaining formal objectivity in how metrics are applied not only builds employee trust but also helps organizations avoid legal risks and increase engagement. Trust is the central tenant of employee engagement.

Also keep in mind that numbers are numbers and often don't tell a complete story. Thus, one may need to use the metrics to guide and help decision making but not supplant the natural mechanics of personal understanding, insight, and perspective. 

Below is a list of various employee metrics you can explore to strengthen your understanding.

26 Key Employee Performance Metrics You Should Track in 2025