Employee Well-Being

Measuring Employee Performance and Its Relationship with Company Culture

Onur Ilkoz
February 22, 2024
5 min read
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All managers observe and evaluate their employees to determine whether their activities contribute to the company's purpose, growth strategy and sustainable profitability. However, this evaluation may not always yield objective results if it is not conducted with the right criteria and at the right frequency. In order for employee evaluations to yield objective results and for decisions based on these results to be fair and transparent, a performance evaluation system should be implemented with a systematic approach. According to Betterworks, companies with robust performance management processes are 39% more likely to attract and retain the best talent. Therefore, it is critical for companies to evaluate performance with the right frequency and effectiveness.

To measure employee performance correctly:

1- First of all, you should create a performance management plan. Determine a measurement method in line with your company goals.

2- You should define OKR and set goals related to the roles. You can also set sub-goals for each goal. By setting performance criteria such as knowledge, skills, behavior or attitude, you can turn these criteria into KPIs to monitor individual progress.

3- Once you have found the performance criteria you want to measure, track the data obtained from employee performance for a while. Compare the current (actual) performance of your employees with their expected (ideal) performance. The difference between the two will reveal the area you need to focus on.

4- You should support your employees with training and development programs to help them improve their current performance and reach their ideal performance.

Company culture is one of the factors that significantly affect and increase the performance of employees. Positive, strong and supportive company culture:

1- Reduces employee turnover rates, making them more productive and enabling them to achieve high levels of performance.

2- Improves employee performance by offering extra training, promotions and career development programs.

3- Recognizes employees, making them feel valued and contributing to retaining the best talent.

4- Encourages innovation and creativity, enabling employees to think out of the box and generate new ideas.

5- It enables employees to speak their minds openly and honestly without fear and to feel safe to give and receive feedback.

6- Increases employee performance by contributing to inter-departmental communication, information sharing and collaboration.

To summarize briefly, measuring performance accurately and designing a transparent and fair performance management process will help you develop a positive company culture, align workflow with company goals, and save resources by anticipating potential problems that may arise. You can evaluate the performance of your employees with tools such as various software, checklists and forms. However, since the activities of your employees are continuous and performance is a phenomenon that is demonstrated many times every day, you should conduct your evaluations more frequently, not just once or twice a year. They should be ongoing, allowing you to get a comprehensive view of employees' daily achievements, weekly and monthly progress. With instant evaluations and frequent feedback, you will observe the performance increase in your employees.

Please contact us at so that we can offer you our solutions and suggestions that will increase your performance.

Onur Ilkoz
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