Measuring Team Performance In A Small Or Scaling Business

Setting clear performance goals is just the first step in driving your team toward success. To ensure those goals are met, you need an effective process for measuring and monitoring performance. In small and scaling businesses, where every employee’s contribution matters, keeping tabs on performance in real-time can make a huge difference in staying competitive and productive.

In this guide, we’ll explore how to track employee performance using both quantitative data and qualitative insights. You’ll learn how to identify early signs of underperformance and intervene with coaching or adjustments before small issues turn into larger problems. Plus, we’ll dive into tools and strategies for continuous monitoring and feedback that will keep your team aligned with your company’s goals.

In any business, but particularly in smaller or growing teams, performance monitoring is crucial for making sure every employee is contributing effectively to the overall mission. It’s not enough to set goals and hope for the best—active monitoring helps you understand how well your employees are progressing, whether they’re meeting expectations, and where they might need support.

Without regular monitoring, issues can go unnoticed for too long, leading to bigger problems down the line. On the flip side, when performance is consistently tracked, you can identify both strengths and weaknesses early and take action to support employees in real-time. This keeps morale high, fosters continuous growth, and ensures your business stays on track.

Quantitative data provides a measurable, objective way to track performance. These metrics are critical for keeping evaluations consistent and ensuring that employees understand exactly how their work will be judged.

One of the most common ways to monitor performance quantitatively is through Key Performance Indicators (KPIs). KPIs are specific, measurable benchmarks that track how well an employee is performing in their role. They vary by industry, department, and role but are always linked directly to the company’s larger goals.

For example, in a sales team, KPIs might include metrics like:

• Number of sales closed: How many deals has the salesperson closed in a specific time period?
• Revenue generated: What is the total value of sales that the employee has brought in?
• Conversion rate: How many prospects turn into actual customers?

In a customer service team, KPIs could include:

• Call resolution time: How long does it take for a representative to resolve customer issues?
• Customer satisfaction score: How satisfied are customers after their interactions with the employee?
• Number of tickets resolved: How many customer queries has the employee handled?

These metrics offer a straightforward, data-driven way to monitor performance. However, it’s important to balance these numbers with qualitative feedback, as we’ll explore next.

While quantitative data is essential for tracking measurable outcomes, qualitative insights offer a more nuanced view of performance. This type of monitoring focuses on behaviors, skills, and how well employees embody the core competencies required for their roles.

For example, a project manager might not have KPIs as clear-cut as a sales team, but you can monitor their performance by assessing how well they:

• Lead teams: Are they effective in coordinating tasks and ensuring that deadlines are met?
• Solve problems: How do they handle obstacles that arise during projects?
• Communicate: Are they keeping everyone informed, and are their instructions clear?

Feedback from peers and managers is often the best source of these qualitative insights. Regular check-ins or 360-degree feedback reviews can provide a fuller picture of how well an employee is doing beyond just the numbers.

For instance, a marketing manager might be doing great in terms of hitting campaign deadlines (a quantitative measure), but team feedback reveals that their communication style is unclear, causing confusion among their team (a qualitative issue). Monitoring both types of performance data helps you identify these gaps and take corrective action.

One of the key benefits of actively measuring and monitoring performance is the ability to spot early signs of underperformance before they become major problems. By keeping a close eye on both quantitative and qualitative indicators, you can intervene early with targeted coaching or adjustments.

In terms of quantitative data, here are a few red flags that may indicate an employee is underperforming:

• Missed KPIs: If an employee consistently fails to meet their KPIs—such as low sales numbers or poor customer satisfaction scores—it’s an obvious sign that something’s wrong.
• Declining performance: Even if the employee was meeting expectations in the past, a sudden or gradual decline in their numbers might indicate a loss of motivation, confusion about tasks, or external factors affecting their work.

Qualitative underperformance might be harder to spot at first but is equally important. Look for signs such as:

• Decreased engagement: An employee who was once active in meetings or proactive with suggestions but has become disengaged might be struggling.
• Poor communication: If communication issues are causing project delays or misunderstandings, it may signal a deeper issue with how an employee is managing their responsibilities.
• Negative feedback from peers: Regular feedback from colleagues that points to behavioral issues, such as lack of teamwork or difficulty following instructions, is an early indicator that performance may be slipping.

When these red flags appear, it’s time to step in with coaching and support before the problem worsens.

Once you’ve identified an underperformance issue, the next step is to provide targeted coaching to help the employee get back on track. Here are some strategies to consider:

Often, underperformance stems from employees not having a clear understanding of what’s expected of them. Sit down with the employee and clarify their specific goals. Be sure to tie these goals back to the overall company objectives so they understand the big picture.

A project manager struggling with timelines may need clearer instructions on how to prioritize tasks. A helpful intervention would be breaking down their projects into smaller, more manageable milestones, making it easier to monitor progress.

Frequent feedback is essential for keeping performance on track. Make sure feedback is immediate and actionable, focusing on specific examples rather than general criticisms.

Instead of saying, “You need to improve your communication,” try, “During the last project, there were several misunderstandings about task delegation. Let’s work on creating clearer instructions for the team next time.”

Sometimes underperformance is a result of an employee not having the right tools or training to succeed. Make sure the employee has access to any necessary resources—whether that’s additional training, software, or mentoring from a more experienced colleague.

A customer service representative who struggles with handling difficult calls might benefit from role-playing sessions where they practice handling tricky situations with a mentor before going live with customers.

Measuring and monitoring performance shouldn’t be a one-time activity; it needs to be a continuous process. Here are a few ways to keep performance on track over the long term:

Schedule frequent, informal check-ins with your employees to discuss their progress. These meetings don’t need to be lengthy or formal but should offer a chance for employees to share updates and for you to provide guidance. These regular touchpoints also allow you to address potential issues before they escalate.

A marketing team might have a weekly check-in where each team member shares their progress on current projects. This provides an opportunity to celebrate small wins and course-correct if anyone is falling behind.

To keep track of both quantitative and qualitative data, consider using a performance management tool. Tools like Lattice, BambooHR, or 15Five allow you to set goals, monitor KPIs, and collect real-time feedback from peers and managers. These tools make it easier to keep performance data organized, especially as your team grows.

If you’re using a continuous feedback approach, make sure you’re incorporating regular coaching sessions into your management style. Coaching isn’t just about correcting mistakes—it’s also about helping employees maximize their strengths and potential. By consistently providing feedback, you create a culture where growth and learning are encouraged.

A designer working in a fast-paced creative agency might benefit from immediate feedback after completing a project, rather than waiting until the end of a campaign. Quick, constructive feedback allows the designer to make improvements for the next round of creative work.

There are several tools available to help streamline the process of measuring and monitoring performance. These tools often integrate with your existing HR systems, making it easy to track KPIs, gather feedback, and measure progress in real-time. Some popular options include:

• Lattice: A performance management tool that offers real-time feedback, goal tracking, and performance reviews.
• BambooHR: An HR software that helps manage performance reviews, track goals, and offer feedback within a user-friendly platform.
• 15Five: A platform that emphasizes continuous feedback, employee engagement, and real-time performance tracking through weekly check-ins and reviews.

These tools are particularly useful for growing teams, as they provide a structured way to collect and analyze both quantitative and qualitative performance data.

Measuring and monitoring performance is crucial for keeping your team on track and ensuring they meet their goals. By balancing quantitative data (like KPIs) with qualitative insights (like peer feedback), you get a well-rounded view of each employee’s performance. More importantly, continuous monitoring