employee scorecard, how to make employee scorecard

Employee scorecard is one of the most important documents in business. This is because a scorecard is linked with performance. Additionally, it also talks about where an employee stands in the bell curve rating. Due to the benefits of making a scorecard, all established companies use this in the real world. These companies make a scorecard for employees and decide about the future employment policies. This not only gives a performance overview but also highlights scope of improvement. Due to this you do not make employee scorecards based on performance parameters only.

Why Creating Employee Scorecard is important?

First of all, It plays an important role in the multidimensional growth of an employee. Secondly, growth of a company depends on how many skilled employees a company has. Performance is the key factor in stability. If you are hiring a sales executive or hiring an HR manager performance rule apply. Additionally, you also identify the missing opportunities with number crunching. When you consider the performance of an organization as a whole, a scorecard defines the existence of a company. If the scorecard of employees has positive numbers the business is doing good. In other cases you need to improve. If you want to make profit in business this will help. For any venture, comparing goals with the actual performance is very important.

Therefore, creating an employee scorecard is a ‘must do’ for any organization. This will help you improve performance even if you are already making money in business.

Benefits of Making Employee Scorecards

As mentioned above it is directly linked with a company’s performance. Therefore, creating an employee scorecard is a ‘must do’ for any organization. This will help you improve performance even if you are already making money in business. Here is a list of some of the top benefits of making employee scorecards.

  • First of all, a scorecard has clearly defined goals.
  • When you apply scorecard parameters to all employees, it motivates employees to achieve the goal.
  • This is like a monthly report that gives you a performance overview of individuals.
  • You also get a list of non-performing employees.
  • The data helps you to improve employee performance using some modern techniques.
  • You can also reward employees for better performance to make sure they maintain the numbers.
  • In the end, happy employees stay longer. You can reduce employee resignation if you keep rewarding the best employees.
  • This helps you in using Skill Based Work Allocation.

How to make a scorecard?

The question of how to make a scorecard will have different answers to different companies. Because the employee performance measurement parameters are different everywhere. Therefore, we can not fit everyone in the same set of rules. For example a call center employee scorecard will be different from a factory worker. A call center performance metrics measure calls in a day, quality score, feedback etc. on the other hand a factory worker performance measurement may include a piece rate system. Every industry is unique in its own way. As a result, employee performance metrics are also different. Therefore you cannot apply a standard rule everywhere. Therefore, to come to create a standard measurement tool, you need to search for similar metrics. You can use these performance metrics in the company to create an employee scorecard.

Parts of Employee Scorecard

Now, going back to the main question – How to make a scorecard? Here is a list of a few essentials that should be part of performance metrics. These are standard parameters that any company can use to judge employees.

Core Job

This is the primary reason to hire employees. Let us understand this with the help of two different examples.

  • If you hire a sales executive, you expect good sales numbers. You can use revenue in the month as one measurement parameter. Or you can use lead generation data. Count the total number of leads or conversions depending on your business requirement. This depends on the internal structure and working model.
  • Imagine you are running a business of cloth stitching. You can use the total stitched pieces per employee model. You can count the pieces that passed through quality checks. Based on this data, you will get to know about who is the best performer.

Quality of Work

Quality ensures business continuity. None of the clients wants to use low or sub standard quality products or services. Therefore, this is the most important criteria for making business profitable once the employee is doing his or her core job fine.


If your employees are productive if they come for work. In case of work from home jobs you can expect them to stay login at their home. You can also create a reward system for 100 percent attendance. The idea is to improve productivity.

Professionalism – There are many distractions at work but you must make sure that employees are focused. Doing the job professionally is as important as being on the job. If your employees follow professional behavior, your company’s image improves in the market.

Consider these before you make employee Scorecard

As a company you need to be very focused. Then only you will be able to beat the competition. Additionally, when your employees know exactly what to do, the performance improves. As a result you will make more profit.

Define clear goals in employee scorecard

Most companies define their goals into two categories. Short term goals and long term goals. But when it comes to employees, you need to be very specific. Therefore, let the employees know exactly what you expect from them. If you miss out on this parameter then the whole process will fall apart. Your employees should be aware of what they need to achieve in order to prove their performance.

Divide work into small tasks with expected date of completion

Most people are aware about long term goals but it is not divided into small tasks. Due to this it is very complicated to know the status. On the other hand you can divide a big task into small measurable units. Understand this with an example where you want to make a website. You can divide the task into research, designing, feedback, testing and delivery. This task structure can fit a long list of website development activities. Divide the work and give some points on each task when you make an employee scorecard. Every task should also have a deadline or an expected date of completion.

Define KPI and Use skill based work allocation

Every scorecard has a KPI. KPI stands for Key performance indicator. This is how you manage performance via employee scorecard. Defining is one thing but you also have to make employees understand this. Before starting the very first task, employees should be aware of this to avoid any conflict. You also need to make sure that you are allocating the work based on the skills of the employee.

Review employee scorecard on monthly basis

As a business owner you must review employee scorecards on a monthly basis. Due to this your employees are also considering this as a regular practice. Appreciate wherever appropriate and motivate people to work hard on the other hand.

Scorecard also works as a free performance management system. You can create this internally using an excel sheet. Therefore, no cost is involved in managing the scorecard. All you need is proper execution and measurement to achieve good results. You can also use a performance management software to do the job. In this kind of software application it is easy to enter tasks and measure performance.

Role of Employee Scorecard after resignation

Making a scorecard is also an important document because employees also know their performance. People switch organizations. There are many reasons for resignation. They often show the experience letter from the previous organization. The new company also does employee verification. If the performance is bad, your manager may give feedback according to the numbers. When the performance is good, it increases chances of rehire in the same organization. Due to this, all companies should create employee scorecards.

Change Language »