How to Create a Scorecard for Employee Performance

An employee scorecard that periodically rates a worker's performance on the job can assist you in your management efforts. The scorecard should be kept simple so that both the employer and employee understand each of the parameters. Develop a straightforward scorecard that you will use to motivate your employees to maintain and, in some cases, improve their work habits. Employees are likely to strive to attain higher ratings which, in turn, improve your small business as a whole.

  1. Determine the Specific Purpose

  2. Determine what you will measure with the scorecard that will help improve employee performance. Most small business owners see a scorecard as a part of the overall evaluation of an employee and a way to encourage workers to perform better. For example, you might have a worker who is diligent in almost every way but has an issue with cleanliness.

  3. In this case, use the scorecard to point out to the worker this one flaw. The otherwise excellent employee will hopefully be motivated by a low score in this one area to work to clean and organize his work area.

  4. Select a Format

  5. Consider the format for the scorecards. You can use a simple computer word processing program to make a template. This design will list a number of parameters that will be rated along with a box in which a number can be assigned. You will want to create a scorecard for each individual in your employment with their name and position at the top of the card.

  6. Also, remember to assign a time period to each card. For example, you might want to measure employee performance for six weeks at a time. This way, you can update the scorecard periodically to show how the employee has progressed, maintained performance or regressed.

  7. Select a Rating Scale

  8. Pick your rating scale so you can assign a number based on well you think a worker is performing in a particular area. For example, on a scale from one to five, with five being the best, you might grade an employee on punctuality. A worker who is consistently on time would rate highly, while one who is often late might receive a two or three.

  9. Select the Metrics to Be Measured

  10. Choose the parameters that will be measured on each scorecard. These will likely include such issues as customer service, ability to follow directions, punctuality, cleanliness, self-motivation and production. You will create these parameters based on the specific duties associated with the positions of your employees as well. One employee's scorecard could, therefore, differ in some respects from that of another employee.

  11. The U.S. Office of Personnel Management recommends that you make sure your parameters focus on results of the employees' efforts as well so that you create a balanced scorecard giving a total rather than a partial look at worker performance.

  12. Talk to Your Employees

  13. Disclose to your employees everything they need to know about their scorecards. This includes the rating system you use, the attributes upon which they will be rated, the time period covered, how it will affect their overall evaluation and methods to improve particular ratings. Speak in a positive manner about this evaluation tool so it will be more readily accepted by your workers. Share scorecards privately with each employee.

  14. According to the Gallup Management Journal, you should be cautious against setting too many input-oriented goals for the employee, but focus instead on objectives that generate good outcomes for your business. For example, don't just set an objective of the employee arriving on time every day, but instead set a goal of the worker being settled in and actually working at a certain time each day, which might translate to his being actively engaged rather than waiting for a computer to boot up or chatting with others about non-work related issues.

  15. Tip

    Utilize an underperforming employee's scorecard to help create an improvement plan. Work with the employee to brainstorm ways in which she can perform at a higher level so that her scorecard rating will be higher. For example, an employee who takes an excessive amount of time to ring up sales can work on ways to streamline her sales pitch and closing without sacrificing her customer service skills.


    Keep in mind that the employee scorecard is simply one tool in assessing how well workers are performing. Numbers alone cannot tell you the whole story about how your workers are progressing. You must consider individual efforts terms of learning, adjusting and adapting as this relates to their position in your employment.