How Do You Analyze Employee Performance and Design Incentives in a Project-Based Company?

Analyzing Employee Performance in a Project-Based Organization

I am managing the HR Department in a Telecom vendor company with 60 employees. Our organization is entirely project-based, and I have been tasked with analyzing employee performance and determining an incentive structure accordingly.

I am seeking assistance on how to analyze employee performance, considering it depends solely on the volume of projects, which are inconsistent. Additionally, I need guidance on the criteria and methods for designing an incentive scheme.

I eagerly await your expert insights and feedback on this matter.

Best Regards,
Avneesh Mishra

Types of Metrics for Project Analysis

Metrics can be:

• Qualitative
• Quantitative
• Timeline of the project
• Cost reduction in the project
• Completion in time
• Individual initiative
• Complexity of the operations faced
• Skill gap, innovation required
• Managing externalities and internalities related to the project

There will be several challenges:

1. People may work on different projects throughout their careers.

2. Training needs of each individual may vary.

You will need to track individual performance as per project SLAs and have a skill map in place. Next would be at least a rudimentary succession planning system. Certain KPIs could be generic for all or fixed depending on the challenges faced by your company or the niche in which you operate. Challenges across ranks and client needs will vary. You will have to create several rough formats.