Track Employee KPIs and KRAs With Performance Reporting Software


Nidhi Raghuvanshi

Senior editor

Parul Saxena

Chief editor

Last updated: May 21, 2021


Synergita : No. 1 In Performance Management Software

A performance management strategy must not only aim to improve employee performance, but it must also align the workforce with organizational goals and objectives. It allows employees to grow in their careers and consistently yields better results for the business.

Performance management is the process of creating a motivational work culture, where the employees, managers, and business heads review themselves from time to time and work towards common organizational goals. An organization that does not have such a system in place fails to motivate its employees and leaves them directionless and disengaged. A performance management system holds the key to build an efficient workforce and increase overall productivity.

Performance Management: Goals, Objectives, KPIs and KRAs

A performance management system must continuously identify, measure, and develop employee performance. The overall aim of a performance management system must be to align individual performance and objectives with those of the organization. In simpler terms, performance management is a process that provides feedback, builds accountability, and documents performance outcomes. It enables the employees to channelize their talents effectively and work towards organizational goals.

Performance management is generally confused with performance appraisal. Performance appraisal is a part of performance reporting software. Performance management is a much broader and complex concept. It starts with an employee joining the organization and ends when an employee exits the system. It involves activities such as goal setting, frequent communication and progress reviews, feedback, and coaching for performance improvement, employee development plans, recognizing excellent performance, and rewarding it suitably.

Performance management is a systematic process that intends to improve the overall performance of an enterprise by enhancing the performance of individuals within a team framework. It necessarily entails communication expectations, defines roles within a competency framework, and sets achievable benchmarks to promote superior performance.

Hence, performance management is a complicated process. There has to be a proper framework in place to review employee performance and provide feedback and create a system that measures employee performance fairly and objectively. For this reason, organizations must define Key Result Areas (KRAs) and Key Performance Indicators (KPIs) for employees. Let’s discuss this.

What are KRAs?

In a performance management system, organizational goals and objectives are cascaded within the organization at the departmental level and further to the individual level. When departments and individuals are responsible for specific outcomes or outputs, it falls under KRA. In other words, these are areas that an individual or a group is responsible for and will be held accountable for. It’s based on the job description of the person and is used to assign tasks to them.

Defining KRAs for employees can help clarify their roles and performance expectations and ensures that the employee and the organization are working towards the same goal. It puts the focus on results and helps the employees to prioritize activities and make informed decisions.

What are KPIs?

KPIs are a means to KRAs. Key Performance Indicators are defined to measure an employee’s performance in Key Result Areas or KRAs. KPIs are clear and measurable. Employee performance is the result-oriented measurement. KRAs tell you what you must achieve while KPIs tell you how you can make something. KPIs link back to KRAs that further link back to departmental and organizational goals.

Tracking and Monitoring KPIs and KRAs

KPIs and KRAs must be tracked, monitored, and reviewed, and even adjusted in a timely and systematic manner. It is essential to do these reviews as often as possible for optimal results. Generally, the enterprises conduct the performance review on a monthly, quarterly, half-yearly, or annual basis. Keeping track of review cycles can be daunting. Managing this process manually over emails and setting reminders can be complicated.

Performance management software solutions can be of enormous help in this scenario that can automate the entire process. You can define review cycles based on your company policy. These solutions also work as excellent performance reporting software as they provide you with feedback forms, generate reports, and even facilitate graphical analysis of the review.

What is Performance Management Software?

Performance management software can help companies manage employee performance and productivity systematically. Business leaders can track, analyze, and evaluate the performance of employees so that they meet their goals and identify all the potential issues and address them proactively. The results obtained from performance reporting software can be used to make decisions regarding compensation, career path, organizational goals, hiring, performance reviews and evaluations, and other areas of human capital management.

How Can Performance Management Software Help in Tracking KPIs and KRAs?

Performance management software comes with many features to facilitate a holistic performance management system. Among all those features, are the following features that can help you track KPIs and KRAs:

1. KRA and KPI Data and Documentation

Performance reporting software document KRA and KPI data to ensure clarity at all times. Business heads can use this data to compare employee performance. Employees can use this data to manage their performance.

2. Custom Metrics & Rating

To manage KPIs and KRAs, you can create your ratings and metrics to obtain measurable data. It is vital to measure performance in this manner so that the performance review process remains objective and free of any bias.

3. Review Cycles

Review cycles can be defined based on company policy. The performance management software can send notifications and reminders automatically so that you conduct reviews as per the timelines.

4. Goal Variance

Performance reporting systems can generate goals variance reports that monitor any significant deviations in employee performance. It allows you to pre-empt promptly by adjusting KRAs and KPIs if necessary.

5. KRA-KPI Performance Reports

Some performance reporting systems also have dashboards and reports, specifically the KRA-KPI report that can help you identify gaps in performance and take the necessary measures.


Goals, objectives, KRAs, and KPIs are all crucial elements of a performance management system. However, even the most elaborate performance management systems can fail if not managed and implemented well. Tracking and monitoring KPIs and KRAs, reviewing and manually documenting them can be quite time-consuming and challenging. Performance management software can streamline the process and automate it to a large extent.

Passionate Digital Marketer & Software Analyst. I recognize the importance of interactive engagement in today’s world and works towards building a steady flow of relevant, user-oriented content to obtain high-rank placement in search engine results.

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