How to Evaluate Manager Performance: Methods, Metrics and Tools

An effective manager evaluation process contributes to organizational success and employee well-being. Evaluating managers is essential not only for maintaining high performance standards but also for ensuring that managers can support their teams effectively.

This guide explores various methods and tools for evaluating manager performance, highlighting key metrics, and sharing best practices to create a robust manager evaluation system.

Following these insights, you can foster a culture of continuous improvement and drive both employee performance and that of their managers.

Methods to evaluate manager performance

360-degree feedback

360-degree feedback is a holistic approach that involves getting constructive feedback from peers, subordinates, and superiors.

For managers specifically, 360-degree feedback gathers input from fellow managers (peers), subordinates (upward feedback), and superiors (downward feedback) to provide a comprehensive view of their performance. This method helps identify strengths and areas for improvement from multiple perspectives, offering a well-rounded assessment that can guide personal and professional development.

Our guide, How to Implement a 360-Degree Performance Appraisal in 15 Steps, takes you through the process of rolling this out through your company.

For inspiration on which questions to ask, check out 360 Feedback Questions for Leadership: Evaluate and Nurture Leaders.

Competency-based reviews

Competency-based performance appraisals assess managers against predefined competencies essential for their role, such as leadership, communication, and strategic thinking. By measuring how well managers exhibit these key skills, organizations can ensure their leaders are equipped to meet current and future challenges.

This approach highlights areas needing development and aligns managerial performance with organizational goals and values.

A leadership competency framework is necessary to clarify which particular competencies should be tracked.

You can also download our competency-based performance review template to simplify the process.

Self-assessments

Self-assessments encourage managers to evaluate their performance to provide insights into self-awareness and growth areas. Using structured questions and prompts, managers can gain insights into their strengths and challenges, helping with self-awareness and personal growth.

This method complements other evaluation tools by providing a balanced view of performance from the manager’s own perspective.

Check out our self-evaluation questions guide to explore a range of questions leaders can ask themselves.

Upward feedback from team members

Upward feedback involves collecting input from a manager’s direct reports to evaluate their leadership effectiveness and impact on the team. This method provides valuable insights into how managers are perceived by those they lead, highlighting areas where they excel and where they may need to adjust their approach.

Incorporating upward feedback helps build a culture of open communication and increases employee engagement. It makes team members feel heard and valued, as their opinions directly influence managerial evaluations and decision-making.

One-on-one meetings

One-on-one meetings between managers and their superiors provide an opportunity for direct, personalized feedback and performance evaluation. These regular check-ins allow for open discussions about progress, challenges, and development goals.

For example, a monthly one-on-one meeting might focus on reviewing recent project outcomes and setting targets for the upcoming period, ensuring alignment with organizational objectives and addressing any immediate concerns.

Quantitative metrics

Quantitative metrics involve using objective data to evaluate manager performance, such as team productivity, employee retention rates, and project completion times. These metrics provide a clear, data-driven picture of a manager’s effectiveness.

For instance, tracking a manager’s ability to meet key performance indicators (KPIs) like sales targets or customer satisfaction scores can highlight their impact on the business’s bottom line.

Check out our extensive list of employee KPI examples for the range of available metrics.

The above are some of the most valuable ways to determine managers’ performance. They can be part of a wider review system.

Key metrics for manager evaluations

Employee satisfaction and engagement

Utilize surveys and feedback mechanisms to gauge employees’ satisfaction with their managers. High levels of employee satisfaction and engagement often indicate strong and effective management. In fact, employees who are content and motivated will be more productive and committed to their work.

Regularly running employee satisfaction surveys can provide actionable insights into managerial performance and areas for improvement.

A specific metric to measure here could be the Employee Net Promoter Score (eNPS), which assesses the likelihood of employees recommending their manager or workplace to others. This metric provides a clear indication of overall employee satisfaction and engagement.

Team retention rates

Team retention rates are a critical metric for evaluating a manager’s effectiveness. A high retention rate suggests that managers create a positive work environment where employees feel valued and motivated to stay.

In contrast, high turnover can indicate underlying issues with management practices, such as poor communication, lack of recognition, or inadequate support for professional development. In these cases, you need further investigation, honest feedback, and corrective action—a bad manager can drag down the overall performance of an entire team.

Promotions rate

In addition to the rate at which people leave, you must count those who stay and advance their careers in your organization.

The rate at which team members receive promotions reflects a manager’s ability to develop and nurture talent. Managers who effectively mentor and support their team members’ career growth often see higher team promotion rates.

Tracking this metric can reveal how well managers prepare their teams for advancement and contribute to the talent pipeline. Little movement may seem positive from a retention point of view. However, it can also be a red flag that team members must develop faster to move into other internal roles or achieve promotion to a senior position.

Team productivity

Measure the output and efficiency of the manager’s team to assess their leadership effectiveness.

Productivity metrics, like project completion rates and work quality, provide tangible evidence of a manager’s capability to motivate their team to achieve organizational goals.

Goal achievement

Evaluate how well a manager meets or exceeds their personal and team objectives and KPIs.

Assess their ability to set realistic goals, execute plans, and motivate their team to achieve these targets. Consistently achieving or surpassing goals indicates a manager’s leadership skills and ability to align their efforts with the company’s strategic objectives. Regularly reviewing goal achievement can help managers stay on track and contribute to the business’s success.

A specific metric to track could be the percentage of goals met or exceeded each quarter.

Conflict resolution

Examine the manager’s capability to resolve conflicts and maintain a harmonious work environment. Effective conflict resolution skills are essential for nurturing a cooperative and productive team atmosphere.

Managers who can address and resolve disputes quickly and fairly are likely to maintain higher levels of team morale and collaboration.

One suggested metric to track is the frequency and resolution time of conflicts within the team, which can provide insights into the manager’s problem-solving and people management skills.

Communication skills

Assess the manager’s ability to communicate effectively with team members, peers, and upper management.

Clear and effective communication is often said to be vital for successful leadership, as it ensures that everyone is aligned and informed. It reduces misunderstandings and makes for better teamwork within a group.

Feedback from 360-degree reviews, team surveys, and direct observations can provide insights into a manager’s communication strengths and weaknesses.

Innovation

Evaluate a manager’s ability to foster innovation within their team. Encouraging creativity and new ideas is essential for staying competitive and driving business growth.

Creativity can seem like a fuzzy concept, but it’s actually quite simple to measure in a corporate context. Metrics such as the number of new initiatives, process improvements, and creative solutions implemented by the team can indicate how well a manager cultivates an environment that supports pioneering ideas.

Mentoring and coaching

A great manager should be committed to the development of their team members and be willing to invest time in mentoring them. So, assess the extent of the manager’s mentoring and coaching activities outside their day-to-day managerial role.

Good managers invest time in developing their team members through regular coaching sessions and mentoring relationships.

The impact of these efforts can be measured by improvements in team performance, individual career progression, and feedback from team members about their growth and development experiences.

Professional development of team members

Evaluate how well managers support and contribute to the career growth of their team members.

Managers who actively promote professional development through training, mentoring, and growth opportunities are key to retaining top talent and ensuring long-term organizational success. The frequency and quality of development initiatives undertaken by the manager can measure this metric.

Manager professional development

Look at the professional development of managers themselves, including upskilling, training, and acquiring new competencies.

Continuous learning and improvement are vital for managers to stay effective. Tracking participation in professional development programs and the acquisition of new skills can indicate a manager’s commitment to personal and professional growth.

Tools for evaluating managers

Evaluating managers well requires the right tools to streamline the process and make sure the process is comprehensive. Here are some key tools to look out for:

Evaluation software and platforms

Evaluation software and platforms, such as Deel Engage’s performance management features, streamline the evaluation process through data analytics and automated feedback collection from multiple sources.

Such platforms provide a centralized and efficient way to gather and analyze performance data, making it easier to identify areas for improvement and track progress over time.

Templates and forms

Templates and forms can be invaluable resources for smaller companies not ready to invest in software. These tools help standardize the evaluation process and ensure consistency.

However, relying on manual approaches can quickly become overwhelming as the volume of data increases.

Data analytics and reporting tools and performance tracking software

Data analytics and reporting tools and performance tracking software support a continuous approach to performance management by providing real-time insights and comprehensive reports. For example, they can track and monitor performance metrics over time.

This software might include dashboards and visualization tools to help interpret the data easily. They help HR managers identify trends, measure key performance indicators, and make informed decisions based on objective data.

Survey and feedback tools (supporting 360-degree feedback)

Tools that facilitate the creation and distribution of evaluation forms can be valuable for gathering employee feedback on manager performance. These tools often include features for anonymous responses and detailed reporting.

Specialized tools for collecting and analyzing 360-degree feedback can also be particularly useful. These tools compile input from various sources, including peers, subordinates, and superiors, to provide a holistic view of a manager’s performance.

Goal-setting and tracking tools

Goal-setting and tracking tools assist in setting, tracking, and reviewing goals. These tools can ensure managers are aligned with organizational objectives. They often integrate with other performance management systems to provide a comprehensive view of goal achievement.

Including these additional tools can help create a more wide-reaching and effective manager evaluation process.

Deel Engage stands out as a comprehensive solution for manager evaluations among the various tools available. Deel Engage simplifies the collection of feedback from multiple sources and offers robust reporting features that help track progress and identify development areas. The platform’s user-friendly interface ensures managers and HR professionals can easily navigate and utilize its features.

Best practices for manager performance evaluations

Evaluating manager performance effectively requires a strategic approach that incorporates several best practices. Here are key steps to ensure comprehensive and actionable evaluations:

• Set expectations: Clearly communicate the expectations and goals for managers at the outset, including the key responsibilities, performance standards, and the criteria for evaluations—setting clear guidelines helps managers understand how to meet expectations and aligns their efforts with the organization’s objectives
• Conduct regular evaluations: Regular evaluations provide timely feedback and allow adjustments throughout the year—rather than relying solely on annual reviews, conducting more frequent assessments helps keep managers on track and addresses any issues promptly
• Create clear performance indicators: Establish specific, measurable performance indicators that align with organizational goals—these indicators should cover both quantitative metrics, such as team productivity and goal achievement, and qualitative aspects, like communication skills and conflict resolution
• Combine qualitative and quantitative data: Use a mix of qualitative and quantitative data to provide a well-rounded evaluation—quantitative data offers objective insights into performance, while qualitative data, such as feedback from peers and team members, adds context and depth to the assessment
• Provide tangible examples: Provide specific examples to illustrate your points when giving feedback—tangible examples help managers understand exactly what behaviors or actions need improvement and offer a clear path for development
• Proactively gather feedback: Actively seek feedback from various sources, including peers, subordinates, and other stakeholders—this 360-degree feedback approach ensures a comprehensive view of a manager’s performance and highlights different perspectives
• Check-in regularly: Implement ongoing feedback mechanisms rather than relying solely on annual reviews—tegular check-ins foster a culture of continuous improvement and allow for real-time adjustments; they can be informal conversations or more structured meetings, but their frequency and consistency are key
• Link performance to development plans: Connect performance evaluations to development plans that address areas for improvement and build on strengths—this approach ensures that evaluations aren’t just about assessing performance but also about fostering growth and development; development plans should include specific actions, resources, and timelines to help managers achieve their goals

Following these best practices, organizations can ensure that their manager performance evaluations are effective, fair, and conducive to continuous improvement.

Evaluate and improve manager and team performance with Deel Engage

With Deel Engage, leaders have a powerful tool to streamline the evaluation process, provide actionable insights, and nurture continuous improvement.

Deel Engage provides comprehensive performance management solutions, enabling:

• Streamlined performance evaluation process: Simplify manager evaluations with automated feedback collection and data analytics, saving valuable time and resources
• Comprehensive performance and skill insights: Get a well-rounded view of manager performance and competency profiles with 360-degree feedback and quantitative metrics, identifying strengths and areas for improvement
• Continuous improvement: Nurture a culture of continuous feedback and growth with regular check-ins and development plans tailored to individual needs
• Career progression frameworks: Remove ambiguity around promotions or job levels—the clear, accessible frameworks visualize the road to success, giving your team a clear view of their career trajectory within the company
• Targeted training plans: From upskilling to personal development, give your people the resources to grow and excel
• User-friendly interface: Make the evaluation process seamless for both HR professionals and managers
• Deel HR, our truly global HRIS solution, is always included for free

Book a demo to see how our solutions will help you build a high-performance workforce.