An Overview of Performance Metrics: Current Issues and Future Directions

Despite the extensive research on the relationship between human resource management (HRM) practices and performance outcomes, we lack clear and consistent guidelines about how to conceptualize and measure different performance outcomes. In this paper, we provide a comprehensive review of the performance metrics employed in the prior literature. We examine the differences between (1) proximal and distal measures; (2) subjective and objective measures; and (3) multi-dimensional measures. We also examine the differences in the choice of performance outcomes between multi-industry and single-industry studies and inconsistencies in the definition and measurement of performance outcomes. Finally, we call for greater theoretical and methodological attention to the choice of performance construct and provide recommendation for future research.