Performance evaluation has been a topic of discussion in recent times for several reasons, with the current situation being one of the most relevant due to competition, the amount of information, and the speed of processes. Additionally, teleworking has increased in importance, as many companies have implemented it in a hybrid, optional, or even permanent way. The goal of performance evaluation is still to measure the contribution of knowledge and talent for successful performance. As a human resources manager, it is important to keep in mind that a productive employee can lead the company to success, while a low-performing employee can be detrimental. Therefore, it is necessary to evaluate employee performance to ensure they meet expectations. Although it can cause discomfort, performance evaluation is essential.
What is performance evaluation?
Performance evaluation is a method used to evaluate professional skills and achievements. It is used to compare expected performance with actual performance. If handled objectively and professionally, it can provide many benefits, such as identifying areas for improvement in an organization or in an individual employee’s performance, as well as making decisions to reward productivity and achieving professional goals. The performance evaluation process is versatile, but its effectiveness depends on how it is designed to meet the needs of the company.
Importance of using the ideal performance evaluation method.
The implementation of a performance evaluation in a company is a major change, and as an Human Resources area, it is important to guide the organization in the selection of the most appropriate evaluation model. Not all types of evaluations are suitable for all companies, so it is important to carefully consider this change, even if you are already evaluating the staff. It is important to keep in mind that all Human Resources actions must be aligned with the company’s strategy and strategic objectives are achieved through people, so the chosen evaluation model should take into account the mission and vision of the organization.
Here are some of the reasons why you should implement a performance evaluation for your employees:
- The analysis of each employee’s performance is crucial for a precise understanding of their role and contribution to the company. This allows you to determine if an employee is qualified to take on greater responsibilities, such as in the case of a promotion, and choosing the best candidate based on their achievements and professional skills. Here, training and development of human talent play a very important role.
- The evaluation of employee performance is a valuable tool for detecting training and development needs. If some employees are having difficulties fulfilling their tasks or achieving established goals, it may be due to a lack of proper training. By identifying and addressing these training issues, employees’ skills and performance can be improved, which in turn improves the company’s chances of success.
- Performance evaluation is an essential tool for setting goals and objectives for the company. By analyzing employees’ performance, areas of opportunity can be identified and worked on to improve, whether through motivation or training. This allows for new objectives to be set for the company and for overall performance to be improved.
- Performance evaluation provides employees with the opportunity to have a clear understanding of their performance, both positive and negative. This allows them to know their strengths and weaknesses, and to work on improving in areas where they are struggling. This allows them to prepare to excel every day and perform better in their job.
- Performance evaluation is a valuable tool for ensuring that rewards and incentives are distributed fairly among employees. By keeping detailed track of each employee’s performance, it can be determined accurately who is the best candidate for a reward or promotion, which helps maintain employee morale and motivation. Being an impartial process, it helps avoid favoritism and maintain a proper and fair work environment.
Best performance evaluation techniques.
Forced choice.
Descriptive statement evaluation is a method in which an employee is evaluated by selecting pre-established phrases. The person being evaluated is forced to choose a phrase and relate it to the person in question. Often, both positive and negative phrases are included, or blocks of positive phrases are created.
When only positive phrases are used, the evaluator must assign a numerical rating, such as a number from 1 to 5, to each phrase, which adds more precision to the process.
Graphic scale method.
The most common and well-known performance evaluation method is the graded factors method. Although it may seem like the simplest method, its application requires caution to avoid subjectivity and bias on the part of the evaluator.
The performance evaluation method with graded factors consists of evaluating the performance of employees through previously established and classified criteria. A double entry table is used in which the horizontal lines represent the performance evaluation criteria and the columns (vertical direction) represent the levels of variation of those criteria.
The main advantage of this method is that it quantifies the results and facilitates global comparisons, but it also has the disadvantage that it can reduce the complexity of an employee’s performance to a simple number, which only has meaning when related to the maximum and minimum values that can be obtained in evaluations.
Individual interview.
The individual interview is an evaluation method in which the result comes from the information provided by the employee himself, who is the one who performs the tasks corresponding to his position. The success of this method lies in knowing how to direct the conversation in such a way that the necessary data or impressions are obtained.
It is a method that can help obtain details about an employee’s work routine that would otherwise go unnoticed.
360-degree performance evaluation.
360-degree performance evaluation is not recommended for organizations that have not previously implemented performance evaluation, as its application requires a high degree of maturity and organizational culture. It is a costly method that requires a solid evaluation platform and the participation of the entire organization in the planning and execution of the process, involving work colleagues, external clients, superiors, subordinates, internal clients, and the employee being evaluated. In addition, this type of evaluation can be difficult to implement in very small organizations.
It is important to note that this evaluation is more complex and requires a high level of professionalism to interpret the results. Nevertheless, implementing performance evaluation methodologies can help employees grow and thrive in the organization, and it is recommended to do so with the help of reliable technology prepared for this important human resources task.