What is an employee evaluation?
Employer evaluation forms foster a culture of constant improvement, promote free communication among staff and management, help identify areas for growth, and help HR professionals align personal goals with company objectives. Employee evaluations are an essential tool that enables HR professionals to develop an organized approach to assessing an individual employee’s performance, development, and potential within an organization.
An organization uses an employee evaluation process, sometimes referred to as a performance review or appraisal, to gauge each worker’s effectiveness overall, contributions made on the job, and performance on the job.
In this assessment, performance goals are usually created, the employee’s progress toward reaching those goals is assessed, areas for growth and strengths are noted, feedback is given, and professional development opportunities are discussed. It’s crucial to remember that HR professionals have access to a wide variety of employee evaluations and procedures.
What works best for your company and where you get the best outcomes should be used to establish the proper fit. Testing and playing with the many alternatives we suggest later in this post might be necessary to achieve this.
The relationship between employee evaluations and performance
As an HR specialist, you are in a great position to create and implement procedures that boost worker engagement and performance. The data is clear and consistent across all industries: people perform better (as does the success of the companies they work for) when they receive more feedback from employee evaluations.
Whereas only 18% of workers with low engagement receive feedback on a weekly basis, 43% of highly involved workers do. Constructive criticism is seen to be beneficial in boosting performance by 92% of respondents, and Gallup even discovered that businesses that consistently provide strength-based criticism can lower employee churn by nearly 15%.
This is when the exciting part starts. A survey by Joseph Folkman and Jack Zenger for the Harvard Business Review found that a considerable majority of employees—57 percent—prefer corrective criticism over recognition and praise alone (43%). It’s important to note that nobody in the study expressed a desire for no input at all.
The data demonstrates that everyone is interested in hearing about their performance. When asked what they felt would be most useful in their career, a complete 72% of respondents said they believed receiving corrective criticism from their supervisors would improve their performance.
Accurately assessing employee performance is essential to provide insightful feedback. In this post, we’ll talk about employee evaluations and weigh the benefits and drawbacks of the several techniques HR professionals might use these days.
Why should employers use employee evaluations?
Employee assessments are important for a number of reasons.
- Performance growth: Employees can better understand their performance levels, spot areas for improvement, and get advice from regular reviews. As a result, they are more productive and effective in their positions.
- Alignment of goals: When worker goals are in line with the organization’s overarching goals, there is a mutual understanding of goals and expectations.
- Employee engagement: Studies reveal that motivated and engaged workers are more likely to stay on the job and have higher job satisfaction when they receive regular feedback and praise.
- Professional growth: Evaluations give staff members the chance to talk about their goals for their careers, pinpoint the abilities they still need to work on, and design a plan for progress.
- Making informed decisions: Decisions on promotions, pay adjustments, and allocation of resources can be made using the useful performance data that HR professionals are able to gather and compile through evaluations.
HR advice
The cultures of professional growth, employee involvement, and continual improvement are the foundations of the highest performing companies in the world. Employee evaluations are an essential part of efficient HR administration.
The various approaches to employee evaluation
Several methods for performing employee evaluations have been created throughout the years due to the diversity of organizations, jobs, employee demands, and review objectives. Let’s examine a few of these techniques and weigh the advantages and disadvantages of each.
- The work performance scale
An employee’s job performance can be measured and assessed using a job performance scale, which is a uniform framework that compares the employee’s performance to predefined standards or criteria. It assists organizations and managers in determining how successfully a worker is carrying out their duties, accomplishing their objectives, and making a positive impact on the firm as a whole.
Usually, it consists of multiple performance characteristics or elements that are scale-rated and related to the employee’s position. These include the capacity for effective communication, cooperation, problem-solving, deadline observance, output, and quality of work.
Benefits of using a performance scale
- Consistency and fairness in performance evaluations are enhanced by the use of standardized scales.
- It is possible to apply precise and impartial standards to all personnel and positions.
- Gives managers a methodical way to evaluate employee performance, which makes it simpler for them to give detailed feedback.
- Workers are aware of their areas of strength and growth.
- It is possible to compare an employee’s performance between departments and jobs.
- Leaders can use data to make informed decisions about talent management, pay raises, and promotions.
- Can serve as a foundation for establishing performance standards and goals.
Drawbacks of using a performance scale
- Personal prejudices or subjective beliefs may still have an impact on evaluators, resulting in inconsistent and unfair ratings.
- A strict emphasis on quantitative performance measures could miss the whole range of an employee’s contributions, especially in the case of soft talents like creativity, emotional intelligence, or leadership abilities.
- May fail to sufficiently address the particular characteristics of certain job types or workers.
- Ratings based on numbers may restrict the breadth and value of comments.
HR advice
Although we know that any feedback is preferable to no feedback, it is critical that staff members feel inspired. Never treat a worker like a number. Make sure every comment has meaning.
- The work behavior scale
An employee’s work-related behaviors can be measured and evaluated using a job behavior scale in performance reviews, which helps to move the focus away from task-based results. Job behavior scales are designed to assess how well workers relate to coworkers, solve problems, show leadership, uphold business values, and perform other soft skills that support a productive workplace and the success of the company as a whole.
If an HR specialist needed to gauge traits like initiative, teamwork, communication, flexibility, conflict resolution, and ethical behavior, they would usually opt for a job behavior scale. The job behavior scale is measured on a scale, just like the job performance scale. This could be descriptive (e.g., poor, good, outstanding) or quantitative (e.g., 1–5).
Benefits of using a work behavior scale
- Assessing job behaviors together with a job performance scale can yield a more thorough assessment of an employee’s total value to the company.
- The value of soft talents is recognized and quantified.
- HR specialists are able to assess if a worker is in line with the values and culture of the company.
- Fosters a cooperative and upbeat work atmosphere.
- Can be used to give focused criticism and encouragement for both professional and personal development.
Drawbacks of using a job behavior scale
- Can be far more subjective than evaluating performance based on a task.
- This may result in biased evaluations and inconsistencies that are impacted by individual prejudices or viewpoints.
- It can be difficult to define and measure behaviors because they are frequently intangible and hard to measure.
- Uncertain outcomes can leave staff members unsure on how to get better.
- Labor- and time-intensive in comparison to task-based performance evaluation.
HR advice
Make sure you don’t undervalue the significance of task-based performance or technical abilities by placing too much emphasis on job behaviors. For an employee to be effective overall, a holistic perspective is essential.
- Behavior assessment based on competency
A competency-based behavioral evaluation could be appropriate for a manager who wants to assess an employee’s performance based on how well they demonstrate particular skills or competencies related to their job role.
Both technical proficiency and soft skills, such problem-solving,, teamwork, communication, leadership, and flexibility, are measured by these tests. Evaluating an employee’s skill and behavior alignment with the organization’s expectations and needs for their role is the main objective of a competency-based behavioral employee evaluation.
This kind of assessment uses a scale that compares performance to the manager’s and organization’s expectations. Typical measurements on the scale are “below expectations,” “meets expectations,” and “exceeds expectations.” Additionally, managers can offer qualitative comments to further review the worker’s performance in each area of expertise.
Benefits of behavioral assessments based on competencies
- The importance of both soft and technical abilities is highlighted, offering a more thorough assessment of an employee’s entire performance.
- Workers get a clear idea of what is required of them and how to get better.
- The pinpointing of areas where workers require more help or training supports personalized growth.
- Predefined skills ensure that assessments are fair and consistent across the entire company.
- Workers are in a better position to influence the overall performance of the company.
Drawbacks of behavioral assessments based on competencies
- Evaluations of behaviors and soft skills might be unfair and inconsistent due to subjectivity and personal prejudice.
- Might not be adaptable enough to take into consideration individual characteristics, special work requirements, or changing company needs.
- May fail to recognize additional helpful contributions or skills a worker makes to the company.
- May not offer adequate qualitative comments, which could reduce the evaluations’ depth and applicability.
HR advice
A deep understanding of the job duties and abilities required for success in various roles is necessary for effectively identifying and assessing skills that match company goals. You have a great opportunity to provide your company with real value as an HR expert.
- Psychological evaluations
Psychological appraisals are assessments that concentrate on a person’s psychological features, behaviors, and attitudes in connection to their work performance in the context of employee performance evaluations. These usually look at things like motivation, emotional intelligence, personality traits, cognitive skills, and stress management.
The objective is to obtain a greater comprehension of the psychological and emotional aspects of work that might affect an employee’s productivity, relationships with coworkers, and general well-being. Once this is established, businesses may design work environments that encourage employee engagement, contentment, and retention in addition to customizing training and development opportunities to meet the needs of specific individuals.
Benefits of employing psychological evaluations
- Highly customized and reveal a person’s inclinations, tastes, and behavioral patterns.
- It is possible to quantify and contrast reasoning, problem-solving, and decision-making skills with real-world employment positions.
- Can be quite helpful in figuring out how an employee will react to a particular management style.
- Can assist in identifying both the external and internal motivational aspects of an individual and how these affect job performance.
- Can assess a person’s capacity for stress management and mental health at work, which may aid HR professionals in preventing burnout in their companies.
Drawbacks of employing psychological evaluations
- May probe into intimate details of a worker’s life, posing issues with privacy and possible exploitation of private data.
- Subjective result interpretation raises the possibility of biases and inconsistent results.
- May not always be a reliable indicator of success in a particular role or work performance.
- Workers may experience stigma or unjust judgment as a result of psychological evaluation findings.
- May bring up moral concerns regarding the autonomy of workers, their consent, and the possibility of discrimination based on personality qualities or mental health.
- Psychological exams can be expensive and time-consuming to conduct, especially if they call for the engagement of qualified professionals or specialized assessments.
HR advice
Make sure that psychological evaluations are carried out in accordance with applicable rules and regulations, transparently, and with respect for the privacy of the employees.
- 360-degree evaluations
A 360-degree appraisal’s main objective is to give a comprehensive picture of a worker’s performance, abilities, and habits. 360-degree appraisals collect input from a variety of sources, including peers, direct supervisors, subordinates, and even outside stakeholders like vendors or clients, in order to do this.
As part of the procedure, the employee may in certain situations also perform a self-evaluation. This method helps to minimize potential blind spots and biases that can arise when evaluations are solely based on the perspective of a single individual, such as a direct manager.
Benefits of 360-degree evaluations
- 360-degree appraisals offer a more accurate and comprehensive picture of an employee’s performance, abilities, and areas for growth by combining information from multiple sources.
- A fairer and more impartial assessment results from balancing potential biases or personal ideas with multiple points of view.
- Employees’ growth as individuals and as professionals can be aided by receiving feedback from a variety of sources, which can help them pinpoint specific areas where they can develop and progress.
- The procedure fosters candid communication and a constructive criticism culture within the company.
- Employees can better understand their own strengths and limitations and take more initiative to correct them by incorporating self-assessment into the process.
Drawbacks of 360-degree evaluations
- Can take a lot of time, for the individual doing the results analysis and compilation as well as for the participants.
- A 360-degree appraisal process can be difficult to plan and manage, especially in larger firms where several evaluations must be completed at the same time.
- Employees may find it overwhelming or perplexing to get feedback from several sources, especially if it is inconsistent or contradicting.
- Inadequate management of 360-degree assessments may result in distrust, animosity, or strained relationships amongst team members.
HR advice
If done properly, 360-degree evaluations might be your most effective performance tool. Make sure that no criticism is misconstrued or removed from its context. Rather, make certain that those providing comments do it in an understandable and helpful manner.
Kinds of employee evaluations
- General employee evaluation
What it is: A conventional evaluation when a management or supervisor evaluates a worker’s performance.
When to use it: Depending on your organization’s needs and how frequently you wish to provide employees with feedback, employee evaluations can typically be done annually, semi-annually, or quarterly.
The advantages: If discussing an employee’s strengths, shortcomings, and opportunities for development is the aim of the assessment, then it is a helpful tool.
- 30-60-90 day employee evaluation
What it is: a formal procedure for evaluating employees that is usually applied to new workers during the first 3 months of their employment. Employees who have recently been promoted can also use it.
When to use it: Upon the hiring of a new employee. During the first onboarding and integration phase, this review’s objectives are to evaluate the employee’s progress, provide feedback, and establish expectations at predetermined intervals.
The advantages: This procedure guarantees a more successful and seamless onboarding experience. Because onboarding often sets the tone for an employee’s experience at a company, it also increases employee longevity.
- Evaluation by peers
What it is: An employee’s performance is the subject of feedback from colleagues.
When to use it: To monitor the development of a project team. It works best when utilized to get a thorough grasp of each project participant’s efforts and areas for growth, paying particular attention to each person’s performance, teamwork, and communication abilities.
The advantages: Peers may see things that a manager might miss because they frequently view an employee’s work from a different angle. This can be a useful tool to help a team work more efficiently and effectively so they can meet deadlines and project goals.
- Objective-based evaluation
What it is: An evaluation that compares a person to departmental or organizational targets, or to personal goals established by the worker and their supervisor.
When to use it: When evaluating an individual’s performance in relation to certain, predefined goals or targets, an objective-based assessment should be used to find areas for growth and to determine the individual’s success in reaching the desired results.
Advantages: Greater motivation, less bias, greater efficiency, goal-setting opportunities, measured results, clear expectations, and improved communication between evaluators and employees.
- Employee self-evaluation
What it is: Workers are asked to assess their own work, typically by writing a reflection on their job or filling out a questionnaire.
When to use it: When motivating staff members to consider their work, achievements, and areas for development, self-evaluation templates are a good tool to have.
The advantages: The ability for staff members to take charge of their professional growth and recognize their strengths and shortcomings. Employees who self-evaluate are more inclined to communicate with managers and supervisors and accept accountability for their work and accomplishments.
Checklist: Recommended methods for preparing and performing employee evaluations
Use this helpful checklist as a reference while choosing, customizing, and executing employee evaluations as an HR expert.
- Have you explained the evaluation criteria in clear terms? When managers and staff are aware of the goals and expectations of the evaluation process, all evaluation assessments are more likely to be effective.
- Is the evaluation procedure transparent and equitable throughout? Building trust, promoting candid communication, and making sure staff members feel appreciated and encouraged in their professional growth are all crucial.
- Have you stated your expectations clearly? When an worker knows what is expected of them, assessments have a considerably greater effect on shaping future behavior.
- Have you created an organized framework that enables regular performance reviews? Regular feedback is intended to foster consistency, which will improve comparisons and allow for the tracking of employees’ growth over time.
- Does feedback highlight areas that need work as well as strengths? Workers can only increase their output if they are aware of both their areas of strength (and how these contribute to organizational goals) and need for improvement. Highlighting positive traits also raises spirits.
- Do workers contribute to the process of evaluation? When an employee feels empowered and invited to participate in the process, their evaluations have much greater meaning. This guarantees a more thorough understanding of their work and growth requirements.
- Is criticism from earlier assessments looked at? To pinpoint areas that need work, go over the comments from earlier evaluations on a regular basis.
- Are assessments connected to career advancement? Connecting evaluations to career growth encourages people to do better, helps keep top talent, and synchronizes their goals with those of the company.
- Do assessments serve as a tool for finding opportunities for growth and learning? If learning and development objectives are connected to assessments, they will be far more successful and focused.
- Is performance of employees being tracked over time using data? Applying data makes it possible to evaluate performance objectively, monitor growth, spot trends, and guide focused development plans.
- Are assessments kept private? Confidentiality promotes trust and upholds a polite work environment, in addition to being essential to safeguarding employee privacy and making sure local laws are followed.
HR advice to assist managers in carrying out a successful employee evaluation
As an HR specialist, you are important in creating effective employee evaluations and assisting managers and staff to maintain the objectivity and value of employee evaluations.
The following are some important pointers to remember:
- Encourage career growth and employee involvement by using employee evaluations as an instrument for performance improvement rather than merely a formality. Help executives use employee evaluations as a tool for improving performance.
- Encourage professional growth and staff involvement. Talk about upcoming aims and chances for professional growth that fit the interests of the worker and the goals of the company.
- Maintain fairness and consistency. Assist managers in eliminating prejudice from employee evaluations and make sure they refrain from drawing comparisons between workers. Discussing performance difficulties should also center on behavior rather than personality.
- Make the evaluation worthwhile. Assist managers in giving thorough, useful feedback.
- Be ready. Urge managers to thoroughly prepare by going over the job description, previous assessments, and the employee’s most recent achievements.
- Establish a good atmosphere. Feedback sessions and assessments have to take place in a setting that encourages candid and open communication. Additionally, managers can promote two-way communication by paying attention and posing open-ended questions.
- Give specifics. Employees will understand how the criticism they are receiving connects to their performance, work requirements, and career growth when managers use specific scenarios to clarify points rather than making generalizations.
- Balance criticism with acknowledgement of accomplishments and strengths. Constructive criticism and practical recommendations for improvement should be expressed while acknowledging the importance of the worker to the company.
- Put the procedure in writing. To keep track of developments and ensure responsibility, write down the evaluation’s main findings.
- Maintain consistency. Regularly check in to see how things are progressing, offer continued assistance, and handle any issues that may come up.
To sum up
As this article has made clear, HR managers can customize a wide range of employee evaluation forms and tests to meet the specific demands of the company.
The best assessment method will depend on the needs of the project or the organization, and you will be important in determining what is best. When evaluating and choosing the most effective strategy, keep things like personnel dynamics, corporate culture, and objectives front and center.
You can help your company drive performance, foster employee growth, and ultimately ensure a flourishing and successful workforce that is prepared to meet the challenges of a constantly changing business landscape by carefully choosing and putting into practice the most appropriate employee evaluation method.
