What (Definition)

Performance evaluation is an ongoing operation between the employees and the company. Providing feedback from time to time will help the employees develop their skills and ensure that they are in line with the company's goals.

The employee’s performance is assessed from the day he or she entered as an interviewee. The candidate with a satisfactory performance gets selected out of all the applicants from the interview. Then, the first performance evaluation of the employee will occur at the end of the probationary period. 

The process of assessing employees’ work performance can be done quarterly. Semi-annually or annually. The period varies depending on the company’s working style and culture. During the performance evaluation meeting the employee’s strengths, weaknesses, and the areas to develop are discussed.

Why (Benefits)

Regular performance evaluations can bring numerous benefits to the company and the employee. As a company, we can communicate our expectations from the employees; this reduces the conflict at the workplace and ensures the right work is extracted from the workers.

he employee understands their strengths and weaknesses by receiving feedback which can be helpful in their professional and personal lives. Receiving positive comments from higher officials can motivate the employees, and this pushes them to work better in the future.

Conducting performance evaluations will help identify the need for training and development programs. It helps to develop the employee’s weaker areas and contribute well to the company’s future goals.

Assessing performance helps with the bonus, promotion, and salary increment plans. Well-performed employees can be awarded with these, and this will boost their employee morale and keep them loyal to the company.

How (Calculation)

It is vital to conduct the performance evaluation fairly throughout time, as it will help recognize the talents so the company can retain the performing employees. Recognizing talented employees can increase the productivity of the whole working force, eventually contributing to the company’s efficiency and effectiveness.

The performance evaluation chart can be designed by following the below steps. The HR personnel will be working closely with the in-line manager to extract the performance evaluation data.

1. Performance data: Performance evaluation data can be taken from self-assessment, peer assessment, and the manager’s evaluation.

2. Performance category: The common performance measurement is the key performance indicator (KPI), and other aspects are job role-oriented, competencies, and skills-based performance. 

3. Rating: The rating will be given in numbers from 1 to 5, and on the other hand, there are descriptive scales: excellent, good, satisfactory, and unsatisfactory.

The companies can use qualitative measures, quantitative measures, or a combination of both to assess the employee’s performance. An example of a qualitative measure performance evaluation is shown below.

The employee Adam’s performance evaluation data is shared above. He has excellent skills in teamwork, integrity, and peer relations. He is good at quality of work, communication, and customer relations. Consistency, initiative, creativity, technical skills, and attendance are satisfactory. The only unsatisfactory skill is the employee’s punctuality.

Now Adam understands that he needs to present himself punctually. He could also work on his satisfactory skills to become excellent. He also should pay attention to maintaining his excellent skills at an excellent level.

Regularly evaluated performance should be maintained in structured data. It is important to document the performance evaluation data to bring out the best from the employee. Performance evaluation is not just for the employees but also for the company itself. The company can make strategic decisions by considering the employees’ performance.

Apart from these HR Managers can use Early churn%, Time to Productivity, 1st year Performance satisfaction to measure the Quality of Hires.

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