The vast majority of performance In general, most people believe that these evaluations only serve to monitor their activities, rather than evaluate their actual performance. During the performance appraisal process, management and employees meet to discuss the employee's performance and the achievement of their goals. These can take place on a monthly or quarterly basis, with the aim of improving performance and correcting points of failure. Whether it's an individual conversation or a team meeting, the appraisal is a fundamental component of the company's goal management.
If carried out correctly, performance appraisals can help employees to motivate themselves and become increasingly involved in their projects. If carried out the wrong way, they can cause people to become demotivated, reduce their performance and perhaps realize that the job or the company is not in line with their professional goals. Appraisals give managers the opportunity to see what the person is doing right and what can be improved. The aim of the performance appraisal is to assess expectations and help the employee to be more successful in their job.
During the appraisal, the manager goes over with the employee the achievements made during the period, as well as their contribution to the company. One of the main objectives and benefits is the exchange of information and feedback, where the employee also has the opportunity to ask questions and share feedback with the leadership. Evaluations can also cover other subjects such as:
- Growth in the company and career development;
- Challenges of the position and/or area;
- Alignment with organizational goals;
- Changes or messages from the board;
- Recognition;
- Feedback from the team.
Talking about performance can be very stressful for everyone involved, with it being difficult for managers to give feedback and even more difficult for the person to receive it. The way companies and HR teams handle appraisals is fundamental to employee engagement and the employee journey. So an open, honest, data-driven dialogue helps build trust between managers and employees.
What are the benefits of a performance appraisal?
For the HR team, the main benefits of performance appraisals are to develop a healthy relationship between the employee and the company, focusing on improving weaknesses with training and assistance, while enhancing strengths. The benefits can be applied to three fundamental pillars: the appraiser (manager or HR team), the appraisee and the company.
Benefits of the appraisal for the appraiser: Greater control and monitoring of activities for the role, such as what improvements can be made to the work process, as well as gaining new insights into how each activity can be improved (from an operational point of view). Another benefit is closer management, using a variety of tools to understand how targets are being met and what the next stages of growth are for the employee within the company;
Benefits of appraisals for the appraisee: Evaluations serve to give employees a better understanding of how their work is being carried out, whether any processes need to be modified or whether each deliverable is achieving good results. This monitoring gives them a better understanding of how their activities contribute to the company's growth.
Benefits of evaluation for the company: It serves to identify points for improvement for each function, as well as being useful when developing a career plan for each team and/or position; however, the main benefit is to get each employee engaged on the basis of an objective and motivating evaluation.
For managers, performance evaluation also serves to optimize other indicators such as:
Increasing productivity - It is possible to improve a person's performance by addressing the main aspects for improvement in the job. If an employee's productivity is lower than expected, a performance appraisal is where a manager can tell what exactly is needed to meet expectations;
Identifying errors - Mistakes are normal, but with a performance appraisal, you can identify the problems and resolve them. Another positive point is that together you can find a solution to prevent these errors from occurring again in the future.
Setting goals - In the appraisal, it is also possible to discuss which goals the employee should achieve in a given period, as well as the employee themselves choosing which goals they want to work on (based on their previous performance or the company's needs).
What to include in a performance appraisal?
Regardless of the sector, clear and objective communication helps people stay focused and motivated. We've listed a few items below that can be included in most appraisals:
- Communication;
- Collaboration and teamwork;
- Troubleshooting;
- Quality and precision of work;
- Service, punctuality and reliability;
- The ability to meet targets and deadlines;
It is also possible to include job-specific competencies in the appraisal, as well as the employee's achievements and contributions to their job or to the business. Although performance appraisals usually take place once or twice a year, feedback should not be limited to these short periods. So here are some other tips to add to your appraisals:
Provide regular and informal feedback - Organize a regular schedule and set the expectations and tone of the meetings. Use this time to clarify any doubts about expectations and goals. Even in companies with open communication, performance appraisals are useful for more specific conversations about a particular subject or even a career plan.
Be honest - Nobody is perfect and there is always room for improvement. Decide what is worth addressing and don't hesitate to mention it in the evaluation. If there are any problems among the team, provide feedback in an appropriate manner. Be clear about what is expected of the person and also ask how much the employee expects from the company and the leadership.
Use tangible and relevant examples - When talking about improvements or items that an employee has made, make sure you have clear examples to refer to. Using examples makes it easier for people to understand what they need to improve for their personal and professional growth.
Always end the evaluation with a positive comment - Use the evaluation process as an opportunity to set achievable and specific goals. Make the person feel that there is a plan of action, with clear objectives for improving their weaknesses. Encouraging people lifts their spirits if the evaluation was more negative than positive. Constructive feedback helps develop trust between management and employees.
Types of performance evaluation
Different types of evaluation help to identify different aspects for improvement, check out the main ones:
Nine Box or 9Box Matrix: Analyzes the difference between current performance and the employee's expected result;
Self-assessment of performance: Each person evaluates their own performance and behavior at work;
Team evaluation: Similar to the self-assessment, this involves the whole team getting together and checking how the results presented were and what points need to be improved;
Performance evaluation 180: Allows manager and employee to analyze issues together;
360° performance evaluation: This is carried out on the basis of a self-assessment combined with the opinion of everyone on the team. This can include managers, colleagues and, depending on the case, even suppliers;
Competency-based assessment: This is the analysis of the employee's performance in relation to what the company expects from someone occupying their position. Two types of competencies are covered, one being behavioral and the other the technical competencies of the position;
Evaluation by objectives: Unlike the other evaluations, this one focuses on a series of goals to be achieved within a certain period of time;
Graphic scale: The evaluation takes place by means of a columnar form, which assesses at what level the evaluated employee meets each variable (very bad, bad, fair, good or excellent), or the leadership's perception of them (satisfied, indifferent or dissatisfied).
Evaluation by the leader: The employee is analyzed directly by their manager, who monitors their tasks on a daily basis;
Goals and results: This evaluation is based on a quantitative analysis of the results delivered in recent months by the employee;
The most appropriate method for the business will depend largely on the variety of different functions within each area, the time available to invest in the evaluation process and the objectives.
What to do after the performance appraisal?
Once you've covered the main areas of assessment, you need to evaluate each one to get a picture of the employee's overall performance. After the evaluation, discuss your findings with the company's leadership. Provide transparent feedback, with examples (where appropriate). Regardless of which type of performance appraisal you choose, the important thing is not to ignore the importance of fair and constructive feedback, whether positive or negative. This is the simplest and most objective way to help your team improve their characteristics.
