Performance evaluation contributes to companies' talent strategy.
Performance evaluation is the set of actions that are carried out to measure the performance of a worker or a team in a company . It is a systematic and structured process that allows analyzing the behaviors, competencies, skills and results of employees.
It is useful to go to the dictionary of the Royal Spanish Academy ( RAE ) to precisely understand the meaning of the concept. Evaluation is the act and result of evaluating: appreciating, evaluating, calculating. The idea of performance , meanwhile, refers to the exercise of a function or the representation of a role. When someone's performance is evaluated, therefore, a judgment is made about their work.
Features of performance evaluation
Performance evaluation is a resource that serves to gain knowledge of the status of individual and group objectives at work . It also provides information about the needs and interests of employees.
It is important to indicate that performance measurement is carried out regularly. The procedures applied not only serve to evaluate the achievement of goals, but also provide valuable data on the weaknesses and strengths of each worker and open the door to feedback that favors professional growth.
By examining various parameters, it is possible to know precisely whether each individual is fulfilling his or her job duties as appropriate to his or her training and position. This tool also helps to understand if it is necessary to improve staff training or if changes have to be made to it. It may also reveal the need to work on motivation or modify human resources policies.
Work environment surveys can be part of the performance evaluation.
The methods
It is possible to use different performance evaluation methods. The evaluation method by objectives is the most common: goals are set in line with the company's objectives and the progress of work in that line is examined. The goals must be concrete and the evaluation must be based on statistics and not on subjective opinions.
The pair comparison method , meanwhile, is developed from anonymous contributions from co-workers, who make known their view of the evaluated subject. The competency evaluation method , for its part, studies the employee's knowledge and skills and compares what is observed with the capabilities that are considered essential for the position.
Another possibility is performance evaluation in critical incidents : what is inspected is how the individual behaves in exceptional situations, judging their reaction. Performance testing , rating based on behavior , and evaluation based on employee satisfaction are also among the most widely used methods.
The performance evaluation analyzes the creativity and adaptability of workers.
Types of performance evaluation
Performance evaluation can be developed in different ways. Depending on how it is carried out and what is evaluated, the process is qualified in different ways.
The 360-degree evaluation uses feedback from bosses, colleagues, subordinates and other sources, which makes it possible to obtain a comprehensive picture. If the evaluation is 270 degrees , it focuses on the team members, while the 180-degree evaluation is built with the data provided by superiors and direct subordinates. There is also the 90 degree evaluation , which is done by managers.
The evaluation by graphic scale consists of granting points in different variables (quality, productivity, teamwork, etc.). This contributes to the appreciation of capabilities in the work environment.
It should be noted that a very common type of performance evaluation is self-evaluation . In this case, the worker is asked to analyze his own level according to certain criteria. It is interesting to analyze the disagreements between the employee's subjectivity and what was evaluated by a supervisor or manager.
Your benefits
Performance appraisal offers multiple benefits. Its development allows us to detect the strengths of the staff and identify which aspects can be improved. In this way, professional development is favored.
Another advantage is that it contributes to achieving fluid and constructive communication between supervisors and workers. With this feedback, the work bond is strengthened and commitment is reinforced.
A performance evaluation also serves to make decisions and resolve problems linked to the organization's human resources. Knowing the factors that affect employee performance and well-being is very important.
Performance appraisal software
There are tools and technologies that facilitate the analysis of work skills and that allow measuring the productivity , efficiency and effectiveness of workers.
Performance evaluation software is a computer program that provides data on the performance , skills and competencies of each worker. With its indicators and metrics, this software favors HR analytics.
These programs help with continuous evaluation , offering data in real time. In the same sense, they provide continuous feedback .
Tips for your development
Respecting the fundamentals of performance evaluation is key for the process to be successful. The purpose is to improve labor relations and enhance the organizational culture to achieve optimization of the general functioning of the organization.
The idea is not to increase job stress with structured or informal interviews. The worker must be clear that evaluation is an instrument to improve and obtain recognition .
Employees need to feel part of the performance evaluation and understand how they can benefit from it (linking it to a system of incentives and rewards , leading to training and education proposals, etc.). For the company, the evaluation is useful when designing retention strategies, minimizing the turnover rate , to mention one possibility.