performance appraisal of employees

How should a company carry out performance evaluation of employees?

Performance evaluation is quite important for an organization. The company measures whether it can improve the results of the business depending on how employees are performing.

It’s important to check that there are right standards on which performance appraisal is carried out.

If an employee’s performance is not done as per right standards then the evaluation results can discourage them.
Define standards for every individual job role
Business objectives have to be defined carefully. For example, every role does not have the same objective that the business has to flourish. For example, if someone is in a role requiring customer interaction, then the standard would be what the length of the call was. The call retention rate is important in this case, that how many times, the customer didn’t hang up.
Another example is of someone who is into sales. Every salesperson gets leads from the marketing people. So, it’s important to check how many times, the salesperson can change these leads into actual customers. This is the standard of performance appraisal adopted for them.
Hence, there might be different expectations for every job role, according to which performance appraisal needs to be done for that role.
Check the existing performance appraisal system
The employee performance appraisal system has to be rectified if it exists previously. The existing performance appraisal system needs to be checked based on the following factors:

  1. The rate at which employee evaluation is done
  2. Whether the standards are right for which performance appraisal is done
  3. Whether any human bias can alter the ratings for an employee
  4. Whether any action can be taken for the feedback given to employees
  5. Whether any kind of performance appraisal will result in a change of performance for employees

You would like to create a system that is equal for everyone. So, no one should feel any bias is there while checking their performance. This is how you can create a system that provides righteous performance appraisal for everybody:

  • There should be parameters set to measure the performance.
  • The data about the performance of an employee should be collected from his managers and coworkers.
  • There should be a non-subjective feedback format on which every manager can respond easily. It should also be shared privately with the employee.
  • There should be rewards given to employee based on the positive performance feedback.
  • A methodology should be designed for employees whose performance is not on par with other employees. This methodology should include an initial warning to the employee, and if it does not work out then firing the employee.

The company would like to initiate a rewards-based structure for the over-performing employee which is as follows:
This reward structure should include features such as

  • A performance bonus if the employee has been performing well
  • Hike in salaries so that performance of the employee is at a good level
  • A promotion if required to incentivize the employee

This is how companies can carry performance appraisal. But they can also make sure that the employee performance is improved through a learning management system. This learning management system can provide training modules for employees to improve performance. The LMS can also be linked with the Human resource information system so that the HR’s of the company can help in deciding which training modules for needed for which employees to improve performance.

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