Objective and applications of employee performance evaluation in a company

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While most employees don’t particularly look forward to performance and appraisal reviews from their employer, they can be incredibly useful. And that’s because the goals of performance appraisals go beyond improving performance. They can also be surefire ways to set employee goals, decide who gets promoted, among other business objectives. So, when conducting a performance appraisal, keep in mind the objectives and applications that will help you get the most out of the process…

Objectives and applications of evaluation and performance

“The secret of a great achievement is not in the talent of the person but in the structure he or she has relied on to achieve it.”

José L. Meléndez CEO of ChVmpion Mind

1.Helping employees set goals

One of the most important goals of performance appraisal is to help employees set goals. Employees need to know what you expect them to do or improve, whether the goals are customer service, operations or professional development oriented. It is also beneficial to write an execution plan to help your employees meet and exceed their own objectives. So, to ensure optimal success, should these objectives set be specific, measurable, achievable, relevant and timely? Yes, and if possible according to the (SMART) methodology. A SMART objective related to professional development, for example, might be to attend a certification course in the next six months.

2.Motivate high-performing employees

Appraisal and performance allows you to effectively communicate what superior performance looks like (whether it’s short service call resolution times or speed of reaction in a crisis) and how employees can do better. This way, employees have something to aspire to. Especially since most people want the raises or promotions that come from good performance. Also, they will look for examples in their own work once they know what high performance means. This communication that is fostered from performance appraisal will allow employees to feel motivated and work more focused to achieve their personal goals and the overall objectives within the company. Nowadays, approximately 86% of companies have employee recognition systems, through incentive systems. Did you know?

3.Counseling underperforming employees

One of the most important objectives of an appraisal and performance evaluation is to counsel employees who do not meet the company’s standards. As it turns out, performance should not only be rewarded when it is high, but should be treated with special attention when it is low or poor. An underperforming employee may not have set goals or may need to better understand the expectations of his or her position.

As a company manager, working with them to find out why their work is unsatisfactory and formulating an action plan to help them improve is critical. Underperforming workers should not be discarded, they should be subjected to an improvement plan that will bring their quality of functions up to par with others. In this situation, be sure to point out the employee’s strengths and weaknesses, so they are confident that they have what it takes to do their job successfully.

4.Support salary increases and promotions.

Many companies already link an evaluation and performance to salary increases and promotions. Since, salary is often aligned with employee performance. Taking the time to measure how an employee is doing (e.g., whether or not he or she has met last quarter’s goals) makes it much easier to determine how much his or her salary will increase or whether he or she is ready for a promotion.

A performance appraisal also allows you to identify which team members tend to outperform others in terms of consistent, high-quality work and the desire to continually improve. A performance appraisal allows the measurement of an employee’s capabilities and with it, fair treatment in terms of salary and rank within the company.

5.Plan new hires with performance appraisal and evaluation

Do you conduct regular, ongoing performance appraisals and notice a common theme, such as employees not giving enough? Then you can make the case that action needs to be taken. First, find out which departments are well staffed and which ones need more talent to help get the job done. You can even collect hard data on departmental performance to include in the hiring process. A performance appraisal also helps you identify those employees who are unfavorable to your organization. Likewise, those who have the potential to move up the ranks or even be a benchmark for future hiring. Sometimes quiet people have many impressive ideas waiting to be discovered. Pay special attention to the performance evaluation you perform within the company, you could be discovering raw gems to accelerate and drive the evolution of your organization.

6.Appraisal and performance improves organizational performance.

With a strong performance and appraisal system that is organized and consistent across departments, you can instill the importance of superior employee performance. This synchronization improves productivity and profitability. A shared online workspace allows you to collaborate with colleagues and employees, through online forms, reports, applications and charts. All this, so you can ensure that your employees stay on top of assigned projects and agreed performance evaluation targets.

7.Determine overall training needs

Part of the appraisal and performance process is to determine which employees need individual training, how to track their progress, how effective current training practices are, and how much they will cost. Consider organizing group training for your finance team led by members of the IT department. There’s nothing better than hiring a business coaching system. ChVmpion Mind is an unbeatable option that will not only help you to overcome languor and demotivation within the body of employees and leaders of your organization; it will also allow you to measure the ROI or return on your investment in a quantitative way. That is, you will know exactly how much money you spent and how much money has paid off in terms of the investment made.


The training offered by ChVmpion Mind is a perfect opportunity to measure the talent, performance and commitment of your employees and leaders. You can opt for the 21-week plan offered by the platform, through which you will be able to monitor the work done week by week and the personal and professional progress of those who have accepted the challenge. As you can see, ChVmpion Mind is much more than business coaching

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