What is a performance evaluation?
The job performance evaluation is a very useful tool for companies, as it allows managers and Human Resources to know how their employees are working and what are the problems within the organization. It is mainly used to measure the performance of an individual in an organization or company, reward and recognize employees who perform exceptionally well, improve the performance of employees who are below average, and identify poor performers so that they can be counseled or provided with training to improve their performance.
Objectives of a job performance evaluation
Objective 1: to evaluate an employee's performance
One of the primary objectives of performance appraisal is to measure an individual’s performance in relation to his or her goals, expectations and aspirations for self-improvement, as well as to gauge the broader objectives of the organization. For a performance appraisal to be effective, it is important that the objectives of the organization and the employee are aligned.
It is important that the performance evaluation is effective because it will not fulfill its purpose if the employee’s and the organization’s objectives are not aligned. You can use methodologies such as Objective Key Results (OKR), which allow you to evaluate the employee based on his or her objectives on a regular basis.
Objective 2: provide feedback
A performance appraisal seeks to promote a space for feedback to be shared, in order to develop talent and positive leadership and thus generate Champion Minds. This feedback should not only come from the employee, but also from those who work closely with the employee on a daily basis, such as colleagues and supervisors.
For feedback to be given effectively, it must be objective, specific, honest, respectful, and looking for ways to improve versus remaining in error. This feedback must come not only from the employee, but also from those who work closely with the employee on a daily basis. This objective data is designed to provide greater insight and understanding of strengths, feedback should be geared toward generating resilient minds and champions, and continuous improvement (Kaizen) as well as areas for improvement.
Finally, a feedback loop provides an opportunity for the employee and the leader to discuss the most important objectives and challenges in order to establish priorities and an action plan to achieve the company’s goals.
Objective 3: design a training plan
Once organizational objectives and employee performance have been identified through performance appraisal, we can identify opportunities to create a training plan to develop different employee competencies that are key to achieving the company’s objectives and goals.
Training plans can include individual coaching sessions, as well as group seminars on various topics related to work improvement, all aligned with the needs and expectations of managers/supervisors on how their team should improve.
The goal is not only to increase productivity, but above all to create an environment in which everyone feels confident enough to contribute their opinion and learn new things at the same time. In addition to soft skills training, the training plan can also include provisions to enhance the use of technological tools, such as Chvmpion Mind Technology, and improve industry knowledge.
Objective 4: Motivate work teams
Motivation and recognition of employee success is one of the main drivers of motivation according to Maslow’s hierarchy of needs. It can be a very powerful tool to motivate and inspire people, complementing salary improvements, training programs or promotions with other recognition tools such as certificates, award ceremonies, tributes, etc.
A good performance appraisal system can also include objective observations on how the employee is progressing in his or her work and the objectives achieved individually, as well as those of the work teams.
If you want to motivate your employees, start by recognizing them for their achievements and use objective feedback to help them grow and develop.
Objective 5: to assist in making decisions on compensation, compensation and promotions
To maintain a healthy organizational climate and retain the best employees, you can implement a results-based compensation plan and a career plan where every employee has the opportunity to develop within the organization. And a personal suggestion, also incentivize employee wellness. It is not enough to provide them with resources, because just as companies seek the incentive of continuous improvement, personal well-being should be among those incentives.
Performance appraisal allows us to obtain feedback from employees to create a performance plan that is objective, fair and equitable. In this way, objective performance criteria can be identified to help us set compensation and promotion levels.