According to Chiavenato , “Evaluation is a systematic appraisal of the performance of the individual in the position and of his/her development potential”.
In other words, performance appraisal is an assessment that companies carry out to determine the work performed and the results obtained from their employees.
With the maturity of the human resources sector and the understanding that employees are the most valuable asset of the business , Performance Appraisal has gained a more strategic and analytical profile.
Today your results can even be taken into account when promoting, warning or dismissing someone.
In addition, the tool provides inputs for the company’s directors to make strategic and economic decisions.
For example: by having the average performance and motivation of professionals in hand, it is possible to predict, in the strategic planning, whether to achieve the stipulated goals it is necessary to invest in hiring or if any adjustment in the staff should be made.
With a relevant impact on the company’s production, economy and routine, a well-done performance evaluation and analysis of its results are crucial for the success of the business .
There are, however, several ways of executing and applying this tool. Therefore, further on you will see everything about 360º, 180º, 90º performance evaluation and others.
How Important Is Performance Appraisal?
Companies with mature people analytics strategies have, on average, according to a survey by Visier , a 56% higher profit margin than companies that are starting to develop this technique. In addition, they have a 22% higher return on assets .
While businesses that analyze employee performance data are proven to be more successful, only 4% of companies actually invest in this area .
One of the explanations for this low adherence is the thought that structuring an analytical HR is expensive and takes time to pay off.
The new era of performance appraisal demystifies these two statements, proving to be a simple, quick and inexpensive way to start collecting employee data.
Through software, forms or the good old talk, it is possible to gather various information about a professional’s performance in order to improve their productivity and engagement in the business.
And it never hurts to remember that greater engagement brings relevant financial returns to the business. Research published in the Journal Of Applied Psychology, for example, showed that teams with the highest engagement rate earned between $80,000 and $120,000 more revenue than less engaged teams .
Furthermore, performance appraisal responds to a human need. Because it serves both for the company to help engage employees, understanding their points to be improved and valuing their achievements, and for identifying areas that need to develop better engagement strategies.
In Addition, Other Benefits Of Performance Appraisal Are:
Correct quick misconduct;
Appreciate good work;
Understand each other’s weaknesses and strengths;
Give guidance to the employee;
Increase the business ROI in terms of hiring;
Decrease turnover ;
What is evaluated in the performance evaluation?
There are two main fields of evaluation in this tool: behavioral and technical.
In the first one, the so-called soft skills are evaluated , such as interpersonal relationships, ability to work in a team, response to feedback, ability to challenge oneself, behavior in general.
The second is aimed at the technical skills of the person within the function he performs.
In order to avoid deviations and maintain uniformity in all performance evaluations, the ideal is to list the items to be evaluated in each of these fields .
If innovation is important for the company, for example, in soft skills, the ability to innovate, curiosity for novelties, whether the person usually looks for new ways to solve problems, is creative, shares ideas and contributes to building solutions together, etc.
The same process must be done for technical skills, or hard skills. If the content team is being evaluated, for example, it is possible to list the textual capacity, original writing, obedience to the cultured norm, clarity, objectivity, coherence and cohesion as factors to be evaluated.
The important thing is, within these two spheres, to list the same evaluation points for the same team .
There are companies, however, that maintain standard questions for all areas, such as “does the employee meet technical expectations”, in which case, it is important that the person evaluating knows exactly which skills to consider and maintain the same standard of analysis for all employees. evaluated.
Main performance Evaluation Methods
The performance review should preferably be done on a quarterly basis, so it does not overwhelm assessors or allow for a snapshot, rather than an actual assessment — whether done annually or semi-annually, assessors tend to take recent events into account, which can culminate in deviations.
In addition, if the time between evaluation cycles is long, the necessary changes take time to execute, harming the operation.
Now that you know when and which performance appraisal model to choose, let’s get to the how. Usually this tool is presented in the form of questions and answers about the points to be evaluated. The form can be applied virtually or answered in person, in the case of 180º assessments.
The important thing is to make sure that the questions are equal, clear and not misleading . Therefore, the ideal is to test the questionnaire before applying it in a mass way in the company. Today there are software that cyclically run the performance survey, generating automatic graphs, guaranteeing anonymity when necessary and reminding the employee to respond to the evaluation.
In this way, the application, the measurement of results and the structuring of continuous feedback are facilitated .
The questions ask for discursive answers from the evaluator. This form is less practical, but it is the simplest to understand the real view of the person being evaluated. In it, those who are answering the questionnaire can express their opinion in the best way. The questions are presented like this: “How do you evaluate the technical performance of So-and-so? Explain why”
Here the evaluator needs to choose one of the predetermined answers to different questions about the evaluator. For example: “How do you rate so-and-so’s commitment? ( ) could improve ( ) good ( ) very good”
As the name implies, the evaluator will need to give a grade within a numerical scale to the person evaluated according to the question. Example: “How do you rate So-and-so’s teamwork? 0 being very bad and 5 being very good. ( ) 0 ( )1 ( )2 ( )3 ( ) 4 ( ) 5”