How to do employee performance evaluation

How to Evaluate and Track Employee Performance

Are you looking to improve your company’s productivity? One effective way to achieve this is by conducting regular employee’s performance reviews. Not only do these reviews benefit the employer, but they also help your crew track their progress and identify areas for growth. In this blog post, we’ll explore the benefits of employee performance reviews and share some of the best methods for evaluating and tracking employee effectiveness. Get ready to take your business to the next level!

According to the PriceWaterhouseCoopers, 60% of employees want to receive feedback on their work once a week or more. The Gallup report shows that the productivity of teams and managers who receive positive feedback increases by up to 12.5%, and the percentage of good specialists leaving such companies is lower by 15%.

Unfortunately, the theory goes in different ways with practice.

Although as many as 98% of organizations admit that performance management is essential (ClearCompany), only 5% of managers believe that their companies do it well (TruQu). Every third employee using OfficeVibe admits that they wait at least three months for feedback from their supervisor. How to change it? Ask for continuous feedback and make best business decisions based on performance appraisals.

We’ll show you how to do it.

What Is the Purpose of Employee Performance Evaluation?

In short, the answer is as follows:

  • Improving communication within the team
  • Optimizing the organization’s resource management
  • Planning employee development
  • Comparison of personnel for internal purposes

Recognizing the significance of performance evaluation for organizations is essential.

Review process evaluates an employee’s job productivity, offering constructive feedback on areas that require improvement and their strengths and weaknesses. It sets clear employee expectations and objectives, serving as a basis for determining rewards such as promotions, bonuses, or salary increases.

Furthermore, performance review identifies employees’ further training and development needs, which is crucial for their growth and development. It also helps make informed decisions about disciplinary actions or terminations if required. Ultimately, the evaluation process benefits employee development and supports the organization’s goals and objectives.

Speaking of companies, let’s see what they can gain from employee reviews.

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Benefits of Employee Performance Evaluations for Employers

In general, employers use performance reviews to manage their workforce better, boost employee productivity, and foster employee growth and development.

Establishing Clear Expectations

Ongoing feedback provides team members with a clear understanding of their job description, duties, assigned tasks, and goals, helping to set expectations and promote improved performance.

Identifying Areas for Improvement

Well crafted performance evaluation process helps employers pinpoint areas where additional training or support may be necessary, ultimately enhancing their skills (both soft, like communication skills and hard) and overall job performance to boost an employee’s career.

Supporting HR Decision-Making

Honest feedback throughout the year (as well as during annual reviews) regarding each employee is essential in providing critical information that helps determine whether to promote, transfer, or terminate a specific individual.

Facilitating Communication 

Performance review process may help companies facilitate transparent communication between managers and staff, fostering stronger working relationships and enhancing job satisfaction as well as employee morale.

Aligning Goals 

Evaluation reviews are vital in maintaining a shared vision and direction for the organization. We can work collaboratively with management and other team members toward achieving our shared success by aligning individual employee goals with the organization’s objectives.

Encouraging Leadership Skills

Evaluations help identify future leaders and areas where employees can benefit from professional development opportunities, improving their leadership qualities, skills and knowledge and benefiting the organization.

Increasing Employee Engagement

Employees who believe that the evaluation method is fair and consistent, tend to be more engaged and motivated in their work.

Review process evaluates an employee’s job productivity, offering constructive feedback on areas that require improvement and their strengths and weaknesses. It sets clear employee expectations and objectives, serving as a basis for determining rewards such as promotions, bonuses, or salary increases.

Benefits of Employee Performance Evaluations for Employees

Giving performance evaluations to employees is important because it offers them helpful feedback, chances for improvement, and can boost their job satisfaction and motivation.

In a well-managed company, the organization’s success equals the employee’s success. Therefore, many benefits for the staff coincide with those that the company can achieve thanks to evaluation reviews. Here are a few more listed below.

Targeted Feedback

Performance reviews provide employees with valuable feedback on their performance, including areas where they are excelling and areas where they can improve. This feedback can help employees to grow and develop their skills, and to better understand how their work fits into the overall organizational objectives.

Professional Development

Performance evaluations can identify areas where employees may need additional training or support, which can lead to opportunities for professional development and career advancement.

Fairness & Recognition

Evaluations can provide employees with recognition for their hard work and achievements, which can increase job satisfaction and motivation. They may also help to ensure that employees are evaluated fairly and consistently, which can promote a sense of fairness and equity within the organization.

360 Degree Survey

If you want to be a good leader, you have to be open to criticism. Without knowing your strong and weak sides it will be extremely difficult for you to develop and make your company achieve success.

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360 Degree Survey

If you want to be a good leader, you have to be open to criticism. Without knowing your strong and weak sides it will be extremely difficult for you to develop and make your company achieve success.

Use this template strzałka w prawo strzałka w prawo All templates strzałka w prawo strzałka w prawo

Evaluating Performance – Best Methods

Enough theory; time for practice. Here are proven performance evaluation methods to help your organization achieve these benefits. There are several tools to choose from, and different organizations may use different methods depending on their needs and goals.

360-Degree Feedback

Popular HR surveys involve collecting feedback from various sources, including supervisors, peers, subordinates, and sometimes even customers or clients. The idea is to get a more comprehensive picture of the employee’s performance and how others perceive them. 360-degree feedback can help identify strengths and weaknesses, set goals for improvement, and provide targeted coaching and training.

Critical Incident Method

To use the critical incident method for employee performance evaluation, you need to identify and document specific instances of the employee’s behavior that demonstrate outstanding or poor performance. Analyze the incidents, provide feedback, and develop an action plan for improvement. This approach provides more specific and objective feedback and can help identify areas for development.

Management by Objective (MBO)

This performance evaluation method involves setting specific, measurable goals for employees and a plan for achieving those goals. The goals are typically aligned with the organization’s overall goals, and progress is regularly reviewed and evaluated. MBO can ensure that employees work towards the same objectives and provide a clear framework for assessing performance.

Self-Evaluation

Another way to measure employee performance involves asking them to reflect on their productivity and provide feedback on their strengths, weaknesses, and areas for improvement. It can be a valuable tool for promoting self-awareness and accountability and helping employees take ownership of their development.

Performance Test

Last but not least, tests involve assessing an employee’s performance through specific tasks or simulations that measure their skills and abilities. Performance tests can help evaluate technical or job-specific skills and provide more objective data than subjective evaluations.

There are no golden rules in HR.

The best method for evaluating employee performance will depend on the organization’s goals and culture and the specific needs of individuals. Combining multiple ways, such as using 360-degree feedback along with MBO or self-evaluation, can provide a more well-rounded picture of employee performance and help identify areas for growth and development.

When providing negative feedback in employee evaluation, it’s crucial to do so constructively. This means offering specific examples and helpful suggestions for improvement. The purpose is to help employees identify key performance areas where they can grow and provide them with the necessary support and resources.

Performance Evaluation Examples

Giving feedback is a critical element of evaluating an employee’s productivity. An efficient manager with the right words can motivate a subordinate to do a good job and affect the team’s morale, regardless of whether he has good or bad news to convey.

Here are examples of constructive feedback that superiors can give, e.g., by completing a 360-degree survey questionnaire regarding their employees.

Positive Feedback Examples:

Individual performance

John is a consistent performer who has consistently met or exceeded his goals and targets. His ability to take ownership of his work and follow through on his commitments is exceptional. He has a strong work ethic, and his attention to detail and quality of work is impressive. John is a valuable asset to our team, and I have no doubt that he will continue to succeed in his role.

Managing Skills

Mary has shown excellent leadership skills in managing her team, which has resulted in outstanding results. She has a natural ability to inspire and motivate her team, and her communication skills are exceptional. Mary is a strategic thinker who is able to identify and implement solutions to complex problems. She is an excellent role model for others in the organization and a valuable member of our team.

Employee’s Strengths

Tom is a dependable team player who consistently goes above and beyond in his role. He is always willing to lend a helping hand to his colleagues and is known for his positive attitude and willingness to take on new challenges. Tom has a strong work ethic, and his dedication to his work is impressive. He is an asset to our team, and I have no doubt that he will continue to make valuable contributions to the organization.

Problem Solving

Sarah has demonstrated an exceptional ability to solve complex problems and come up with innovative solutions. She has a keen eye for detail and is able to identify areas for improvement. Sarah is an excellent communicator, and her ability to articulate ideas and solutions is impressive. She is an asset to our team, and I am confident that she will continue to excel in her role.

Team Player

David is a committed team member who consistently produces high-quality work. He has a strong attention to detail and is able to deliver on his commitments. David is known for his positive attitude and willingness to help others. He is a valuable member of our team, and I am confident that he will continue to make valuable contributions to the organization.

Self Evaluation Template

Self-evaluation is an essential part of the overall employee evaluation. Use ready Self Evaluation Form – collect, view, and filter feedback in one place and create automatic reports for HR.

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Self Evaluation Template

Self-evaluation is an essential part of the overall employee evaluation. Use ready Self Evaluation Form – collect, view, and filter feedback in one place and create automatic reports for HR.

Use this template strzałka w prawo strzałka w prawo All templates strzałka w prawo strzałka w prawo

Negative Feedback Examples:

Poor Performance Metrics

Jane’s work has been inconsistent, and there have been occasions when she has failed to meet her deadlines. She needs to work on improving her time management skills and prioritizing her workload. In addition, her communication with colleagues and clients could be better, and she needs to be more proactive in keeping others informed of her progress.

Time Management

Michael has a tendency to take on too much work and can become overwhelmed, which has led to errors and delays. He needs to improve his time management skills and learn to delegate tasks more effectively. In addition, Michael needs to work on his communication skills, particularly in terms of keeping others informed of his progress and any issues he encounters.

Seek Employee Feedback

Lisa has a tendency to shy away from new challenges and prefers to stick to tasks she is familiar with. She needs to work on stepping out of her comfort zone and taking on new challenges to develop her skills and expertise. In addition, Lisa could benefit from improving her communication skills, particularly in terms of asking for help when she needs it.

Employee’s Personality

Alex has exceptional technical skills and knowledge, but he can sometimes come across as condescending or dismissive when dealing with colleagues who do not have the same level of expertise. He needs to work on his communication and interpersonal skills to ensure he is building positive relationships with his team members. Alex should also work on his ability to explain technical concepts to non-technical team members in a way they can understand.

Customer Complaints

As our key customers highlight, Rachel has a tendency to procrastinate, which has resulted in missed deadlines and delays. She needs to work on improving her time management skills and prioritizing her workload. Rachel could also benefit from seeking feedback from her colleagues to identify areas where she can improve and actively work on developing those skills.

Tip: Pay Attention to What and How You Communicate

When providing negative feedback in employee evaluation, it’s crucial to do so constructively. This means offering specific examples and helpful suggestions for improvement. The purpose is to help employees identify key performance areas where they can grow and provide them with the necessary support and resources.

Performance Evaluation Survey Template

Instead of a traditional summary, we have prepared several ready-to-use performance review templates for you. We hope that they will serve you as an inspiration and will contribute to the introduction of constant monitoring of employee satisfaction and productivity in your organizations.

Employee SelfEvaluation Survey Template

360-Degree Feedback Template

Evaluation Survey Form Template (for HR)

Training Evaluation Survey Template

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Dariusz Jaroń
Content marketing specialist and author of non-fiction books with many years of experience in B2B writing, journalism, and translations. Beginner marathon runner and intermediate mountain hiker. When he isn't writing or jogging, he's probably trying to learn Italian.