Top 7 Elements of An Ideal Employee Performance Appraisal

Employee Performance Appraisal

Employee Performance Appraisal reviews and evaluation are vital for every employee and his organization. Technology is changing at a rapid pace and there is an increasing need for every organization on improving the competitiveness of their product and services. As employees are the biggest assets of any organization, an efficient and competitive human capital management is needed to overcome competition in every niche.

So why does the traditional annual Employee Performance Appraisal review continue to fail as a tool for measuring employee skills?

There is no doubt that a weak Employee Performance Appraisal will dampen the company sales and brand value in the long run. And for sure the need to overcome Employee Performance Appraisal challenges for startups and growing companies is becoming complex and problematic in order to sustain growth. Teams finishing off this task with a mere performance review template will no longer be able to address this problem. So it’s essential for every growing company to redefine the Employee Performance Appraisal process! Let’s quickly get into the essential elements or components of an ideal Employee Performance Appraisal process.

Defined Goals and Objectives

An effective Employee Performance Appraisal system has to have clearly defined goals in place to achieve task or company objectives. The goals need to be specific, clearly defined, measured and rated by points. This can be achieved through various input parameters formulated by the supervisors or managers, enabling the employees to improve in their job performance and to achieve their defined goals thereby contributing to the overall growth of the organization.

Employee Performance Appraisal as a Continuous Process

Companies that strive and thrive for competitiveness and innovation, place appraisal system as an integral and continuous process for every project and stream in order to have productive employees. Most companies have Employee Performance Appraisal at the end of the year and in many instances, they miss crucial elements related to performance and productivity.

360 Degree Feedback

Measured and accurate feedback and reviews are important aspects of a good employee appraisal process. Employees love to have feedback not only from their immediate managers on the task assigned but also for their teamwork contributions, accomplishing multiple tasks/ projects handled by different departments. This would give a complete picture of employee contribution, so a 360-degree feedback would be the solution. Every employee should get accurate performance feedback about every aspect of task and work contribution from their supervisors, teammates, subordinates etc.

Task-Based Evaluation

Real-time Employee Performance Appraisal assessment should be in place right from task creation to completion, self-assessment of a task, immediate supervisor and manager assessment, cumulative tasks rating, point in time rating. Employees who disagree with a rating should be given an opportunity to challenge the rating and get an explanation, if required, of how the rating was derived which might be questionable to him.


Having self-evaluation as part of employee appraisal review and evaluation process enables employees to measure and gauge their individual performance of their tasks and projects accomplished, rendering significant achievements they get during any period of time, making them more accountable for their assigned tasks.

This self-appraisal should be the part of the overall performance evaluation that provides metrics to improve their job performance.

Performance-Based Compensation and Rewards

Every employee deserves the best compensation, rewards and recognition for their achievements. The compensation and rewards are substantiated with incentives, bonus, variable pay and an increase in salary, rewards for key accomplishments and other monetary benefits. Some of these are guaranteed ones and some are not which should be clearly communicated to all the employees by their top-level authorities.

Overall Assessment

An overall assessment of the Employee Performance Appraisal should be a rated one. It should imbibe self- appraisal evaluation, immediate supervisor or manager observations and critics, performance and progress on the goals, assessment of each task and job functions, personal behaviors and other key accomplishments.

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