Employee Performance Appraisal reviews and evaluation are vital for every employee and his organization. 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 review process continue to fail as a tool for measuring employee skills?
Annual employee performance review process tends to be biased and often miss crucial elements related to performance and productivity.
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 start-ups and growing or small business 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 us quickly get into the essential elements or components of performance appraisal process.
Defined Goals and Objectives
An effective Employee Performance Appraisal system must have clearly defined goals in place to achieve task or objectives (OKRs). 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.
Managers and employees are always in sync when goals are defined clearly.
Ideal performance management system should also consider the complexity of goal or task performed by the employee.
For more detail visit setting goals/objective/tasks
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
For more detail visit Continuous Feedback
Companies that strive and thrive for competitiveness and innovation, place appraisal system as an integral and continuous process in order to have productive employees.
Every organization has own rating scales or own appraisal methods to appraise or rate their own employees. So, employee performance management solution should provide configuration which would allow organizations to configure different KRA depending on job description.
Performance management application should also allow to imports tasks from JIRA, CRM etc.
For more detail visit Configurations
Real-time Employee assessment should be in place right from goal or 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 or goals accomplished, rendering significant achievements they get during any period of time, making them more accountable for their assigned tasks or goals.
This self appraisal should be the part of the overall performance evaluation that provides metrics to improve their job performance.
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. Including employee engagement process with rewards increase motivation and productivity.
For more detail visit Employee Engagement
Data driven insights related to employees can help HR department or Human resource manager to take proactive decisions.
Analytics helps Human resource department in figuring out how good or bad is the relationship between manager or employee.
Performance and Analytics driven reports also help in reducing attrition rate.
For more detail visit People Analytics
Performance improvement plan
Performance appraisal software should also include Performance improvement plan (PIP) for low performing employees.
PIP give low performers opportunity to improve for given time period.
For more detail visit Performance Improvement Plan
Employee Performance management application should contain setting of tasks/goals self evaluation, immediate supervisor or manager feedback, performance rating and progress on the goals, constructive feedback, people analytics, compensation management and reward and recognition.
Also, effective performance management solutions should be easily to configure and deploy.