5 Tips on Employee Performance Evaluation in 2020

The evaluation of employee performance is one of the key responsibilities of the HR department of an organisation. What's more, this one is an aspect that calls for a very systematic approach because unless the organisation manages to have a fair and effective process for employee performance assessment, it can negatively impact employee motivation levels and cause a drop in employee morale. Only when the organisation succeeds in recognising and rewarding the efforts put in by the employees, does it truly emerge successful.

However, with organisations today having hundreds of employees working on different projects, the responsibility of effectively monitoring the process of employee performance evaluation is more challenging than ever. The solution lies in an advanced employee performance assessment system like Digital HRMS that automates the entire process for maximized efficiency. The managers are entrusted with the responsibility of monitoring the performance of the employees based on multiple criteria and this process continues throughout the year. The annual performance evaluation is a cumulative result of the performance of the employees on various processes throughout the year.

Here are 5 key tips for enterprises today to work on making the employee performance evaluation process more effective. So, let's get started.

Tip 1: Understanding the purpose of performance reviews

So, the very first step is to understand why performance evaluations are so important, not just for the growth of the employee in the organisation but also for the organisation itself. The very purpose of performance evaluation is to make the employees discover ways in which they can improve their performance in order to contribute in a better way towards organisational goals.

Different organisations have different criteria for evaluation of performance and so it is important to understand which points to focus on. Focusing on the wrong parameters can bring out an entirely different picture that simply doesn't serve the purpose.

Tip 2: Performance reviews should be frequently planned

The tradition of the annual performance review is being questioned by experts today, who believe frequent feedback and evaluation works in the interest of the employee as well as organisation. It helps cultivate the culture of frequent feedback and allows the employee an opportunity to put in more efforts where required and improve their performance immediately. This is a positive approach as it allows for quick improvements.

Tip 3: Preparing for the evaluation

Now, this one is important because many reviewers think that monitoring the activity and performance of their team members throughout the year is enough to prepare an evaluation feedback report. However, this is often not enough, and it is recommended that reviewers prepare well by collecting data on employee performance in order to prepare an informed report. Also, it is important to be prepared for some questions from the employees regarding different aspects of the evaluation process.

Tip 4: Focusing on the future

The traditional annual performance evaluation was all about reflecting on the year that went by –achievements, missed targets, what went well and what could be done better. While analysing the past year's performance is what helps one learn from their mistakes, the evaluation meeting should also be about the future. This makes the employee feel more in control and gives them the confidence to go and make a difference. In other words, the focus should also be about the goals and targets set for the future.

Tip 5: Transparency is key

When it comes to performance evaluation, employees tend to get anxious about it. This can be avoided by inviting the employee in the preparation of the agenda for the evaluation process, so that they are aware of what is expected from them. The more they feel involved, the more likely it is that they will be motivated to give their best performance. Also, involving the employees ensures that there are no last-minute surprises and everyone is on the same page regarding the expectations from the evaluation itself.

So, that was about some of the key tips on employee evaluation management. Most employees associate the annual evaluation with anxiety and nervousness but implementing little changes in the approach can make a difference and turn it into a positive experience for the employees – something that they would look forward to.