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Performance Evaluation: Why Is It Important?

Have you ever felt as though you’ve been undervalued in a job role and don’t understand why? Many employees find themselves in this situation on a daily basis and it’s nothing to do with the fact they aren’t doing their job correctly. It’s usually down to the fact that the person leading the team doesn’t know how to give feedback and inform their team members on how to improve and drive for better results. If you feel that you fit into either one of these categories, then try not to worry, there’s plenty of time to learn and improve how you can get the most out of yourself and your team. 

What is Performance Evaluation? 

Firstly, we should look at what a performance evaluation looks to achieve and how it can be beneficial for the individual and the company. A performance evaluation is a review based on an individual during their assigned duties at the workplace and all-round job performance. This is usually carried out by either a manager, supervisor or team leader and can vary in length depending on your role. 

Why is Performance Evaluation Important? 

Without being able to communicate with employees on a one to one basis, there wouldn’t be a chance to develop their individual skills and next to no chance for the business to develop further. This is why Performance Evaluation is so important. If an employee knows and understands they are doing a good job by praise being given to them in a review, they can continue doing their job to the best of their ability.

If an employee is underachieving or appears to be struggling with the workload they have been given, then it’s best to try and understand why they are having problems. The problem might not lie with the individual themselves, but instead might be an issue with training, processes or even a problem at home.

If you feel that this is unachievable because of time commitments to other projects, the professionals from Zenefits believe that streamlining your business in some areas gives you more time to focus on more important things such as employee relationships. Doing this will also enable you to identify and address underlying problems that in turn will improve employee efficiency. 

Are There Different Types Of Performance Evaluation? 

You should consider the way in which you are going to review your employees as it could have an effect on how they perform in the future, so try and tailor each review to the individual, to get the best possible growth out of them.

  1. Top-down Review/ Leader Review – This approach puts the manager, supervisor, or team leader in charge which is hugely beneficial due to the working relationship between them. This often means the person in charge has a far greater knowledge of what the individual is like in the workplace and how they work, allowing them to assess them in a fair manner.
  2. Self-Assessment – This is exactly as it says it is, a self-assessment is where we look at our own performance and reflect on if there is anything we can do to improve. Usually divided into two stages, a questionnaire is filled out by the individual with questions about performance, followed by a meeting with a manager to discuss anything needed to move forward.
  3. Team Assessment – Whilst evaluating individual performances is vital to individual growth, it’s also important to evaluate how a team works together. When evaluating a team as a whole you can make adjustments to try and maximize the workflow and get the best results. This can improve employee relationships and communication.
  4. 360-Degree Rating – This is known as one of the most rounded forms of assessment because everyone that is involved in the employees’ workday is invited. This can range from managers, colleagues, and even customers. At the end of the process, all comments are considered and feedback is then generated to help improve the employee’s performance.
  5. Targets and Results – This is where an employee is measured against a list of targets or goals they are set. The object of this is to see if an employee is reaching the goals set by a company and if not, what they can do to help achieve this in the future. Things we can measure include sales targets, customer satisfaction, and customer retention.

With everything taken into consideration, a performance review is vital to your company and being able to move forward in a positive manner, reach goals, and drive the productivity of your workforce. Without communication, a business wouldn’t be able to complete even the simplest of tasks so make sure you’re talking to each and every one of your employee’s and if not, it’s not too late to start. 

 

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