Keeping your employees on track and motivated should be one of the top goals of your HR department. Part of this process should include regular appraisals so employees know whether they are reaching or exceeding goals and where there is room for improvement. Giving consistent and accurate appraisals is important. Your HR team should have a performance appraisal method in place that fits the job as well as the management style of your company as a whole. If you’re looking for a new way to evaluate your employees, consider these five methods.
Performance Appraisal Method Options
The right appraisal method should involve a good balance. It should include effective employee performance tracking, objective critique, and clear ways of moving forward. Here are five popular methods and why they may be good choices for your business.
Appraisal Based on Production
A performance appraisal method based on production is often a popular choice for those in results-based positions. For example, if you have a manufacturing business, you could track based on the units that workers made. You can track a worker’s results over a certain amount of time and compare that against company averages. You could also compare it against goals that have been set for each employee or department at the beginning of the appraisal phase.
This can also be a good method to appraise salespeople who have targeted sales goals. This may be a tough method to use for those whose jobs don’t ‘go by numbers.’ It also does not allow for other factors that go into job performance, such as attitude, effort, and customer service.
Appraisal by Essay
Appraisal by essay is a more subjective manner of evaluation than that based on production. Instead of simply measuring numbers, it offers a written critique from managers or HR. This could be an effective method for those in managerial or customer service positions that are not subject to set goals based on numbers.
Those writing the essays can mention both positive and negative feedback and set out a plan for improvement. Essays are subject to bias, however, and are often best paired with another method. This type of appraisal often works well with the appraisals based on production. One method can focus solely on numbers, while the essay portion can focus on other areas.
Appraisal Based on Objectives
Having your HR team and employees work together to agree on mutual objectives to meet is often a good choice for companies. They can agree on objectives before the assessment period starts. With a good employee records retention system, the HR department can easily look back at what they agreed on and go over the results at the time of appraisal. Objectives can be based on goals and numbers, or on more abstract details such as customer satisfaction.
The important thing is to come up with objectives that relate to their jobs and that are easy to track. Objectives will often be different depending on the employee’s role within the company. It’s usually best to set consistent objectives for those in similar roles.
Appraisal with Graphics or Mixed Scales
Having appraisals based on graphics or mixed scales allow for consistent appraisals of all employees. They are popular among larger companies that might not have the HR manpower to do intense critiques of each team member. Rating employees on scales, usually from 1 to 5, is a quick and easy way to perform appraisals.
Many companies use a variety of scales for different job duties. This can track a wide range of duties. However, they can often lack the feedback necessary for employees to improve. If you consider this method, you may want to include more in-depth reviews at least once a year.
Appraisal Involving Outside Feedback
Appraisals can easily be biased depending on the person conducting the review. For this reason, many companies choose to perform appraisals involving outside feedback. These can include feedback from co-workers and other managers. It can also include customers to develop a big picture assessment of each employee. Though these are often more time consuming, they can be very valuable. If you have a large company, you might consider this type of appraisal for your managers or leadership team.
The best way to ensure accurate and effective appraisals is to utilize employee HR software that allows for easy records retention and retrieval. No matter what method you choose, you need to have accessible records.
These records include job performance, prior evaluations, and any areas of concern for each employee on your team. This allows for consistent appraisals that are based on both past and present job performance. They also help your HR team to store the new information and refer to it as the next appraisal date approaches. Regular appraisals help keep your employees on track. With an efficient and effective method, you can provide a clear plan for each employee moving forward.