Employee performance appraisal plays an important role in developing or improving business success because this has a huge impact on the continuity of the company's operations. There are various methods for evaluating employee performance, for example individually or in teams based on internal and external aspects. If you're looking for the best way to assess employee performance, this article describes some of the methods that many companies already use.
Step
Method 1 of 4: Assessing the "360 Degree" Method
Step 1. Ask for feedback from subordinates
Make sure employees don't put their names on the feedback sheet so they can provide information as it is without worry. This method is useful in evaluating the performance of superiors as employees and leaders. To get honest feedback about your boss's performance, ask his or her subordinates the following questions:
- "Is your boss able to lead the team well?"
- "Provide information that shows that your boss has successfully improved his or her leadership style."
- "Provide data that proves that your boss has a good job performance".
Step 2. Ask employees to self-assess
One effective way to measure employee performance is to ask them to rate themselves. The employee in question knows his strengths and weaknesses better than anyone else. It is possible for employees to overestimate themselves. Therefore, this method must be supported by a performance evaluation system with a different approach. The following questions help employees assess their work performance.
- "Describe the best job performance you've ever had."
- "Describe the steps you have taken to support work time efficiency".
- "What do your co-workers (including superiors and subordinates) think about your work performance?"
Step 3. Gather feedback from coworkers of the employee you wish to assess
Feedback from co-workers of employees can be used to improve the performance of the company and the employees concerned because they understand the responsibilities and competencies required to occupy certain positions. Feedback from coworkers is very useful for employees who want to know their strengths and weaknesses.
- "When compared to other employees with the same position, determine the value for your colleagues according to their work performance".
- "Give advice so that he can improve work performance".
- "Provide information about the best work achievement he has ever shown".
Step 4. Ask the supervisor for an assessment
A person who occupies a superior position understands well the duties, responsibilities, and quality of work of employees who are subordinates as a basis for assessing the productivity of the work concerned. He is also the most competent in deciding the promotion or demotion of subordinates based on the quality and results of their work. Ask the following questions to get employee evaluation results from supervisors:
- "In your opinion, are employees performing satisfactorily?"
- "What's your suggestion to improve his work performance?"
- "Why is he eligible/not eligible for promotion?"
Step 5. Know the limitations of the "360 Degree" method
If using this method, the feedback obtained is very subjective and tends to be influenced by the relationship between the rater and the assessed one. Therefore, do not rely solely on this method when assessing employee performance.
Method 2 of 4: Conducting a Quantitative Assessment
Step 1. Use quantitative methods
Assessment of employee performance in the manner described above tends to be subjective. To make the assessment more objective, use certain criteria, such as productivity ratio, turnover rate, cost budget, and error ratio. Each department must have measurable criteria so that the results achieved can be compared with applicable standards, department/division targets, business trends, and work targets for each employee. Collect the data systematically and then determine whether or not the company's strategies and targets are the benchmarks for business success.
- For example, monitor the length of time a customer waits in line to purchase a product.
- Record the number of products produced or reports prepared by employees (which are assessed) in 1 hour.
- Make sure you explain the performance appraisal criteria and work targets to each employee before the evaluation period begins. Conduct training and socialization regarding the performance evaluation system to all employees.
Step 2. Compare the results achieved with the work plan and quantitative targets
Before the evaluation period begins, first determine the work plan and targets that must be achieved by each employee. Once the performance data has been collected, compare it to the quantitative targets to find out the achievement. If the target is not achieved, management needs to change or adjust the policy as a basis for setting new targets to improve the company's organization.
- For example, if customers queue for an average of 3 minutes to be served, try to reduce customer waiting times.
- One of the most challenging jobs is handling complaints in customer service. After recording the time span of telephone conversations over a certain period, management can make efficiencies to develop customer service procedures by identifying telephone conversations that have a longer time span.
- Increase targets using quantitative data in percentages. For example, during the last quarter, the company's net sales were $500,000. For the coming quarter, target a 1% increase in net sales.
Step 3. Use the results of the assessment to develop a work plan
Work progress must be measured regularly and followed up, especially when the company's performance is not good. Periodic work performance assessments are needed to ensure progress. In addition, the results of the assessment can be used to determine the effectiveness of the plans that have been prepared.
- Conduct training programs for underperforming employees.
- If the results of the assessment show that the employee is not making progress, change his work plan or target.
Method 3 of 4: Ensuring Quality of Work is Achieved
Step 1. Conduct an evaluation to assess the quality of the employee's work
The results of the work performance assessment reflect the performance of each employee from all aspects starting from work ethics to individual achievements. This assessment method can be used to evaluate the annual work performance of each employee as a whole. After undergoing evaluation, employees will receive feedback to improve the quality of work and receive appreciation for their work performance.
- How many units were produced or sold by the employee (as assessed)?
- How good is the quality of the work?
- How much work time does he use to produce products or make sales transactions?
Step 2. Perform a comprehensive assessment
A comprehensive evaluation is useful in providing alternative solutions, especially for companies that are experiencing problems. However, problems usually occur due to inefficiency of work processes, inadequate training, or poor business management. Therefore, management needs to review procedures thoroughly by gathering input from various parties, making decisions, taking actions, and making policies to address complex or complicated problems.
Hire professional consultants as a neutral party to objectively assess the company's daily activities and employee performance
Step 3. Perform random checks to control the quality of work
This method has a positive impact because employees are aware of the checking, but do not know the schedule. Thus, employees who are lazy or whose performance is not good will be exposed. Implement the following steps to keep employees motivated.
- Carry out surprise inspections to check product quality.
- Evaluate random telephone conversations.
- Check the company's operating records from time to time.
Step 4. Gather feedback from customers
Customer satisfaction must be the main mission of the company and can be used as one of the criteria when assessing employee performance. Ask customers whether they are satisfied with your company's products or services. Asking for feedback on the company's performance from external parties is a surefire way to collect evaluation materials to evaluate the company's performance objectively.
- Be wary of very disheartening feedback from customers. Several industries and companies, especially the motor vehicle business, often receive very negative comments from customers.
- When requesting feedback, standardize using a tool or form with a specific format so that all information can be used as best as possible.
- In general, customer feedback is subjective and mostly reveals a bad experience. Evaluate customer service performance using objective assessment criteria, such as duration of problem solving, solutions provided, and number of products returned by customers.
Method 4 of 4: Improving Time Management
Step 1. Calculate the time span for completing a particular task
One way to measure the effectiveness of time management is to calculate the time span for each employee's task completion. Make sure you use data that is accessed through the system, such as a attendance card or a computer program. In order to obtain accurate evaluation results, manual data collection, for example by entering data into tables, is unreliable and inefficient.
- There are several software that function to monitor the activity of computer users. That way, you can evaluate employees whose work performance is not reaching the target to find out why.
- Pay special attention to employees whose work results are far below the average so that they are able to achieve the work targets that have been determined.
Step 2. Give feedback, but not too often
Feedback is very beneficial for employees, but daily supervision to improve morale is a double-edged sword. Instead of using this method as a means for management to monitor employee performance and responsibilities, we recommend that you conduct weekly or monthly evaluations. In addition, increase employee motivation by providing bonuses and keeping each employee's values confidential, instead of humiliating him or her.
Step 3. Make sure the work ethic is applied properly
One method of assessing work performance is to examine records of violations of company regulations. For that, do the following steps:
- Check the data for late arrival to work. Employees who often come late to the office reduce the work time that is their responsibility. This also has a bad impact on co-workers because it makes the work atmosphere unpleasant.
- Pay attention to the neatness of the employees' clothes. Dressed casually while in the office can reflect the same conditions at work.
- Explain the rules for using office inventory. Make sure each employee understands the rules for using office inventory, such as cars, telephones, or computers. Employees who abuse office inventory do not use work time wisely.
