What is Performance Assessment? A guide to clear all doubts!

 

 Companies use tools to quantify how each employee is performing and its impact on the business. Surely you've already heard about performance appraisal, haven't you?

 

She is responsible for measuring the employee's performance – people analytics – at the same time that it works as a feedback , so that they know where improvement is needed.

 

Every company needs to know how its employees are engaged. In addition, it must guarantee the commitment of its managers in contributing to the development of their subordinates.

 

After all, a true leader is one who, more than being a reference, stimulates the growth of your team. Read on and check out our complete guide to performance review!

 

After all, what is performance evaluation and what is its objective?

Performance appraisal is one of the oldest and most effective techniques for HR. With it, it is possible to identify if a professional produced as desired by the company or if their deliveries are below standard. Therefore, through this technique you can promote improvements.

 

It is essential when it comes to strategic people management and should be part of the routine of companies. Performance appraisal is generally carried out annually.

 

However, it is necessary to reinforce that this does not mean that the employee should not receive feedback along their journey. Quite the contrary: the manager is responsible for always dialoguing with his team and scheduling, at least, quarterly feedback with each team member.

 

In a clear way, performance evaluation seeks to identify the gap — or gap — between the results that a professional should deliver and the results that they are actually delivering. Thus, it is possible to make strategic decisions, such as training, promoting or firing someone.

 

The objective of every performance evaluation is to be able to identify positive and negative points within the business, better directing the investment of efforts by the company in creating a plan so that its goals are also achieved.

 

It is a way to promote the strategic management of people and generate more value to the organization's human capital. It is important that when structuring the assessment to be applied, performance metrics and indicators are always in focus.

 

This makes it clearer how to use and interpret the data obtained. Furthermore, it is essential that the established goals are very clear to the employee

.

 

In practice, what are the benefits of this assessment?

Small business

 

Even in large organizations, there are managers who do not know the correct way to carry out and direct this type of feedback. But what are the advantages of this type of assessment? Below, we list the main benefits!

 

Strategic planning

Strategic HR

 

It is easier to persuade company leaders to invest more in training, for example, if 60% of the company says they have difficulties operating the software than to argue that "many people are having difficulties using the programs".

 

In other words, to engage your managers, aiming at the development of the team and, consequently, high performance, it is necessary to be equipped with data that proves the need for improvement.

 

We can also highlight the greater impact that HR actions will have on the company, since the prioritization of actions will be based on the degree of severity indicated by the numbers obtained in the evaluation. It is also taking as a parameter the performance evaluation that it is possible to validate promotions and advancements in the employee's career.

 

Increased quality of work teams

The performance evaluation is able to collect specific data about the different members of a work team, which makes it possible to identify causes of lack of productivity and quality of the team. It is also an essential tool to measure how the leader is managed.

 

As an illustration, these causes could be communication difficulties between team members and the manager, gaps in soft/hard skills, decentralization of information, high volume of demands in short delivery periods, stress generated by high charges, etc.

 

direct each employee talent management

 

Improved company productivity

The increase in quality in teams results in greater productivity in delivering demands, as quality is a driving factor for productivity. Higher quality teams have employees who are individually well trained and well aligned with each other.

 

This makes it possible to deliver a good job, without wasting efforts caused by poor communication or a lack of understanding of what really needs to be done.

 

A company with quality teams can make different areas talk and organize themselves, reducing the overload and stress of some sectors, in addition to encouraging the exchange of knowledge, further improving the company's productivity as a whole.

 

Motivation of work teams

Receiving feedback is essential for the professional growth of workers. So, performance appraisal is a great way to tell them what specific points should be improved or maintained. It is a tool that, when used correctly, contributes to the area's engagement.

 

Plan for jobs and wages

 

What should be noted in this type of assessment?

As you can see, this assessment is really important for the company, helping to direct and develop its employees. However, what must be diagnosed in the performance evaluation of the leaders and led of an establishment? There are parameters that are common to every performance evaluation and others are specific, such as the area's goals.

 

To start with, it is important to assess what the employee has effectively delivered to the organization. This measurement can be done with the help of key performance indicators, targets, or with the observation of leaders themselves—techniques that will be discussed later.

 

However, one must go further. Measuring only quantitative results can offer a short-sighted view to the human resources professional. In fact, there are professionals who deliver results, but who do not embrace the company's values ​​and use undue trickery.

 

If only the numerical aspect is considered, this kind of attitude will be encouraged.

 

Therefore, it is also important to carry out a performance evaluation by competences. In this case, we seek to identify the skills of professionals and assess whether they match what is disseminated by the company.

 

Therefore, the focus is on the CHA, that is, on the Knowledge, Skills and Attitudes of each professional.

 

What are the key performance indicators?

Every company, regardless of its size, must have well-defined indicators, metrics and goals. In this way, it is possible to diagnose the results delivered by employees more quickly, safely and easily. This contributes to the development of strategies to enhance the performance of the team, as well as the business.

 

rh indicators

 

        level of customer satisfaction and loyalty;

        employee absenteeism rate;

        percentage of breakdowns in the company;

        average sales value per seller.

The goals must also be considered, whether or not they were achieved by the professionals. They act as an indicator of the future, aligning teams on what needs to be achieved.

 

However, it is important that they have five basic skills. Good goals must be: specific, measurable, achievable, relevant and with a well-defined time frame.