Performance evaluations are one of the most important strategies to improve workforce productivity and employee morale. I’ve personally witnessed the impact a great evaluation process can have on underperforming teams to help them become high performers.
The key is that this isn’t solely about measuring productivity. It’s about assessing each person’s strengths, weaknesses, and how they can better align their personal goals with company goals.
Performance Evaluation Methods
Human performance assessment has been addressed through various methods throughout my career working in different industries, and I’ve seen the impact of these methods firsthand.
The most common method is the traditional performance review, where managers meet with employees annually or semiannually to discuss accomplishments, goals, and opportunities for improvement. Performance reviews provide a structured approach to feedback, though they feel a bit outdated.
360-degree feedback collects feedback from multiple people. Typically, it includes managers, peers, subordinates, and sometimes clients. 360-degree feedback provides a comprehensive view of an employee’s performance from different angles.
Key Performance Indicators (KPIs) measure specific, quantifiable objectives, as they’re data-driven and objective.
Behavior observation scales ask managers to rate the frequency or quality of specific job-related behaviors. This makes it more objective and provides concrete examples.
Self-assessments enable employees to evaluate their own performance, promoting self-awareness and revealing insights the manager may not notice.
Peer evaluations ask coworkers who work alongside the employee daily to provide feedback. This can unlock insights around teamwork and collaborative strengths.
Each method has its own strengths and drawbacks. The most accurate and actionable data often comes from using multiple methods. The trick is to select the best combination of methods that match your organization’s culture and goals.
You can also use Lean Innovation principles to simplify the evaluation process so you don’t use more complexity than necessary to gather data.
Setting Objectives for Human Performance Evaluation
Establishing clear goals is key to a successful performance evaluation. I have walked many organizations through this process, and I’ve seen the impact on employee engagement and productivity.
The SMART goals framework is helpful because goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. Clarity is important because both the manager and employee should know exactly what is expected.
When employees align their individual goals with an organization’s goals, they feel a sense of purpose. They know how their specific contribution impacts the organization’s success. This alignment increases an employee’s motivation and ability to focus.
Inviting employees to participate in the goal-setting process increases their commitment and buy-in. Additionally, employees often understand their roles better than a manager and can often identify potential roadblocks.
It’s important to set clear performance standards for employees. These standards should be communicated well in advance and should be as objective as possible. This ensures a fair evaluation.
Make adjustments. Check-ins shouldn’t be a one-time event to set goals at the beginning of the year. Goals should be checked on regularly as work demands will inevitably change throughout the year. I encourage managers to schedule quick weekly or bi-weekly check-ins with employees. This way, you can give feedback or adjust goals as necessary in a timely manner.
Goals should push employees outside of their comfort zone without feeling impossible. Finding the right balance is key, as challenging goals are motivating while impossible goals are discouraging.
Measuring Outcomes in Human Performance Evaluation
Accurately measuring outcomes is essential to fair and effective performance evaluation. Through my experience, I’ve found that a combination of these different types of data provides the most accurate picture of performance.
Quantitative metrics are any numbers. This can be sales data, productivity numbers, or customer satisfaction scores. Qualitative metrics are anything that is less tangible, like great teamwork, creativity, or leadership potential. You’ll need both to accurately evaluate performance.
There are a variety of ways to collect performance data. It might be through a survey, direct observation of a team member, or through automated tracking systems.
Technology has significantly impacted performance tracking. There are now software solutions that can track real-time performance data. This allows more frequent and accurate performance evaluations.
Balancing short-term and long-term performance metrics is key. Short-term performance metrics show immediate results from employees, and long-term performance metrics show sustained performance as an employee grows within the company.
There are several common biases in performance measurement. Recency bias, for example, only looking at an employee’s most recent performance. Or favoritism, which is only evaluating an employee well because you like them. Managers need to be aware of these biases in measuring employee performance and put processes in place to help mitigate them.
The ultimate goal is to build a comprehensive, unbiased, and fair performance measurement process. This process should accurately capture how much an employee is working, while also aligning with organizational goals.
Providing Constructive Feedback
Effective feedback is the key to performance improvement, and I’ve personally witnessed the impact of feedback on individual and team performance across various industries.
Feedback should be specific, actionable, and balanced. Focus on actual behaviors and outcomes you observed rather than general personality traits. Support your feedback with specific examples.
Timing and frequency matter. Immediate feedback following a specific incident is often the most impactful. Regular, ongoing feedback prevents any surprises during formal evaluations.
Promote an open and honest dialogue when giving feedback. Ask employees to share their perspective, and then really listen. Often, the employee’s point of view uncovers deeper issues or misalignments.
Use the “sandwich” approach sparingly. Give positive feedback, areas to improve, and then positive feedback again. However, don’t dilute serious feedback by surrounding it with praise.
Keep a record of feedback discussions. This documentation shows progress and ensures consistency in future feedback talks. It also helps you see patterns over time.
Always remember that feedback should aim to help employees improve, not just to criticize. Craft your feedback in a way that inspires the employee to take action and improve.
Challenges in Human Performance Evaluation
Human performance evaluation is difficult, and I’ve grappled with many of these challenges related to evaluating human performance in various organizational contexts throughout my career.
Bias is an evaluator’s constant battle. People suffer from recency bias, focusing on what someone has done lately rather than overall performance, and from the halo effect, where a person’s positive overall performance influences perception of unrelated individual traits. Training and establishing evaluation processes helps alleviate these biases.
Evaluations are inherently subjective. Two different evaluators may have different opinions about the same performance. Using clear criteria and multiple evaluators helps mitigate this subjectivity.
Ensuring consistency across different evaluators is paramount to maintaining fairness. Doing a regular calibration session where they show their evaluations helps maintain standards.
Doing performance evaluations across a global organization with different cultures introduces a new complexity. A certain performance may be great in one culture and bad in another. Developing evaluation criteria that works across different cultures is difficult.
Telling someone their performance isn’t cutting it requires a sensitive approach. Avoid making it a personal attack and focus on specific behavior. This will help you provide the person with resources they need to improve.
These challenges will never go away. Continuous training, open feedback, and a willingness to change your evaluation process will ensure you overcome them.
Pre-employment Screening and Performance
Pre-employment screening is an excellent predictor of future job performance, and I’ve seen this evidenced across different industries in my career.
The advantages of pre-employment screening are:
- Fewer hiring errors
- Better job fit
- Higher productivity
- Lower turnover
- Safer work environment
There are various types of pre-employment assessments, such as:
- Cognitive ability tests to measure problem-solving skills
- Personality tests to evaluate cultural fit
- Skills assessments to validate job-specific skills
Legal considerations are critical when using pre-employment testing. The key is to ensure testing is relevant to the job and is administered uniformly to all candidates. You should also avoid any discriminatory testing practices and protect candidate privacy.
How to make the most of pre-employment assessments: Align test results to performance expectations. It’s also important to use data from a pre-employment assessment to set realistic performance benchmarks and tailor onboarding.
The 2003 Littleton study pegged the ROI of pre-employment testing at $18 saved for every $1 spent. This is a strong signal of the economic value pre-employment testing can deliver.
Other research shows pre-employment testing reduces work-related musculoskeletal disorders and lost workdays as well as decreases employee turnover, all of which are safety and stability benefits.
Using Evaluation Results for Employee Development
Using performance review data to create development plans is a key strategy. I’ve used this strategy to transform both individual careers and organizational performance.
Building individual development plans based on review data is effective. Those plans should include how employees can play more to their strengths and mitigate blind spots.
Identifying opportunities to train and upskill employees is a key strategy. To get here, start by identifying skill gaps in performance review data.
Career pathing from review data will help you retain your best employees. If you’re not doing this already, simply show employees career frameworks and ladders.
Build mentoring and coaching programs from the review data. Then ensure employees who are strong in certain areas are teaching their peers.
Rewarding performance data with compensation will reinforce the outcomes you want. However, I recommend only relying on compensation as a reward 50% of the time and a non-financial incentive the other 50%.
Don’t forget development is never finished. Therefore, conduct regular check-ins and keep tweaking the development plans as needed as the business evolves.
Performance evaluation is an essential tool for any organization. I’ve personally witnessed how effective processes can drive improvement and engagement. All of the methods – traditional reviews, 360 feedback, KPIs, peer review – provide valuable insights. Setting SMART objectives ensures individual goals ladder up to company goals. Measuring results requires a mix of qualitative and quantitative metrics while avoiding potential biases.
Feedback should be constructive. The timing, specificity, and creating a feedback loop ensures a culture of constant improvement. Biases and cultural differences are harder to overcome Challenges. To overcome biases, encourage employees to seek feedback and use peer evaluations to benchmark results instead of seniority.
The Littleton study in 2003 found that pre-employment screenings offer an ROI of $18 saved for every $1 spent on screenings. Investing time to interpret the data and develop a plan can also have a big impact. By identifying areas of improvement, you can create training specifically to address areas for each employee and ultimately foster a more high-performing team ready to solve any problem.
