Exotech | Apart from the quality of products and services, improving employee work is also an important thing that must be considered. Companies must at least conduct performance reviews to maintain and increase employee productivity. By evaluating employee performance, companies can see what needs to be improved, improved and appreciated.
Indirectly, this evaluation will have an impact on increasing work interest and productivity, which ultimately will also have a positive impact on business development. After all, employees are one of the spearheads of success and therefore there must be a set of standards that regulate their performance.
What is Employee Performance Appraisal
Performance evaluation or employee performance appraisal can be interpreted as a systematic assessment process carried out by the company on the quality of its employees' performance. As stated by Leon C. Menggison, performance evaluation or "performance appraisal is a process used by leaders to determine whether an employee is carrying out his work in accordance with his duties and responsibilities".
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The ways to measure employee performance that you will find will vary greatly, depending on the field and industry type of business. However, generally, this evaluation is carried out by management or authorized employees who are hierarchically their direct superiors. Or, it can also be carried out by another party who has previously been appointed to provide an objective assessment, this could be a colleague or a review from a customer.
The results of this assessment will later be reviewed by management, and then used as a basis for further policy making, such as salary increases for employees who have good performance or warnings and training for employees whose performance needs to be improved.
The goal is Performance Appraisal
What is clear is that with this evaluation, it is hoped that the company can improve and improve the quality of its employees' performance. Companies can take further steps in the form of promotions, giving rewards, choosing job training, or even terminating contracts for employees whose performance results are not satisfactory.
For more details, the following are the objectives of employee performance evaluation:
- Make records of employee work results, so you can find out performance progress. The hope is that employees can be motivated to work better or at least the same as their previous performance or achievements.
- Reformulate future targets and performance standards. With goals, employees can be motivated to achieve according to their potential.
- Foster mutual understanding between employees regarding performance standards or requirements according to their respective positions.
- Provide opportunities and opportunities for employees to convey wishes or aspirations related to the work they currently hold.
- The evaluation results can be used as a reference for re-examining employee capability development implementation plans. Because it could be that employee development training plans need to be changed according to the latest needs and conditions.
What are the Benefits of Performance Evaluation
You could say, performance evaluation is feedback from the company regarding the performance of its employees. Generally, companies will make it the basis for providing appropriate compensation or appreciation for good quality workers. On the other hand, from the results of this assessment, employees can also assess themselves and take corrective action with the aim of increasing productivity and quality of performance.
The cause of poor performance can also be immediately identified, so that further steps can be taken in the form of a more effective training program. So, basically, this evaluation is closely related to the human resource management function, to see strengths and weaknesses accurately. More specifically, here are the benefits of implementing performance evaluation, both for companies and employees.
1. Benefits for Employees
- Employees can find out their strengths and weaknesses, so they can improve their performance and be motivated for self-development & improvement.
- Creating good and open communication relationships between employees and superiors.
- Employees will be helped to see more clearly the details and standards of the work they carry out.
- Creation of space to discuss work problems, including ways to overcome problems.
2. Benefits for the Company
- Can determine the right position for employees. The evaluation results will help management to place employees according to their abilities and expertise. This is important to increase productivity.
- Building communication and mutual trust with each other. In the evaluation process, the company will listen to employees' complaints, needs and aspirations regarding their work.
- There is certainty in updating the salary structure, compensation and bonuses. Structured performance evaluation will make it easier for companies to organize and avoid over budgeting in terms of providing compensation.
- Become evidence to protect the company legally. If, for example, a company is forced to expel or lay off employees, the results of this assessment can be used as evidence as well as supporting documents.
- Creating a work culture that is positive, open and full of a sense of togetherness.
- Creating competent quality human resources, by continuing to provide appropriate means of self-development for employees.
How to Effectively Conduct Performance Evaluations
Before carrying out an evaluation, the company must of course set performance standards and implementation timescales. This must be explained in detail so that employees can better understand and organize how it works. As for effective ways to evaluate, you can use the following techniques:
1. Self-Assessment
In order to build a transparent work system, there is nothing wrong if you give employees the opportunity to assess or review their performance so far. You can use structured questions or formal procedures such as 16 Personalities and DISC Personality, to get objective and accurate results. In this way, employees can introspect themselves and become more aware of their strengths and weaknesses.
2. Managerial Review
Within the scope of company management, those who have the right to evaluate employees are HRD, managers, or the workers' direct superiors. These parties are considered capable of providing reviews regarding employee performance, whether related to duties and responsibilities, work time, or personal attitude.
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For the sake of an objective and rational assessment, this assessment must of course be supported by data, such as attendance, KPI data, and others. Later, the results of the evaluation will be discussed in a meeting held by the company's internal management team, and then follow-up steps will be formulated.
3. Reviews from fellow colleagues
Evaluation from colleagues is also important. Ask fellow employees in the same division regarding their personal performance and attitude. Can person A work well in a team, what is his initiative and contribution like, as well as his daily attitude.
4. Reviews from Customers
For employees whose portion of work often comes into contact with customers, there's nothing wrong if you also ask for a review or assessment from them. However, whether a customer is satisfied or not with a company will be largely determined by how good the service is provided. Therefore, companies also need to conduct customer satisfaction surveys regarding service quality.
This survey can be done online by sharing the digital survey link on social media accounts or the company website. Or, offline by distributing survey sheets directly. If the company operates in the service sector, you can also see directly what employee interaction and communication is like in serving customers.
When Should You Do a Performance Appraisal
Even though the intentions are good, you have to pay attention when you carry out performance evaluations. If it is done too often, employee work can be hampered due to the large amount of input received. If it is too rare, employee development will be the victim.
The following are several recommendations for the right time to evaluate employee performance.
1. Annual
Annual evaluation is a form of evaluation that is quite often encountered. Because it has a year-long period, this form of performance evaluation can be quite effective in providing more comprehensive input. This time period will also be ideal if a company has a large number of employees and is having difficulty providing consistent input.
2. Once every two years
Biennial evaluations are generally carried out at the beginning of the year and in the middle of the year. With this system, companies can ensure that their employees can develop better towards the end of the year which is generally an important moment.
Apart from that, employees also get benefits through this system. Evaluations held in the middle of the year can be a time when employees who have performed well receive a decent amount of compensation.
3. Quarter
As the name suggests, quarterly evaluations are evaluations that are held 4 times a year. This evaluation system is ideal for start-up companies which generally have work patterns and make rapid changes. Those are the important things related to employee performance evaluation that you need to know.
There is no need to hesitate to do this, because this will have a positive impact on the company's success. Then, to improve employees' abilities and expertise, there is nothing wrong if the company accommodates online courses for them, both in the fields of business and management to engineering. Companies can choose online learning portals.