How employee evaluation can enhance the growth and performance of an organization

Employee evaluation is a crucial tool for effective communication between organizations and employees that impacts the organization’s bottom line. Though it has been used for years, it is now fast evolving thanks to the latest technologies and focus on employee experience. 

Every business has its way of doing these assessments. However, most organizations evaluate their employees multiple times yearly and aim to build an employee-centric, future-ready workplace that will attract and retain top talent. 

Read this article to learn about the different types of employee evaluation methods and the best practices for the process.

What is employee evaluation?

Employee evaluation refers to assessing employees regularly to understand their performance at work. It can be done in various ways and at different intervals depending on the purpose of the evaluation and the desired outcome. These evaluations were conducted yearly earlier, known as annual appraisals or performance reviews. 

But now, the whole process has become much less formal. Employers aiming to build a people-centric workplace care about their employees and their mental health too.

92% of employees want feedback more than once a year, and 77% of  HR managers felt that yearly performance reviews did not accurately represent the employee’s work. 

Organizations realize the necessity of starting a two-way dialogue between employees and managers. This helps employees understand the value they provide to the company, keeps them more engaged, and increases productivity.

Another study reveals managers spend 210 hours a year on performance management, and employees spend 40 hours a year. 

It can be challenging for HR managers to connect with all employees and keep the conversation going. But, inFeedo’s Amber is a chatbot that inspires honest conversations that help capture the employee sentiment.

Amber’s predictive analytics and conversational nature help HR managers gauge employee experience consistently and measure them to take actionable steps.

Types of Employee Evaluation methods

1. Performance-based evaluations: They help assess the employee's overall performance by focusing on their goal-accomplishments and productivity. They help set performance expectations, provide positive employee feedback, and determine top performers.

2. Behavior-based evaluations: This evaluation method assesses the employee’s communication, problem-solving, teamwork, and other behaviors. Evaluating these behaviors can improve interpersonal skills and cultivate a thriving work culture.

3. Objective-based evaluations: An employee’s performance is compared with pre-determined and measurable goals and objectives in this kind of evaluation. It helps form data-driven evaluations and also aligns organizational objectives with individual plans.

4. Competency-based evaluations: These assessments evaluate employees based on specific requirements for their roles, for instance, technical skills, leadership abilities, and adaptability. They help identify skill gaps, provide relevant training, and ensure the employee is competent for the job profile.

Each employee evaluation method offers unique results, catering to various aspects of an employee's growth. Combining these methods can result in a comprehensive employee assessment process that helps in continuous improvement and overall organizational development.

 Employee evaluation best practices

1.Set clear performance expectations

Establish SMART goals-

• Specific: Define the goals clearly and precisely. For instance, instead of "Increase sales," say, "Increase sales revenue by 5% by the end of the first quarter."
  
  
• Measurable: Ensuring the objectives can be quantified helps track progress. Take, or example, "Decrease customer complaints by 10% within three months."
  
  
• Achievable: Setting practical and attainable goals that don’t burn out employees. Such as "Achieve 75% customer satisfaction by the end of this year."
  
  
• Relevant: Aligning employees’ goals with their job profile and the organization's overall objectives. "Complete a course in communication to improve interpersonal skills and collaborate better with the team."
  
  
• Time-bound: Designate a  timeframe for completing goals. For example, "Launch a new email campaign by the end of this month."

2. Ensure regular and ongoing feedback

• Offer regular feedback to focus on employee strengths and address improvement areas.
• A feedback sandwich should be the approach where you begin with positive feedback, then move on to what needs to be improved and end it with encouraging words.
• Regular feedback to track progress and offer support where needed.

3. Measure objective performance 

• Determine each role's Key Performance Indicators (KPIs), such as sales targets, customer satisfaction scores, or project completion rates.
• Make employee evaluation data-driven by providing the numbers that show their progress.

4.Encourage employee self-Assessment and involvement

• Encourage employees to self-assess their performance, specific challenges, and areas that need help.
• Provide self-assessment forms with open-ended questions to gather valuable employee insights about their performance.

5. Evaluate performance and train on communication skills

• Evaluate written and verbal communication skills to gauge clarity, listening skills, and compelling messaging.
• Arrange training or workshops on public speaking, resolving conflicts, etc., to instill better communication skills.

6. Implement multi-rater evaluation (360-degree feedback)

• Collect feedback from peers, subordinates, and supervisors to understand the various aspects of an employee and provide unbiased, comprehensive feedback.
• Maintain anonymity and confidentiality in the employee evaluation to ensure openness and honesty.
• Provide training to evaluators on giving constructive criticism without disrespect.

These best practices in employee evaluations can improve employee engagement, performance, and growth. Regularly updating the evaluation process based on feedback and evolving industry needs is essential for the best results.

Employee Evaluation Examples

Open and honest feedback between employees and organizations can help create a safe, secure, positive work environment. It improves the relationship between managers and their subordinates and increases job satisfaction and employee retention. Here are some constructive employee evaluation examples.

• You manage your time well, and you are always on time.
• Your ability to listen with an open mind and discuss everything with your team is highly appreciated.
• Your problem-solving skills helped the company achieve great heights.
• You must delegate more tasks to increase productivity and allow others to prove their competence.
• You have shown eagerness to grow in your position, and you need to consider training and courses to improve your skills and expertise.

Empower your HR team with AI and machine learning.

The latest tools and technologies can help immensely with employee evaluations.

Amber’s Tenure model and science-powered EX framework have helped over 250 companies. It enhances the employee experience and helps take corrective measures in real time. MediaCom, for instance, faced a challenge in reducing the turnover rate in the APAC region.

Out of the 15 countries where they operate, 12 needed more proper management to track employee sentiment. Moreover, the low completion rate for annual surveys couldn’t provide enough insights into the employee experience.

Introducing Amber to their organization helped the leaders connect with the 2000+ employees and actively listen to their work challenges. Amber helped them identify the employees at risk of leaving, and HR could concentrate better on those, particularly reducing attrition.

MediaCom recognized the leaders who got a high engagement score from Amber and also launched a unique project called Guardian Angels that will act as a support and mentorship group for all employees.

If you can relate to this, Amber can help.

Get a free demo today to discover how an AI-powered HR team can drive the employee evaluation process and create a successful and growing business.