Workforce performance evaluations may seem like a heap of paperwork. Your HR department spends many days, weeks, perhaps months each year to ensure your team leaders complete their employee performance evaluations on time. Why do they go through this?
It is to motivate the employees and help team leaders to spot their best performers on the team. Appraisals help keep track of high performing workers in order to reward them appropriately. They also help you to document below-average work-related outcomes of poor performers in the workplace.
However, there’s more to it!
It’s vital to reward employees who meet or exceed performance standards. By recognizing their contributions, you are showing their value to the department and company. How do we establish a set of rationale criteria to find the best employees who deserve a reward?
An effective performance management system brings out a simplified mechanism to spot the performers and recommend development for others, On the other hand, every employee wishes to be productive, learn new skills, and earn a reward in the future if they’ve missed the mark. An employee performance evaluation gives the people who are below the expected standards a baseline to learn how to improve in order to be viewed as successful next time around. The workforce performance evaluation is the technique that provides the measurement for creating a performance-driven culture within an organization. This practice will go far in creating a workforce that is engaged and productive. Here’s what performance evaluations do in general.
Reward the best-performing workforce
Performance evaluations allow the team leaders to meet with their employees to go through the achievements of the previous year and map out future goals and KPIs concerning the employee’s performance. By opening up the lines of continuous feedback, you can keep every employee in the team perfectly aligned with the department’s and company’s mission. This also helps to refresh the job description of some employees and make them more aligned with the overall company strategy.
With analytics driven by performance evaluations, a team leader has the tools at-hand to gauge individual performance to find out top performers for further development and decide performance-based compensation plans.
Reduce employee turnover
Reasons often behind employee turnover including the increase in pay, better workplace experience, more interesting work, opportunity to learn new skills, and valuable recognition upon performance.
A meaningful performance evaluation can be used as the baseline of employee’s past achievements, and skills/competencies. This information can be used to discover better ways to motivate employees and leverage their full potential. Analysing and supporting each individual’s work-related needs will create a highly motivated workforce that strives for the best results.
How will performance evaluations improve retention?
Based on the information gathered in a performance evaluation, team leaders can compare goal achievements, current skills and develop a training plan to provide the workforce with continuous learning. This act certainly forms a positive recognition and leads to better job satisfaction, competent workforce and improved retention, as your organization is equipped with a workforce who are highly productive, constantly learning new skills and being challenged to do their very best.
Identifying areas for improvement
A prime objective in a performance evaluation is to address the employee’s ability to reach his or her goals/KPIs and contribute to the organization’s mission. The evaluation helps you to discuss the causes of any challenges related to goals, work together on resolutions and concentrate on future actions. Having the ability to provide/receive continuous feedback on every goal helps employees and team leaders to be focused on faster accomplishments. If any obstacles are observed related to a skill gap, you can propose training plans and help the employee to bridge the skill gaps in the future.
In a nutshell, performance evaluations are helpful to increase retention, spot the best performers and convert poor performers to better resources in the future. Stay tuned for more articles by Microimage HCM Cloud team on our Performance Management Module.