In order to promote the continuous improvement of human resources management as a whole within an organization, it is essential that leaders and other managers are attentive to the achievements of employee performance evaluation .

In case you don’t already know, with this practice, it is possible to map the current situation of the company in relation to the performance of employees in their different areas. Thus, the objective is to discover in which points it is possible to improve. In this way, boost individual and collective results, promoting improvements in the company’s organizational climate .

This type of practice can also increase engagement in the organization , as employees perceive that their performance is evaluated and measured according to their actions and that their efforts are being recognized.

What is performance appraisal?

Performance appraisal is a process carried out by the Human Resources department of the organization. Its main objective is to analyze the deliveries and technical skills of an employee in a given period that is being evaluated.

There are several different tools and methodologies that can be used to evaluate a professional. Ideally, the HR manager decides with the team which makes the most sense for the company’s reality. In this way, the employee understands how he will be evaluated, that is, transparency is essential.

Through a well-designed and executed performance evaluation, it is possible to identify which employees are most prepared and which need to be focused on their development. Thus, strategic performance management is carried out, aiming at the evolution of the professional and the company .

In addition, performance appraisal helps in verifying the efficiency of the organization’s hiring methods. In this way, if an employee is well evaluated, it means that the selection processes are well aligned.

For this reason and other factors that we will talk about throughout this article, performance evaluation is one of the most used tools by people management in companies to measure the performance of an organization’s employees. It is also a great technique to better structure the Variable Compensation process in the organization.

Performance evaluation is a fundamental tool for the growth of the company and also of the employee. With STRATWs One, your team is supported by a robust talent management system. 

What are the main goals of performance appraisal?

Among the objectives of performance evaluation is the fact that it offers employees the opportunity to discuss their behaviors with a certain frequency, thus seeking to focus on the continuous improvement of the employee.

In addition, it provides the manager with a strategic and clear view of the strengths and weaknesses of each employee , thus showing what needs to be improved so that the department can perform even better.

In this way, it contributes, for example, to the development of team members’ goals, to ensure a visualization of improvements. A tip that I can leave here for you is the use of the SMART methodology to help you choose your goals.

In addition, another objective of the performance evaluation is to provide a history of each employee that can be used as a basis for defining bonuses and salary adjustments to support possible dismissals and even changes in functions.

That is, if the employee is aware of how he is being evaluated and what are the points of improvement needed for him to earn a bonus or promotion, everything becomes clear, both for management and for employees. In this way, it prevents growth within the company from being something subjective.

Not to mention that the performance evaluation brings more engagement with the activities that are being performed, adapting the employees’ goals to the company’s organizational culture.

As a result, the organization itself has a lower turnover rate, preventing attrition among the team, and maintaining maximum credibility with customers.

What are the types of performance appraisal?

There are several types of performance appraisal used in the market. Each HR professional or team manager must identify which one best suits the company’s reality and culture.

STRATWs One, strategic management software developed by Siteware, includes several of these performance evaluation models, which can be performed directly on the platform. Know more:

In this sense, through an HR performance evaluation system , the company becomes more precise, enabling employees to better understand how they can support the organization itself so that everyone achieves their goals.

An example of performance evaluation that is widely used within organizations is the 360º evaluation , however, there are several other forms of evaluation that, when combined, bring the employee a new view of the business.

Below we separate 9 types of performance evaluation that can be used by a company to improve people management. Just take a look!

1 – Self-assessment

Self-assessment, also known as individual performance appraisal , is one of the main types of performance appraisal and one of the most used.

It is carried out in two stages. First, the employee responds to a questionnaire in order to reflect on their performance, identifying their strengths and weaknesses. Then, together with your superior, you discuss what can be done to improve the employee’s performance.

In this model, through self-assessment, it is possible for the assessed professional to carry out an in-depth analysis of their behavior and the results they have achieved . Therefore, when he himself recognizes his points of improvement, it is easier to promote continuous growth.

In addition, the manager is aware of how he can and should support his team, especially from the point of view of the collaborators, understanding how each one understands his own weakness.

2 – Team performance evaluation

Assessing professionals individually is important, as each one has peculiarities that define their potential. However, it is essential that an evaluation of the team is also carried out, considering that the sum of efforts is one of the main factors responsible for excellent results .

When evaluating group performance, it is possible to make adjustments to align team members, improve workflow, improve relationships and communication between employees and, thus, enhance the achievement of goals.

This model is quite interesting, because with it, the trust of the team tends to increase, since each one understands the needs and strengths of their co-workers, supporting them when necessary.

3 – Using the 9 Box Matrix to develop talents

In addition to the performance evaluation models presented above, the 9 Box Matrix is a visual tool that serves as a basis for creating a meritocracy model in companies.

From there, it is possible to better conduct evaluations and make important decisions regarding employees.

This is because it helps to develop the capacity of team members, taking into account aspects of competence, behaviors, results and capabilities. As it is a simple and practical tool, its results are relevant to any type of company, thus helping its performance.

4 – Graphic scale

Of all the types of performance appraisal, this is perhaps the simplest and most traditional.

In the Graphical Scale method, a form is created in columns organized as follows:

• In the first column, the variables to be evaluated are placed. For example: punctuality, attendance, teamwork, creativity, etc.
• In the following columns, the values of each variable are placed. For example: bad, bad, fair, good or great. You can also assign scores from 0 to 5.

The main advantage of the Graphical Scale assessment is that it is very easy to do. However, it is limited and does not allow for a more in-depth assessment.

For this reason, the Graphic Scale is often used in conjunction with other methods, such as 360 degrees.

5 – 360 degrees

The 360 degree assessment is considered one of the most complete . This is because everyone involved in the employee’s work routine is invited to participate in the process.

Leaders, team members, the employee himself and even customers and suppliers participate in the assessment. At the end of the process, a comparison is made between the evaluators’ considerations and those of the person being evaluated, generating invaluable feedback .

The logic is, as the name implies, to have a 360° view of the employee’s performance, since, often, a skewed look can happen, both on the part of the person being evaluated, and on the person himself.

In this case, with multiple views, it allows building an average, or even an evaluation roadmap, understanding that different people will have different views of what can and should be improved .

6 – Forced choice

In a form, a list is made with several strategic statements that can define the behavior of the employee. For example:

• often delays deliveries;
• does not get along with co-workers;
• keeps his schedules well;
• is a proactive professional.

Then, in front of each statement, the evaluator needs to place a “+” sign (for statements that are close to the employee’s profile) or “-” (for statements that are far from the employee’s profile).

To avoid misinterpretation and obtain reliable data, statements need to be written in a clear and objective way.

This model is very effective when there are specific points that the manager wants to measure within his team, limiting the answers given . Thus, it is understood that this assessment is quite effective in this view, but the ideal is that it is accompanied by another.

This will allow a comprehensive and specific view of what is being evaluated.

7 – Performance evaluation by competences

Competency-based assessment goes beyond performance. It considers three basic factors: the CHA .

• C – Knowledge: cognitive skills, “knowing something”.
• H – Ability: psychomotor domain, “knowing how to do it”.
• A – Attitude: motivating factor, “wanting to do”.

In this evaluation method, the questionnaire must take into account the technical and behavioral skills of the employee.

At first, the person being evaluated responds to this questionnaire in a kind of self-assessment, pointing out which skills he already has, which are under development and which still need to be developed. Afterwards, the leader exposes his point of view on the collaborator’s responses and, together, they draw up an action plan to improve what is needed.

8 – Goals and results

This performance evaluation method has a quantitative approach. Here, the results achieved by the employee in a given period are considered.

The objective is to identify whether the person being evaluated was able to meet the company’s expectations . Because it is based on numbers, this assessment is safer and more assertive.

Examples of factors to be evaluated:

• absenteeism
• sales conversion
• Clients satisfaction
• retention

The evaluation by goals and results can also be applied to the team as a whole in order to find out who the most and least productive employees are.

9 – Leader performance evaluation

The last item on our list of types of performance appraisal is often overlooked by some companies. Like employees, leaders also need to be evaluated.

The leader is responsible for leading the team towards success. When your performance goes bad, the tendency is for this to be reflected in your subordinates.

Therefore, he also needs to go through an evaluation process and receive feedback on his performance . In this case, the evaluation starts with the employees and their superiors, giving an overview of their performance.

Thus, the leader will be able to better understand if he and his team are on the right track and which aspects can be improved.

So what types of performance appraisal are best suited for your business model? You can apply internal evaluation questionnaires through automated survey platforms, with much more agility and being able to analyze the results in real time.

In fact, you can also do the opposite and ask your employees to rate the company, through a questionnaire specifically created for this, like the NPS, widely used in marketing , but which can also measure employee satisfaction.

Which performance appraisal model to choose?

It is a fact that performing performance evaluation is important for any company, regardless of size and number of employees . But, after all, which model to choose among the various options used in the market?

In the previous topics, we listed 9 of the most popular types of performance appraisal. There are several others, and there is no formula that determines the worst or the best. It is important for the HR professional to know the company’s culture and know which will bring the most benefits to the analysis.

However, it is not necessary to stick to just one methodology. Within the same evaluation cycle, it is possible to apply different methodologies, which will enrich the data and facilitate the analysis. Thus, it will be easier to find answers for performance evaluation.

The logic is to understand that each of these performance reviews has views with strengths and weaknesses. In this case, the best way is to find a set of evaluations that allows the manager to have a complete view.

Also, if the company’s Human Resources department is still young and has less knowledge about the culture, the 360º performance evaluation model may be the best option. This method allows all employees to be evaluated by people from different hierarchical levels, allowing a universal analysis of their performance.

For a more specific bias, on the other hand, the competency-based approach to types of performance appraisal may be more interesting. In it, the employee himself and his leader can identify which are the strengths and areas for improvement in their performance and, based on that, carry out a development plan.