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Employee Evaluation

What is Employee Evaluation?

Employee evaluation is the process of assessing an employee’s performance and productivity based on their knowledge, skills, competence, and experience. It evaluates the employee’s performance’s overall impact on the achievement of organizational goals.

Also referred to as Performance Evaluation, its outcome often includes employee raises, promotions, and development of competence.

Why is employee evaluation important in HRM?

Employee evaluation helps organizations achieve the following objectives:

  • Designing fair compensation and benefits packages for employees.
  • Identifying the strengths and weaknesses of employees, thus influencing their career progression.
  • Providing constructive feedback to employees regarding their performance.
  • Creating personalized training programs for the employees.
  • Developing engagement initiatives customized to employee’s work styles, attitudes, and personalities.

How often should you conduct Employee Evaluations?

Employee evaluations can be categorized as Annual reviews, Quarterly reviews, Monthly reviews, or Weekly reviews based on their frequency. While there is no defined timeframe between evaluation cycles, statistics show that 94% of employees prefer real-time evaluations of their performance. Organizations often establish a 6-month evaluation cycle for new hires.

What should be included in the employee evaluation criteria?

An ideal employee evaluation should include the following criteria:

  • Goals and objectives
  • Job responsibilities
  • Productivity
  • Communication skills
  • Teamwork
  • Professionalism

What are the benefits of employee evaluation?

Employee evaluation offers the following benefits:

  • Assisting in employees’ career progression by nurturing appropriate skills and competence.
  • Aiding organizations in assessing the effectiveness of their hiring process.
  • Facilitating the design of effective compensation packages for employees.
  • Boosting employee productivity by acting as an intrinsic motivator.

What are some examples of employee evaluation?

Organizations customize their employee evaluations based on their organizational structure, core values, culture, and leadership vision.

Here are some of the common examples of employee evaluation:

  • Annual Performance Reviews
  • 360 – Degree Feedback
  • Self-Assessment
  • Continuous Feedback
  • Goal Setting and review
  • Skills and Competence Assessment

What is the process of employee evaluation?

Employee evaluation process has the following steps:

Understand the organization’s policies

The evaluator should have a thorough understanding of the organization’s policies and the employee’s job profile before starting the evaluation process.

Notify the employees

It’s essential to notify the employees in advance to prepare them for the evaluation process.

Define the evaluation method

Organizations should establish pre-defined criteria for assessing employees, typically a rating scale for fair evaluation.

Conduct the meeting

Schedule a one-on-one meeting with the employees to evaluate their overall progress, attitude, work ethic, and performance.

Take corrective actions

Collaborate with the employees to establish their Objective and Key Results (OKRs), discuss areas of improvement, and design personalized progression plans until the next evaluation meeting.

Thus, this is how an ideal employee evaluation looks like, and if you are looking to enhance your employee evaluation process, try Keka’s solution!

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