No time to read now? How about listening to the article?

Do you know what performance evaluation and how important is it for your company? Then keep following this content and learn all about it!

This is one of the tools that is attracting the most attention in company performance management and is increasingly used by HR teams. It makes it possible to analyze the collective or individual performance of employees, including their behavior. 

Discover Actio Performance Management, a software developed by People & Management professionals to improve employee performance.

In this way, it becomes a great ally when it comes to developing strategies that eliminate problems that can hinder employee performance, guaranteeing more assertive and strategic management for the organization. 

There are many ways to carry out this assessment, but to do so, you need to understand what it actually is, its objectives, advantages and, of course, the importance of this practice. In this article, we'll tell you all about it! Let's go. 

What is a performance appraisal anyway?

The performance evaluation is a tool used by the HR team to analyze the individual performance of an employee or the entire team. 

In other words, you can use it to assess each employee's skills, whether they are technical or behavioral. With these assessments, you can understand whether the methods used by the company are correct and in line with the organizational culture, as well as checking whether they are being effective in achieving the planned objectives. 

It is worth noting that performance evaluation model is carried out over predetermined periods. This is the only way to properly assess the employee's progress.  

8 types of performance appraisal

As we mentioned at the beginning of this article, there are many ways of carrying out performance appraisals. Each one has its own characteristics and objectives. Check out which are the most commonly used by HR teams:

1. Self-evaluation

Self-evaluation is a way of instigating self-knowledge in employees. In this case, they evaluate their individual performance, taking into account the issues defined by HR and their manager. It's a way of stimulating reflection and analysis of strengths and weaknesses. 

2. Consensus

A consensus performance appraisal is when the manager and employee carry out the appraisal process, determined by HR, together. For it to be efficient, both need to have good communication skills. 

3. Skills

The competency-based performance evaluation is divided into two forms: behavioral and technical. 

The first is linked to the employee's behavior, i.e. it serves to assess the level of proactivity, teamwork, commitment, interpersonal relationships and similar issues. 

The assessment of technical capacity, on the other hand, is geared to the employee's position and function. With it, the manager is able to assess specific knowledge, be it of software, equipment or an activity. 

Both are important for determining and setting new goals for employees or teams. 

4. By customers

In this performance evaluation model the employee is evaluated by the company's customers, who can be both internal and external. Customer evaluation is considered one of the most important, after all, they are the key to any business. 

5. By objectives

The performance evaluation by objectives is one of the best ways of awakening a sense of belonging in employees. With it, they are responsible for determining the actions that will be taken to achieve the expected results. 

To do this, they create a timetable and outline the objectives that need to be achieved. Everything is based on reviews of the goals achieved, analysis of each person's performance and what needs to be done. 

6. Direct 

Known as a direct or 90-degree appraisal, this is the model in which the direct manager evaluates each of the people who make up their team. 

In an ideal scenario, where the manager knows his team well, this evaluation turns out to be very advantageous. This is because they can have a more comprehensive view of the team and, with this, propose actions that will make the team grow. 

7. 180º

The performance evaluation 180º is like a two-way street. In other words, the employee is only evaluated by the direct manager who also ends up being evaluated by the team.

It's a way of improving the internal climate and learning, since in this case the manager also receives feedback. 

8. 360º

The 360º appraisal is considered the most complete model for evaluating employee performance. It is widely used in companies and organizations that have a lot of experience with this process. After all, they are big fans of the feedback culture.

In this model, the employee will evaluate both managers and colleagues, and will also be evaluated by them. This is why it is considered a complete evaluation. 

Succession plan, feedback, results analysis, 1:1 and other guidelines. Click here to find out more.

What are the objectives of this evaluation?

We know that one of the main functions of management is to guide work tasks and activities, ensuring that everything is completed on time. That's why it's common for companies to use systems to control and monitor these tasks, always seeking to optimize processes. 

That said, we can emphasize that the objective of the performance evaluation is to analyze whether the performance of the teams and all the activities carried out are in line with what is expected in order to achieve the goals set by the company. But that's not all! Among the objectives of this tool are:

• Offer employees constructive and clear feedback;
• Provide managers with a more comprehensive view of employees' strengths and weaknesses;
• Indicate the points for improvement in each employee;
• Assisting in the implementation of customized training programs;
• Provide a history of each employee's performance;
• Improve communication and interaction between teams;
• Motivate and engage employees;
• Avoid wear and tear on the teams;
• Identify the best role/activity for the employee;
• Know each other's technical and behavioral skills;
• And much more!

How to implement performance appraisals

To implement performance evaluation This applies to HR as well as the directors and managers of each area. To help you take a broader view of this process, we've prepared a step-by-step guide to how to do a performance appraisalx'

Define goals and competencies

The first thing to do is to establish the requirements for the assessment. There are two parameters for this: competencies and targets. 

• SkillsTechnical skills: these are the sets of skills, knowledge and behaviors that enable employees to perform their duties. They can be both technical and behavioral. 

• Managementare well known in the corporate world. They generally determine what has to be done and by when. They are stipulated according to each person's role and activity, always taking into account the company's objectives. 

Simplify performance management, discover Actio Performance Management software!

Set deadlines

Once the evaluation parameters have been determined, it's time to set deadlines for the evaluation to be carried out and completed. These deadlines need to be realistic, right? 

In this way, your expectations and those of the teams will be aligned, ensuring that employees have time to work and focus on performance evaluation. 

It's worth noting that this evaluation doesn't have to be carried out overnight. You can, for example, develop it in the form of a process, observing the teams and the progress they make against the established deadline.

After deciding which competencies, targets and deadlines will be used, set up a meeting with the teams to inform them of who will be next in the process and what the aim of this action is.

It is important that the information is clear and objective in order to increase engagement and guarantee more effective results. 

Tell your employees

Perhaps one of the most important stages of the performance evaluation is to warn and explain to employees the need and importance of carrying out such an action. Highlighting how it can impact their development, both personally and professionally. 

This process must be clear, transparent and involve all the company's teams. Only in this way will the evaluation be carried out in a meaningful way, making it possible to achieve the objectives of the action. At this point, the HR team can develop explanatory videos, organize meetings or prepare presentations about the process.

It is essential to leave a space for employees to ask questions or make suggestions about the performance evaluation.  

Carry out a 360° evaluation

Once the deadline has passed, it's time to analyze the progress of each employee or team evaluated as a whole. The 360º methodology is the most widely used evaluation model in this case, because it brings together different evaluations, providing numerous views and perspectives that contribute to obtaining a more comprehensive and assertive overview of performance.  

The 360º evaluation takes into account:

• Evaluations of leaders/managers;
• Peer reviews;
• Customer reviews, if any;
• Self-evaluation.

All this data must be analyzed and compared in order to reach an accurate and unbiased conclusion. 

Analyze the points to be improved

Based on the evaluations, you can already get a good idea of the points that need to be improved within the company and in the teams. To resolve them, you'll need to develop targeted strategies. 

For example, if one of the points identified is related to technical difficulties. In other words, you can suggest courses and training to solve the problem. 

With Actio Performance Management, carry out assessments linked to the company's objectives.

Offer effective feedback

You may have already realized that performance appraisals are one of the most effective ways of obtaining and providing feedback, right? They have the power to transform actions and make teams more engaged while carrying out tasks.  

But despite this, it's common for some managers not to know how to offer this feedback assertively. That's why we've brought you some tips from the book "Effective Phrases for Performance Appraisals: A Guide to Successful Evaluations". He suggests some phrases that can be used to evaluate employees, including:

• The employee achieves optimum levels of performance and accomplishment of task x;
• The employee had an excellent development in the programs / strategies that generated these results;
• The employee had their production improved in X% through task x;
• Employees are always looking for new ideas and approaches;
• The employee did not meet the targets set in the performance evaluation previous;
• Among others.

The idea at this point is that you evaluate each situation in a personalized way and use phrases that are appropriate for each one.

Last but not least, keep up the constant evaluation 

Even after identifying the points to be improved and creating strategies to put them into practice, it is still necessary to maintain the evaluation. After all, it must be constant in order to monitor and analyze each employee's performance. 

Ideally, you should create cycles for this, which can be quarterly, biannually or annually. This is because evaluations become the key to supporting and developing improvements in the results of employees and the company. This leads to an organizational culture that is aligned with the strategies and activities carried out by each person. 

To help you with this, count on Actio Performance Management! The performance management software developed by our company in partnership with Falconi. Click here to find out more. 

7 main mistakes when carrying out an assessment

Companies that carry out this process manually are more likely to make these mistakes, which are also common in companies that don't have efficient management systems, like the ones we have developed here at Actio. And although they have solutions, they can significantly hinder the company's results. individual performance evaluation or not. 

Find out below about the main mistakes when carrying out this assessment:

Halo effect:

It's a way of judging someone or something based on an observed characteristic, thus creating an image that isn't real. In this case, it's a positive pre-judgment rather than a negative one, and can lead the company to create certain expectations about the employee or team.  

Horn effect:

Much like the previous error, the Horn Effect is also a way of judging by an observed characteristic. In this case, it is negative and is based on the evaluator's dislike or ill will. 

Central tendency:

One of the most common mistakes when making the performance evaluation. It happens when managers or teams feel afraid to commit themselves or feel obliged to respond to the evaluation. Thus, they end up responding in a neutral and non-transparent way. 

Recency effect:

In it, the evaluator only considers the most recent information or facts, not out of their own volition, but out of forgetfulness. In annual evaluations, for example, this can be a big problem because many things can be overlooked.

Based on previous evaluations:

Known as the error of first impression. In this case, evaluators already have a view of the employee based on what he or she has shown in recent evaluations. In other words, they consider the results based on the previous ones and not in an isolated and complementary way, as it should be. 

Error of fatigue:

Another common mistake performance evaluation. This happens mainly when the manager has a very large team. As the process goes on, they end up making their responses automatic and therefore less analytical. This is a problem that affects the results of both the employees and the company

Similarity error:

The problem here is when the manager identifies with the employee, not necessarily in a professional way. They take personal issues into account when evaluating them, such as favorite teams, musical tastes, etc. The performance appraisal should only cover professional issues, related to day-to-day activities and deliveries.

Why automate this process?

As you have seen, companies that carry out the processes of performance evaluation are subject to uncertain results, which can become a major problem when analyzing results.

This can happen both because of the time spent on the process and the way the data is analyzed and stored. Another point is the number of employees who need to be assessed and the challenge involved in collecting the information from each of them. 

Therefore, carrying out this evaluation manually, especially nowadays, becomes unfeasible for companies looking to optimize time and processes. Imagine collecting all this data in spreadsheets or even on paper? Then analyzing them one at a time to understand the points for improvement. Just imagining it gives you an idea of how time-consuming and complex it can be, doesn't it?

That's why automating the performance appraisal process could be the best solution for your company! With good performance management and evaluation you can automate this task and make it more strategic. 

In this way, the HR team saves the effort and time spent executing, analyzing and planning the evaluation process. And as a result, your company will guarantee greater integrity and confidentiality of the data obtained. 

These automated tools have backup functionality, which keeps the data available for future reference. In other words, when you invest in automating your performance evaluation, you can have more time to do the analysis itself, and not spend it on the process of collecting the information.  

Importance for the company

Understanding employee performance is essential for company growth. The more information you have about them, the better the strategies you can develop and the better you can optimize tasks.  

Another advantage of performance appraisals that is of great importance to the company is the possibility of offering training to improve the knowledge and technical skills of each person involved in the different teams that make up an organization. 

It is worth noting that without performance there are no results and without results there is no growth. We can say that performance evaluation is one of the pillars for your company to grow and gain more and more space in the market, as it makes it possible to identify errors, make improvements and develop unique and personalized strategies for each situation. 

Now that you know what performance evaluation and that with it you can give feedback, evaluate the effectiveness of processes and actions, analyze employee productivity, among other things, how about getting to know our solution? 
Here at Actio you can find the ideal software to help you with your performance management and evaluation.