In order to manage your company efficiently, it is essential to understand how your employees are performing. In this context, performance evaluation has emerged as a great partner for managers.
In theory, performance appraisals help to measure workers' performance and make the best decisions based on data. But what happens is that many leaders end up making some crucial mistakes that turn the whole project into something ineffective.
With this in mind, in this post we'll explain the positive and negative points of performance appraisals, as well as tips on how to draw up an appropriate plan. Read on and find out.
What is performance evaluation?
First of all, it's important to know that performance evaluation is a tool used by many organizations to identify the strengths and weaknesses of the site as a whole. In addition, the model also serves to assess the achievement of pre-defined goals and objectives.
In general, evaluation can be carried out in various ways. For example, by analyzing quantitative data, such as productivity and sales indicators per professional, or qualitative data, such as the communication skills and teamwork of each professional.
The main objective of this tool is to help leaders make the best decisions for the development of the company. But for this to happen, it is important that the evaluation is carried out in a fair and transparent manner, as well as being an ongoing process.
Why is performance evaluation a good strategy?
Provided it is applied with clear and objective criteria, performance appraisals can change your company's management for the better. Managers now have a clearer view of employee and team performance, which helps them make more assertive decisions.
In addition, performance appraisals can also be a motivating tool for employees, as they allow them to receive clear and frequent feedback on their performance and to seek improvements in order to develop professionally.
Another advantage of the tool is that the company is better able to identify its internal talent and invest in more effective career and training plans. Retaining talent is essential, given that it is estimated that redundancy costs can reach 15 times the value of a salary.
The model also allows the company to monitor and evaluate internal processes. In this way, it is possible to identify points for improvement and adjust to the organization's needs in order to increase efficiency and productivity. As a result, the company can become more competitive and stand out in the market.
According to a study by the Aberdeen Group, companies that have a well-structured evaluation system are 42% more likely to achieve their financial goals. In other words, keep in mind that for your company to achieve the results you expect, you need to put together a clear and well-structured plan.
What are the main mistakes when applying the tool?
There are some common mistakes that managers can make when applying performance appraisals, such as:
1 - Lack of transparency in the evaluation's objectives and criteria: if these two points are not clear and communicated smoothly to the company, employees may not understand how they are being evaluated, resulting in an unfair and unreliable plan;
2- Lack of feedback and continuous monitoring: the performance appraisal model should be a continuous process and not just an annual thing. Therefore, employees should receive frequent feedback so that they can improve more and more;
3- Lack of employee participation: if the company's professionals don't actively participate in the evaluation process, it can lead to a lack of transparency and commitment to the results;
4- Performance evaluation being used as a form of punishment: when the tool is used to belittle employees or humiliate them in front of the whole team, it can become demotivating and compromise the company's organizational culture;
5- Lack of training for evaluators: in many cases, managers are not trained to evaluate employee performance effectively, which can lead to inconsistent and unreliable evaluations.
These are just some of the main mistakes that can happen when applying performance appraisals. That's why it's important for managers to be aware of these mistakes and to work as well as possible with software such as Actio Performance Managementto avoid them.
How can technology increase the productivity of performance evaluation?
After all this information, you can understand the importance of correctly implementing performance appraisals in your company.
In order not to bureaucratize your team's processes and internal communication, consider implementing software that can help you with this, such as Actio Performance Management. Desenvolvido pela Actio para atingir os níveis de excelência desejados no tocante ao universo de Gente & Gestão, o Actio Performance Management contou com toda a expertise da Falconithe largest business and people management consultancy in Latin America.
With Actio Performance Management, você simplifica a sua gestão de desempenho e alinha, de forma mais simples, os objetivos dos colaboradores aos da sua empresa. Não deixe de pedir um orçamento aos nossos consultores.
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