Performance evaluation is one of the topics that pops up in the beginning of the year. People start filling self-evaluation forms, managers start collecting and comparing information on the annual goals and results, companies HR departments prepare for the worst time in the year – standing ready to collect annual assessment information, to calculate some salary change and find the way to communicate it genteelly to the employees.
And all that, just because we know that at the beginning of the year we are starting a new step in our development, hopping that our evaluation rate will be good enough to bring us to the so wanted next career step, or higher salary.
The annual performance evaluation process comes and goes every year just to bring us something new, to challenge us once again and wakes us for the new year cycle.
But, do we really need that process. Are we so lazy to evaluate employees performance once a year and where are all these theories coming to say that there is an ongoing feedback and ongoing evaluation during the whole year?
In the last 3 years I have had the opportunity to meet HR people and Executives from more than 110 companies in Eastern Europe, and asked them one and the same question: “If you know that this model is not working well for your company, then why do you continue using it?
And the answers I received where pure blaming:
More than 60% of the Executives answered: “You know, I really wanted to change this, but our HR didn’t offer any other model that can help us and save time.
And 72% of the HR people (HR Leaders, Executives and Experts) answered: “We tried to change this model, but there was no support from the company board of directors, so nothing happened”.
A magical circle I thought to myself. Each side blames the other for not sitting on the table and discussing changes, but instead of that keeping the status quo by finding excuses for what has not happened.
So, what can you really do if you have this hot topic on the table?
Well before measuring something you will need to know what really is important so that you can define company success and growth and each individual employee contribution to this success.
Think about how you can divide the process from the beginning. And this beginning starts with the planning. Because when you plan – you set standard for success.
Start from the purpose:
Here is where you must answer following question:
- Why do I need performance review?
- What will be the benefit from the process?
Then define the content:
This can happen if you are able to answer next short questions:
- What am I going to measure?
By answering this question you will define what is important to be measured so that you can say that individuals performance contributes to company success.
- How am I going to measure?
By answering this question you will get to a group of results that define success. This will make you think of a scale that can confirm a single employee has acted as individual contributor to the company success .
Continue with the frequency and next steps:
Answer yourself the following questions:
- How often will the results be measured?
- What will be the outcome from each measure period?
- What are the possible steps to support the process and improve performance and results level?
- How are these data going to be stored?
- How often are the stored data going to be analyzed?
- What will be the purpose of the analyzes for the process, company goals and individuals?
Answering this list of questions can give you the opportunity to start building a performance measurement system that can help senior leadership teams to define and manage company success, make line managers(leaders) see how their teams contribute to this success and position HR as a trusted partner for the company leadership team.
So are you ready to use performance evaluation as a tool to ensure company success and growth?