how to Employee Performance Evaluation

7 effective methods to evaluate human resources for all businesses

Personnel evaluation is an important activity in the human resource management of an enterprise. Depending on the evaluation objectives, characteristics of the business and the nature of the employee’s work, the unit can choose an appropriate evaluation method. Let’s learn about 7 effective human resource assessment methods for all businesses that are being prioritized for application today.

Why do businesses need to periodically evaluate personnel?

Periodic personnel evaluation is an important activity in the human resource management of an enterprise. Evaluation helps businesses have an objective view of the capacity, work efficiency and working attitude of each employee. From there, businesses can make appropriate decisions about recruiting, training, fostering, promoting, rewarding, and disciplining employees. Here are some reasons why businesses need to periodically evaluate personnel:

  • Evaluate employee capacity and work efficiency: Identify employee strengths and weaknesses, level of job completion, and compare job performance with set goals.
  • Make appropriate decisions about recruitment, training, development and reward of personnel: Recruit suitable employees, train employees to improve capacity and skills, develop employee potential and reward employees based on work performance.
  • Improve the operational efficiency of the human resources department: Help the human resources department manage employees more effectively, motivate employees to work more effectively and improve the labor productivity of the business.
  • Attract and retain talent: Show the business’s take care of employees, create a fair and transparent working environment, and help employees feel appreciated for their abilities.

Employee evaluation criteria

Choosing appropriate evaluation criteria is a key factor for an effective evaluation process. Currently, there are many ways to evaluate employees, including:

  • Work efficiency: Level of completion, quality of work, labor productivity and ability to achieve set goals.
  • Competencies and skills: Professional knowledge, soft skills, ability to solve problems, learn and adapt.
  • Working attitude: Professionalism, responsibility, discipline, cooperation and work awareness.
  • Ethical qualities: Honesty, integrity, respect and keeping trust.
  • Development potential: Ability to learn, lead, adapt to new environments and develop yourself.

7 methods to evaluate employees

Effective employee evaluation plays an essential role in human resource management. Your business can refer to 7 popular employee evaluation methods including:

Evaluate using KPIs

The first method is that you can use key performance indicators (KPIs) to measure work performance, motivating employees to focus on goals. KPI (Key Performance Indicator) is a system of indicators to measure work efficiency. Using KPI to evaluate personnel is an effective method that helps businesses evaluate the capacity and work efficiency of each employee objectively and accurately. However, identifying appropriate KPIs and avoiding over-focusing on certain aspects is something to keep in mind.

360 degree cross review

Use the 360-degree cross-assessment method by collecting feedback from many different sources such as colleagues, superiors, subordinates and customers. The purpose of this employee evaluation is to provide a comprehensive view of the employee’s capabilities and work performance. However, this method can be time-consuming and costly, and is influenced by subjective factors.

Evaluation based on target indicators – MBO method

MBO (Management by Objectives) method is a management method by objectives. The MBO method focuses on determining the overall goals of the business and the personal goals of each employee, then monitoring and evaluating work performance based on the level of goal accomplishment.

This method contributes to motivation and helps employees and managers share the same goal. However, setting appropriate and challenging goals can be difficult.

Evaluated according to the capacity scale

Use a scoring scale to evaluate employee capabilities based on specific criteria, providing detailed information about employee capabilities. However, this method can be affected by subjective factors of the evaluator and makes it difficult to compare work performance between different positions.

Evaluation according to the ASK model

The ASK model is an employee capacity assessment model based on 3 factors:

  • Attitude: Includes working attitude, sense of responsibility, sense of discipline, ability to adapt to the working environment, etc.
  • Skill: Includes professional knowledge, soft skills and practical skills related to work.
  • Knowledge: Includes industry knowledge, market knowledge, knowledge about the business’s products/services, etc.

This method often focuses on evaluating employee attitudes, skills and knowledge. This helps identify areas that need improvement. However, this method is time-consuming and expensive, and it is difficult to evaluate employee attitudes.

Evaluate according to checklist

Use a list of criteria to evaluate work performance, provide specific information and make it easy to follow. However, this method is also affected by subjective factors and makes it difficult to compare work performance between different positions.

Behaviorally anchored assessments (BARS)

Describe the specific behaviors required to perform the job well and evaluate how often the employee exhibits those behaviors. This employee evaluation policy is considered objective and transparent, helping employees clearly understand the necessary behaviors to perform well on the job. However, building a behavior description table is time-consuming and expensive, and difficult to update when there are changes in work.

Analyze your HR strategy with experts from Kounselly!

Kounselly connects businesses with leading reputable human resource strategy consultants in Vietnam. With a team of experienced experts and extensive professional knowledge, we bring optimal solutions to improve the operational efficiency of the human resources department and develop human resources in a sustainable way.

Kounselly helps you:

  • Improve the operational efficiency of the human resources department, optimize processes and resources.
  • Attract and retain talent, build a high-quality staff team, and meet the development needs of the business.
  • Improve labor productivity, promote employee creativity and work efficiency.

Above are 7 effective human resource assessment methods that every business can apply. Each method has its own advantages and disadvantages, so businesses need to consider carefully. In addition, you can also contact Kounselly directly for more detailed advice and support.

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