Boy playing basketball and making a basket in the reasons why it is important to evaluate performance

July 27, 2020

Why should performance be evaluated?

The job performance evaluation is a key process for companies of any size or industry sector. All companies in the world depend on their human team. It is essential to align the individual development of each employee with the development objectives of the organization. To achieve this, Human Resources departments resort to performance evaluation as it allows them to implement continuous improvement processes and have data for strategic decision-making.

The evaluation measures how each worker perform their professional skills, achieve their goals or how aligned they are with the corporate values or functions specific to the position they occupy.

Even those companies that do not have a formalized performance evaluation process evaluate. Even if unstructured, subjective, and without a report or feedback meeting to back it up, supervisors, peers, subordinates, and customers consistently rate those they interact with at work. Does it look familiar?

However, an effective performance appraisal process enables adequate talent management and has a very significant impact on the organizational culture, satisfaction and motivation of employees and overall productivity levels.

We summarize some of the many reasons why it is so important for your organization to carry out a continuous process of Performance Evaluation:

1. Assess for potential

The evaluations allow us to detect the potential and trace the professional trajectory of the collaborators with the longest journey in the medium and long run to establish loyalty and development strategies. That is why evaluation processes are the cornerstone of strategic talent management. Without an effective assessment tool, you may never discover the talent of the people on your team, and in which the future of your organization may depend!

2. Evaluate to identify high performers or people with the best performance

Knowing who the best performers are will help us turn to them for the most difficult or key projects for the organization in the short term. But watch out! Being great at your job doesn't guarantee high potential, which is why it's so important to launch both types of assessments - performance and potential - and correlate the results in a Talent Matrix.

3. Evaluate to establish new goals

As you already know, motivation and productivity are inseparable. Those collaborators who are constantly motivated trying to achieve their objectives will have a better chance of improving their results. In addition, the evaluation is also the perfect occasion to redefine the goals taking into account the changing conditions or the development plans that each professional pursues. Setting new goals -achievable and challenging- once we know our current results, will stimulate employees who will see how they can constantly improve in their Professional Career, take advantage of Action Plan in your Feedback meeting!

4. Evaluate to have People Analytics

Another advantage of launching performance evaluations is that the organization will be able to count on solid data to base its strategic decisions. They are also known as Talent Analytics or HR Analytics and encompass all the information that makes it possible to guide short, medium and long-term objectives with greater chances of success.

Over time, Human Resources departments have evolved from a more operational position to a more strategic one. At this point, the data related to the management of people (both in their administrative management and in talent management) are analyzed to make decisions related to training plans, remuneration policies and compensation, career plans, attraction of new talent or their loyalty. It allows companies to be proactive instead of reactive.

It is about converting data into information and information into knowledge.

5. Evaluate as a Transparency method

When a company has a formal performance measurement process that is shared and known by all, the decisions derived from it will be fairer. If, for example, you design a compensation policy based on meritocracy, it will be better accepted than if it were based on random or changing criteria.

If, in addition, your performance evaluation process is digitized, the reports reported will be much more solid. With no room for error in calculations, people will have greater confidence in the entire process, from start to finish.

And do you know why transparency in organizations is good? Because it helps you have a solid corporate culture that manages to retain talent!

6. Evaluate to improve job matching

Thanks to the detection of gaps, both positive and negative, we can identify those people who may not be occupying the right position based on their strengths or areas for improvement. That the company knows and recognizes the strong points of each worker not only facilitates the distribution of tasks, it also favors individual motivation. A person who is allowed to develop their best abilities will be closer to get into the flow and inspire others.

7. Evaluate to manage telework

Through evaluations we can promote conversations between supervisors and those collaborators who telework. And not only that! By evaluating indicators related to the home office, we will also be able to detect whether people who work remotely have the skills and resources needed to do it effectively.

Remote work is here to stay as one more option for companies and professionals. But the right tools are needed to keep teams cohesive and leaders prepared for that challenge.

8. Evaluate to give every team member a voice

Evaluation is a great opportunity for employees to express themselves. Knowing that their managers will listen to them makes it easier for the worker to convey their ideas, concerns or problems and, thus, improve the level of job satisfaction. But not only that, some of the best strategies started from an idea that was heard and taken into account. If we seek to stimulate intra-entrepreneurship, we must ensure that there are communication channels, spaces for dialogue and springboards to make the leap.

What are you waiting for? Be the change you want to see in your organization! For much less than you imagine, you can count on powerful and agile technology that adapts to your needs. Try it out!