Top methods and techniques

for evaluating employee

performance
 Performance Management
 February 7, 2022  7 min read

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Manoj Manghnani
CEO

Expert in maximizing AssessTEAM's

impact, dedicated to helping clients
achieve peak organizational efficiency
and productivity.

Employee performance evaluation

plays a major role in inspiring your
employees, improving the quality of
their work, and keeping them motivated
every day. There should be no doubt
that employee performance evaluation
is a critical aspect of any organization’s
growth. It is not only the best channel to
understand how your employees are
performing, but also a compelling
measure to get feedback about how
your business is operating overall,
whether your employees are working in
a positive way towards achieving your
goals, and what you can do to improve
employee engagement. It also provides
a foundation for determining wage
increments and succession plans for
employees and their development.

A comprehensive employee
performance evaluation process often
consists of different evaluation
methods to help determine how an
employee is performing and what the
areas are where they may need help.
Using multiple techniques can help you
get a broader perspective of the areas
where your staff needs to improve and
the steps you can take to support the
growth of your employees.

Contrary to the common belief, an

employee performance evaluation
process is not only beneficial to the
organization, but also for the
employees. This process includes the
following:

Table of Contents

 Peer review

 Self evaluation

 Quantitative evaluation

 Qualitative evaluation

 360-degree feedback

 Competency on a scale

 Continuous feedback

 Critical incident method of

performance evaluation

 Profitability evaluation

 Productivity evaluation

 Customer satisfaction evaluation

Peer review

Peer review is one of the strategies that

many organizations and employee
evaluation software have used to
enhance the traditional evaluation
process. The process of peer review
consists of gathering anonymous
feedback about an employee from
colleagues, teammates, and peers on
specific aspects of an individual
employee’s performance.

It provides a unique opportunity to

study the skills and capabilities of the
employee and helps to identify an
individual’s networking, leadership,
occupational, and collaboration skills
within an organization. Given the
intricate nature of working
relationships, this process provides a
unique chance to identify each
employee’s strengths and weaknesses,
and use this valuable data to make
decisions regarding succession
planning, building teams, and job
rotations.

Self evaluation

Self-evaluation is a vital activity to help

make your appraisal process more
efficient. When done properly, it can
provide several key inputs about the
organization. This evaluation method
provides a chance for employees to
play an active role in their evaluation
process. Thus, rather than simply being
the receiver of the management’s
feedback, the employees are given a
voice.

This provides a direct link between their

jobs and the evaluation process and
fosters better communication between
staff and management. With active
participation, employees can
experience better engagement with the
overall review process, giving
managers a much better
understanding of the individual’s
performance as well as their perception
of their performance. When self-
evaluation is developed as an integral
part of the review process, it
encourages employees to regularly
evaluate themselves throughout the
year leading to a maximum
achievement of the company’s goals.

Quantitative evaluation

Quantitative evaluation is based upon

statistics and uses various standards to
track productivity. The process begins
with the formulation of company
standards against which employee
data can be measured. It is critical to
layout standards in very clear and
precise terms without ambiguity,
leaving no chance for misinterpretation.

Some of the quantitative standards

against which the employee’s
performance can be compared are
cost standards, time standards, income
standards, ROI, productivity, and market
share standards. This data can be used
to evaluate a company’s overall goals
and also provide a foundation for
awarding promotions or raises.
Additionally, you can also use the data
to justify the termination of any staff
member for poor work performance.

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Qualitative evaluation
Qualitative evaluation goes hand-in-
hand with quantitative evaluation.
While the quantitative evaluation
model is statistical, or figures-based, it
does not provide a full picture of the
employee’s performance.

Enter the qualitative evaluation.

A qualitative evaluation focuses on the

specific performance areas that can be
visually observed, but not measured in
numbers like teamwork,
communication skills, and
absenteeism. The qualitative evaluation
is prepared by observing the employee
during the workday and gathering
descriptive, long-form informational
comments on their work behavior. It
must include comments on their daily
obstacles and challenges, their daily
work habits, and job successes

Together, the qualitative and

quantitative evaluation types will
provide an organization with a
complete picture of the employee’s “on
the job” performance.

360-degree feedback

The 360-degree feedback appraisal

method provides a chance for all
employees to submit their views and
contribute towards the overall business
goal. Under this system, an employee is
rated by his/her subordinates,
superiors, peers, and even clients and
customers. Because an employee is
evaluated from every side it is called
‘360-degree feedback‘.

Under this method, a questionnaire is

prepared which contains aspects such
as teamwork, leadership qualities, goal
orientation, motivation level,
adaptability, etc. and the relevant
person is asked to fill out this
questionnaire – albeit anonymously.
The feedback helps employees to gain
insight on how other employees
perceive their work and motivates them
to work harder and with more
dedication to realize the company’s
objectives.

Competency on a scale

This is one of the most commonly used

employee performance evaluation
techniques. Under this method, the
individual’s performance in various
areas of job duties is graded on a scale.
A wide range of criteria, including
productivity, customer service,
teamwork, quality of work, concern for
safety, etc. are evaluated. This method
can be accomplished with letters or
numbers and it usually consists of a
range that moves from unsatisfactory
to outstanding. This method also allows
employers to simultaneously evaluate
several employees.

Considering the importance of

Employee performance evaluation, it
has become necessary to have an
efficient Employee evaluation software
in place to provide a competitive edge
in an ever-changing and fast paced
business environment. With
AssessTEAM, you can control how
employees are to be evaluated based
on the job profile and also as per the
needs of your organization.

Continuous feedback

Continuous feedback, in essence, is a

method of ongoing feedback. It is
designed to take the place of the
annual performance review. It is also
essential to note that continuous
feedback is not only ongoing feedback,
but it is also an evaluation
methodology that is practical and
drives the process towards actionable
steps and development objectives. It is
not a form-filling exercise that focuses
on retrospective ratings, but instead is
the day to day engagement between
managers and their subordinates. As a
matter of fact, a recent study by Gallup
revealed that every employee
appreciates some form of feedback
from their team leaders or managers.

There are many advantages to

continuous feedback; however, the
most important benefit is that it allows
team leaders or managers to intervene
in a more timely manner when an
employee is underperforming. This
prevents a negative situation from
spiraling out of control. A simple email,
text, call or a quick drop by an
employee’s workstation can make all
the difference. Daily conversations don’t
have to be long – just a few minutes
are enough for an informal, but
continuous communication. Doing so
will pivot a negative situation into a
positive outcome that drives profitable
growth and development for the
organization as a whole.

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Critical incident method of

performance evaluation
The critical incident feedback is a
methodology that is designed as an
identification and intervention method
ONLY where the employee completed a
task or project really well, or the
employee failed miserably. It is
important to note that it is a technique
based on the event’s description. It
relies on tools like continuous feedback,
qualitative evaluation, and real-time
feedback. These incidents must be
recorded as they occur and are not left
to be dealt with retrospectively.

It is worth repeating that this

methodology is designed to intervene
in a critical scenario where immediate
intervention is required to solve a
potentially disastrous situation for the
company. The reverse is also true for a
high-performing employee.

Profitability evaluation

Evaluating its profitability is one of the

most challenging aspects for any sized
business. The business’s success is
defined by its ability to earn a profit
continually. Therefore, at-risk projects
must be discovered and highlighted to
prevent the company’s profitable
activities from becoming a loss-making
exercise.

Evaluating the profitability of

employees is often a huge challenge
with the months of number-crunching
involved. Software systems like
AssessTEAM offer this in a simpler
package. The profitability rating is
determined by calculating the total
time spent multiplied by the
employee’s hourly payment rate versus
the allocated budget for the project. If
the cost of the time spent on the project
is higher than the budget, then the
project is making a loss, and
interventions must be put into place
immediately to turn the situation
around.

Productivity evaluation
Project profitability can be greatly
affected when teams or employees
spend too much time on any given
project. Understanding where time is
spent leads to clearer and easier
managing project goals. By analyzing
the project profitability compared to
employee evaluation metrics, you gain
powerful insights into why projects do
not result in anticipated profit margins.
The AssessTEAM software system
delivers in-depth reports on how
employees perform compared to
project performance. The resulting
reports can reveal inadequacies that
can be corrected to improve the overall
bottom line.

Customer satisfaction evaluation

Customers and clients are the lifelines
of every business and organization,
regardless of the industry. The fact is,
satisfied customers are repeat
customers, and when great customer
service is lacking the business will
suffer.

Using the AssessTEAM Customer Service

objectives, you can be assured that
your customer service team always
meets its core efficiencies. Evaluating
employee customer service
performance using these objectives is
critical to organizational success.
Measuring and tracking these
objectives over time will offer great
insight into how the customer service
team is performing, what its successes
are, and where improvements are
needed. Consistent customer
satisfaction plays a major role in driving
sales and driving customer
conversions.

Looking for a flexible employee

evaluation form that supports all
job evaluation methods? Sign Up
for a free trial and see why 10,000+
HR Managers love AssessTEAM!

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