The success and stability of any company depend on the efficiency of its employees. Some people genuinely earn their salaries, while others create the appearance of active work while attending to personal matters. Assessing the effectiveness of personnel helps determine how each employee’s actions impact the company’s productivity. It demonstrates how well an employee matches their position and whether their salary level corresponds to their contribution to the company’s development.
According to statistics, 70% of company employees are constantly distracted from their work processes. The use of messengers, social networks, and personal calls during working hours all hinder the ability to focus on their core responsibilities. Only 40% of employees understand the essence of the tasks assigned to them by their supervisors. As a result, companies lose 20 to 30% of their revenue annually due to this inefficiency.
To avoid losses caused by the irrational use of labor resources, employee efficiency assessment is applied. It is a system of criteria that determines how well a person fits their position and how they handle their assigned tasks. Studying employee productivity is beneficial not only to managers but also to the employees themselves.
“Assessing Employee Efficiency: Why It Matters
During the research, the following factors are taken into account:
Assessing employees helps achieve the following goals:
Based on the results of employee assessments, various strategic decisions can be made that have the potential to benefit the company. For example:
Preliminary personnel assessment is necessary, especially when a company experiences constant employee turnover or a decrease in labor productivity. It is also essential when employees complain about poor working conditions, disrespectful treatment, or low salaries.
Employee assessment is performed in the following cases:
Analyzing indicators that characterize the efficiency of personnel usage allows the company to hire people with the required qualifications, knowledge, and abilities, significantly reducing expenses on recruitment agencies and the number of job interviews.
Improving the efficiency of each employee can be achieved through:
It is essential to regularly assess the competence and quality of employees’ work. This is understood by every business representative. However, the question remains: how to do it correctly? After all, a person can perform their duties well but constantly distract colleagues, seeking their help, or fail to meet established deadlines. For this reason, the effectiveness of each employee is determined based on multiple indicators, including labor costs and time spent on work.
In Japan, for example, this indicator is determined based on each employee’s abilities.
Based on the assessment of employee performance, companies develop bonus and reward systems and make decisions about promoting employees to new positions or terminating their employment.”
“Evaluation Criteria for Employee Performance
To properly assess an employee’s efficiency, it is necessary to consider their work-related, personal, and behavioral characteristics. Evaluation criteria are developed in collaboration between company managers and HR representatives or with the employees themselves.
Collaboratively developing evaluation criteria has several advantages for the company. They are more understandable to management and employees, do not lead to resistance from employees, and are based on the specifics of each individual work process.
Evaluation criteria can be categorized based on their scope, assessment method, and objectivity into:
The development of evaluation criteria begins with identifying a list of job positions. Then, the functional responsibilities of the selected groups are determined. The feasibility of applying criteria for each specific case is analyzed. The amount of information about the object of study is taken into account, the importance of each evaluation criterion is clarified, and it is adjusted to fit the peculiarities of each specific work process.
This assesses the professional, personal qualities, and knowledge of employees, including:
Competency assessment also includes the execution of job responsibilities, work attitude, work discipline, and loyalty to the company.
The results of each employee’s work are compared to the benchmarks set for their position. Before assessing an employee’s performance, specific tasks are assigned to them. Performance is measured in terms of sales volume for a month, the number of completed projects, or deals closed during the reporting period.
Key Performance Indicators (KPI) are expressed as a percentage and include:
To evaluate performance using KPI, a table is used, divided into two columns. In one column, evaluation criteria (quantitative or qualitative, individual or team-related) are recorded. In the second column, competencies approved for that position are indicated. The head of the department assigns numeric values of 0 or 1 to the selected indicators, based on their own observations. The numeric values in each row of the table should sum up to one.
KPI indicators have three levels:
KPI indicators are evaluated at the end of the reporting period. The assessment of qualitative values is made on a 100-point scale, while quantitative indicators are measured using a metric system. To determine an employee’s specific performance, the following formula is used:
(Actual data minus basic KPI / Normal minus basic) × 100% = result in percentage.
The obtained data show how much the employee has met or exceeded the norm set for them. If the KPI is above 100%, the employee’s performance is high. If this parameter is below 100%, it indicates that the staff is not working efficiently.
Each organization develops its own evaluation criteria, taking into account its specific characteristics.
Various methods are used to determine the effectiveness of employees in a company. They can be categorized based on their direction and assessment approach as follows:
Qualitative Methods (Descriptive):
These methods may provide an incomplete assessment of employee performance or their socio-psychological qualities. Therefore, in recent times, comprehensive methods based on a combination of all evaluation approaches have gained popularity.
These methods are used to conduct an in-depth analysis of employees’ professional qualities to effectively utilize a company’s human resources. They help calculate ways to increase labor productivity within the company and develop measures to reduce costs associated with the employment of incompetent workers. The following methods fall under this category:
By applying these methods to assess employee effectiveness, it is important that they are objective and understandable.
Assessing the performance and productivity of company employees is a complex process that requires significant time and patience from managerial staff. To make the work of employees successful, it is important to set clear and achievable goals for them, monitor task execution, and provide appropriate evaluations of their actions.
A reliable tool for organizing the work time of personnel is specialized software designed to systematize and efficiently solve various tasks. For example, the modern planner LeaderTask.
The key to the successful operation of any team is the rational distribution of tasks to competent employees. To achieve efficiency from employees, it is necessary to:
The usefulness and effectiveness of employees need to be monitored. This can be conveniently done with LeaderTask tools:
The application’s functionality also includes features such as task execution control, organizer, task planner for iPhone, and other devices. By using the program, you can avoid the loss of important information and unnecessary time spent on key business processes, making the task execution process clear and accessible to all employees.
The role of the HR department and company leadership is not limited to assessing the effectiveness of employee work, identifying “problem areas,” and dismissing incompetent specialists. To achieve positive results from subordinates, it is essential to offer them transparent and mutually beneficial collaboration in return. The evaluation of employee performance should take the form of constructive dialogue that benefits both parties.
The results of the assessment are documented in reports or tables that provide detailed information about the employee. Based on this information, management makes decisions about their continued employment within the company.
There are various methods for assessing performance, each with its own strengths and weaknesses. Therefore, when choosing an assessment method, it is important to consider factors such as the company’s personnel structure, the specific nature of its activities, and the relationships among employees.