The success and stability of any company is influenced by the efficiency of its employees. Some of them actually work out their salaries, while others only give the appearance of active work, being engaged in personal affairs. To determine how the actions of each employee affect the productivity of the company, the assessment of personnel efficiency helps. It shows to what extent an employee corresponds to the position he holds, and to what extent his salary level corresponds to his contribution to the company’s development.
According to statistics, 70% of company employees are constantly distracted from the work process. Using messengers, social networks, calling home during working hours – all this prevents them from concentrating on their main duties. And only 40% of employees understand the essence of the tasks assigned to them by their managers. Because of this, companies lose 20 to 30% of their revenue every year.
To avoid losses due to irrational use of labor resources, personnel performance evaluation is applied. This is a system of criteria determining how well a person corresponds to the position he holds and how he copes with the assigned work. Studying the productivity of employees is useful not only for managers, but also for the performers themselves.
The study takes into account:
Employee evaluations accomplish the following objectives:
Based on the results of the assessment, many strategic decisions can be made that have potential benefits for the company. For example:
It is necessary to conduct a preliminary personnel assessment at the hiring stage. This will help to determine the future composition of the work team by establishing a minimum list of requirements for applicants. Once an employee has been hired by the company, he is regularly checked for compliance with the position held.
Personnel performance evaluation is necessary if the company is experiencing a constant outflow of personnel, decreasing labor productivity. Or when employees complain about poor working conditions, disrespectful attitude, low wages.
Staff appraisals are performed in the following cases:
The analysis of indicators characterizing the efficiency of personnel utilization allows the company to hire people with the right qualification level, knowledge and abilities. This allows the company to significantly reduce the cost of services of intermediaries engaged in personnel recruitment, reduce the number of interviews in the company.
Increase the efficiency of each employee can be improved at:
It is necessary to assess the competence and quality of personnel work on a regular basis. Every business representative realizes this. But how can this be done correctly? After all, a person can quite cope with his duties, but at the same time constantly distract his colleagues, asking for their help. Or not meet the deadlines. For this reason, the efficiency of each employee is determined on the basis of many indicators, including labor costs and time spent on work. In Japan, for example, this indicator is determined on the basis of each employee’s abilities.
Based on the assessment of personnel performance, they develop a system of bonuses and rewards. They make decisions on their transfer to new positions or dismissal.
In order to properly evaluate the efficiency of an employee, it is necessary to consider his working, personal, and behavioral characteristics. For this purpose, performance evaluation criteria are used to determine how each function should be performed. The criteria are developed by company managers together with representatives of the HR management service or together with subordinates.
The joint development of evaluation criteria has a lot of positive aspects for the company. They will be understood by the management staff and performers. They will not cause rejection among the performers. They will be based on the peculiarities of each specific work process.
In terms of coverage, the way of evaluation, the criteria are divided into:
The development of evaluation criteria begins with the identification of a list of positions. The functional responsibilities of the selected groups are then defined. The possibility of applying the criteria for each specific case is analyzed. The amount of information about the object of research is taken into account, the importance of each criterion applied in personnel assessment is specified.
Examines the professional, personal qualities and knowledge of employees. This category includes:
Competency assessment also includes job performance, attitude, work ethic and company loyalty.
The performance of each employee is compared with the indicators planned for his position. Before an employee’s performance is evaluated, he is assigned specific tasks. Performance is measured in the volume of sales per month. It can also be displayed in the number of realized projects or concluded deals for the reporting period.
KPI or Key Performance Indicators are expressed as a percentage:
To assess performance using the KPI method, a table divided into two columns is used. In one of them write down the evaluation criteria (quantitative or qualitative, individual or team). The second column contains the competencies approved for the position. The head of the unit assigns numerical values of 0 or 1 to the selected indicators, based on his own observations. The numerical values in each row of the table must be equal to one.
The effectiveness of KPI indicators has three levels:
KPI indicators are assessed at the end of the reporting period. Qualitative values are assessed on a 100-point scale. Quantitative values are measured using the metric system. To determine the private result of an employee, the formula is applied:
(Actual data minus base KPI /Norm minus base) × 100% = percent result.
The data obtained shows the extent to which the employee has met or exceeded his target. If the KPI is above 100%, the employee’s performance is high. If this parameter is below 100%, it indicates that the staff is working inefficiently.
Each organization develops its own evaluation criteria, taking into account its specifics.
Various methods are used to determine the performance of a company’s employees. According to the direction, method of evaluation they are:
Qualitative. Otherwise known as descriptive. This includes:
Quantitative. Expressed in numbers. They give a more objective idea of the usefulness of each member of the work team. They include:
Combined. Combine quantitative and qualitative methods. They give the most complete and objective assessment of employee performance. These are:
The listed technologies provide an incomplete assessment of personnel performance or their socio-psychological qualities. Therefore, comprehensive methods based on a combination of all assessment approaches have recently gained popularity.
These methods of analysis are used for in-depth study of professional qualities of employees in order to effectively utilize the company’s human resources potential. On their basis they calculate ways to increase labor productivity at the enterprise, develop measures to reduce expenditures on wages of incompetent employees. These methods include:
When applying these methods to evaluate staff performance, it is important that they are objective and easy to understand.
Assessing the activities and performance of a company’s employees is a complex process that requires a lot of time and patience on the part of management. To make the personnel’s work successful, it is important to set clear and achievable goals for the employees. It is important to control the fulfillment of tasks and give appropriate assessment of the actions of the performer.
A reliable assistant in organizing the working time of staff will be specialized programs designed to systematize and promptly solve any tasks.
The key to successful work of any team is rational distribution of tasks to competent employees. In order to achieve efficiency from employees it is necessary to:
The usefulness and performance of employees should be monitored. It is more convenient to do it with LeaderTask tools:
The application’s functionality includes such options as: an assignment execution control program, an organizer, a task scheduler for iPhone and other devices. Using the program, you can avoid loss of important information and waste of time in key business processes, make the process of execution of orders clear and accessible to all employees.
The function of the HR department and company management is not limited to assessing the performance of employees, identifying “problem areas” and dismissing incompetent specialists. It is possible to get a positive result from the work of subordinates by offering them transparent and mutually beneficial cooperation in return. Personnel performance evaluation should be a constructive dialog that benefits both parties.
The results of the study are formalized in the form of reports or tables that contain detailed information about the employee. Based on them, the management makes a decision on his further employment with the company.
There are many techniques for studying performance. They have both positive sides and disadvantages. Therefore, when choosing a research method, it is important to take into account such factors as the structure of the company’s personnel, the specifics of its activities, and relations between employees.