Evaluation indicators: best practices

Although, in some organisations, performance analysis is carried out by software solutions, the evaluation indicators are still one of the company's supports when it comes to personnel decisions.

Performance evaluations based on these KPIs apply to:

• Time to identify problems and discuss possible solutions.
• Self-management by the employees themselves, which, thanks to the metrics provided by the evaluation indicators they discover a new perspective on their performance and can determine what additional training they need to improve or where to direct their personal and professional growth efforts.

Indicators also give employees the focus and evaluations that make them feel that their good work is recognised. But for this to happen, it is necessary to be able to access this information. For this reason, it is considered that an important part of the success of this type of staff appraisal system lies in the ability of management to be able to communicate well with their staff.

The establishment of evaluation indicators must be preceded by a performance and development plan., The aim of the project is to develop a set of standards and expected goals in terms of outcomes, but also in terms of skills development.

How to establish evaluation indicators

The form of configure the evaluation indicators would be, on the one hand, deciding who will be involved in the process. The perspective offered by a 360º evaluation is not the same as that offered by a 180º evaluation., for example.

It is also important to determine the periodicity with which surveys and measurements will be carried out. Considering the time and resources that need to be invested to achieve a complete picture of performance in the company, it may be worthwhile:

• Schedule a single evaluation per year.
• Combine notes to collect the most relevant information on a quarterly basis, do six-monthly reviews and complete the outlook with a full review at the end of the year.

When establishing evaluation indicators, it should be borne in mind that both quantitative and qualitative indicators are important., Both should therefore be reflected in the assessment, so that the results of the analysis accurately reflect reality.

The environment in which evaluation indicators should be applied

In practice, when carrying out a performance assessment the following steps have to be followed:

1. Asking the employee to rate him/herself. Depending on the type of performance appraisal you want to apply, you will also have to ask your superiors, peers and/or subordinates to answer questions and give ratings.
2. Provide the results of the performance evaluation in writing to the employee., The European Commission has developed a new toolkit, so that you can access information on the positive and negative aspects with specific examples.
3. Hold a meeting within 48 hours.
4. Note any employee comments and incorporate them into the final version. complementing the metrics and data that were collected through the evaluation indicators.

This method facilitates the introduction of improvements in procedures, habits or even the motivation of staff members, increasing the effectiveness of the adjustments.

How to get the most out of evaluation indicators

For evaluation indicators to be considered appropriate, they must allow for quantifiable and achievable targets to be set. to improve core business activities, not just now, but over time.

The way to get the most out of these KPIs is:

• Relating them to the overall business objectives.
• Establishing them in a way that allows progress to be measured in areas that will influence the success of the business.
• Articulating them around the most dynamically evolving areas.

Finally, it is also important to bear in mind the importance of regularly rethink the evaluation indicators, while updating the business plan. This makes it easier to stay aligned with changing market requirements.