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The Importance of Continuous Employee Performance Evaluation

The Importance of Continuous Employee Performance Evaluation

If you follow trends in employee evaluation, you may already know that many modern organizations are moving away from the traditional model of once-a-year evaluations. Continuous employee performance evaluations are becoming the new norm, and there are many reasons why it’s now the preferred method for performance evaluation.

 

How does continuous employee performance evaluation work and how can you start implementing it into your organization? We’ll cover everything you need to know in this article. 

Why is Continuous Employee Performance Evaluation Important?

 

Continuous employee performance evaluation is a process of regular coaching and feedback that the employee and manager engage in. Here are some of the many benefits it can bring to teams in an organization:

 

  • This method helps remove unnecessary policies 
  • Gives employees timely and actionable feedback
  • Employees and managers always know where they stand
  • Consistent opportunities for development
  • Skill gaps close faster

 

In addition, organizations get more out of continuous employee performance evaluations because there are no longer any waiting periods. Employees have frequent check-ins to see how they’re performing and to raise any concerns they have. 

 

Continuous employee performance evaluations take company progress and development to a higher level. 

 

However, those new to this type of employee performance evaluation might be lost on how to begin. Starting out with an effective tool will help the process start off smooth. Below you’ll find other tips on how to switch to a continuous employee performance management model.

 

How to Approach Continuous Performance Evaluations the Right Way

 

Any structural change within an organization will be met with difficulty. Employee performance evaluations are no different. To make sure your organization can start seeing the positive results of continuous employee performance management, it’s important to follow the below steps listed out.

 

How to Prepare to reach the best results (Employer & Employee)

These steps will help both managers and employees get the most out of continuous performance evaluation:

 

1. Communicate mission, values, and goals

Not only does an organization need to state clearly what their mission and goals are, but those objectives must be translated into the daily work of teams and employees. This is how the mission, values, and goals will be taken seriously in the organization. Communicating these expectations helps employees and teams be better aligned with those goals.

 

2. Take advantage of 1 to 1 talks

Start holding regular 1 to 1 talks with employees. Doing these casual check-ins on a weekly is a good way to start assessing performance and giving feedback. For further reading, we have an article on how to use 1 to 1 talks effectively within your organization.

 

3. Managers should act like coaches

Managers are a big part of the continuous employee performance evaluation process. We like to think of managers as coaches—guiding the employee along in their progress. This type of dynamic makes evaluations less intimidating, more engaging for employees, and encourages individuals to do their best work.

 

4. Implement 360 degree feedback

Having a good feedback model goes along well with employee performance evaluation. Implementing 360 degree feedback requires some big changes within an organization, but it helps give a well-rounded view of individual employees as well as leaders. Learn more about this type of feedback system here.

 

5. Create custom employee development plans

Employees today are more ambitious than ever, and they not only desire fair compensation, but they also hope to find meaning and purpose in their everyday work. Managers should be trained on how to sit with an employee and work together with them to develop a custom map of where the employee wants to grow in their career.

Then, those personal goals and initiatives should be aligned with the goals of the organization. This keeps employees motivated and brings benefits to overall company performance.

 

6. Use an effective tool to help

Using a tool for the continuous performance management process can help managers cut down a lot of the required time and work that goes with this model. Heartpace’s performance management system helps organizations set objectives, collect feedback, keep track of progress in 1 to 1 talks, and much more. Learn more about how adopting this tool can help your organization.

 

 

 

Okay, so now you understand the steps to implementing continuous performance evaluations within your organization, but once you’ve done this, how do you know what to measure? Every company will be different in what measurements are most important in relation to goals, but we’ve collected some examples to get you thinking about metrics. 

 

What to Measure

Here are some of the biggest measurement items to take into consideration:

 

Productivity 

This is probably the most common way to measure employee performance. Productivity is measured through things like:

 

  • Number of blog posts produced in a month
  • Product units produced in an hour
  • Sales calls made in one week
  • Customer support tickets handled in one day

 

Quality

When measuring productivity, it’s important to not forget quality. Quality is measured in the following ways: 

 

  • Traffic and conversions from blog posts
  • Quality of product units produced
  • Number of solid leads from sales calls
  • Satisfaction levels of customers with support tickets

 

Meeting goals and objectives

Another big item to measure employees against for performance evaluations is how on track they are in meeting their goals. With continuous evaluation, it’s easier to spot whether objectives are close to being met and what adjustments need to be made. This metric specifically can help the employee be more effective at their job.

 

Training

Taking on new skills is a huge part of employee development. It’s important to have this metric as part of employee performance evaluation because it shows improvement of abilities over time. Try coming up with training whether that’s an online class, going to a conference, or meeting new mentors as part of the performance evaluation.

 

You get the evaluation results

You’ve analyzed performance and collected the results from the evaluation. Now what? 

 

Using the data collected from 1 to 1 talks, follow-up meetings, and goal achievement, the next step would be to discuss salary and job position/promotion. After all, employees should experience reward for all of their hard work! When companies acquire top talent, it’s imperative to the organization’s success that those individuals are on the proper development paths. Then, they can become more valuable over time. 

 

Our new module can help you keep track of these end-goal items (salary, promotion, etc.) so you don’t have to do any of the heavy lifting, and reviews will no longer be a dreaded process!

 

Henrik Dannert

CEO

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