A well-developed personnel evaluation system can motivate employees. Now that the company is up and running, there are probably many managers who want to start working on the personnel evaluation system. In this article, I will introduce how to create a personnel evaluation system that will be beneficial to employees.
Reasons why you should introduce a personnel evaluation system
Here are three reasons why you should adopt a personnel evaluation system.
If you have a personnel evaluation system, it means that you can expect raises and promotions commensurate with your performance. Since results are linked to internal evaluations, employees are more motivated, and as a result, productivity can be expected to increase.
Increased communication within the company
In order to properly conduct personnel evaluations, the employee to be evaluated and the supervisor on the evaluation side must communicate with each other on a daily basis. As a result, internal communication becomes more active and it becomes easier to exchange opinions.
It will lead to increased engagement
Engagement refers to an employee’s sense of loyalty and willingness to contribute. When supervisors give appropriate feedback through personnel evaluations, employees will feel that their achievements are being recognized.
Evaluations from superiors will not only help build trust between the top and bottom management, but will also increase employee motivation and engagement to achieve more.
Methods of the Personnel Evaluation System
Having grasped the reasons why you should adopt a personnel evaluation system, let’s take a look at what methods are available for the personnel evaluation system.
MBO refers to the goal management system. It was originally proposed as a method of organizational management. Since it has clear criteria in the form of goals, it has come to be used in connection with personnel evaluation.
In MBO, the team sets goals and evaluates the degree of achievement of the goals. The key point is that it is easy to make an objective evaluation. In addition, if MBO is used to set goals that suit employees and teams, it can also lead to human resource development.
360-degree evaluation refers to a personnel evaluation in which evaluations are conducted by people in multiple positions who have a relationship with the subject of the evaluation. Usually, personnel evaluations are conducted by superiors, but 360-degree evaluations are characterized by the fact that not only superiors but also colleagues and subordinates of the subject of the evaluation participate in the evaluation.
Since the evaluation is conducted not only from the supervisor’s point of view but also from multiple viewpoints, a highly fair evaluation can be expected.
Competency evaluation is an evaluation based on the behavioral characteristics of employees. Since the evaluation is based on the behavior of highly rated employees, it is easy for employees to be convinced of the contents of the evaluation. It is characterized by the fact that it is not biased toward evaluation of only visible aspects such as results.
How to create a personnel evaluation system that is perfect for your company
Let’s take a look at the steps to create a highly transparent personnel evaluation system.
1) Determine the purpose of the personnel evaluation system
Before developing the personnel evaluation system, it is important to clarify the purpose of developing the system. One possible reason is to increase employee motivation, but this lacks specificity as to why it is necessary to increase motivation.
In order to motivate employees, the purpose should be clarified by considering the effects it will bring. For example, decide how to treat employees so that there is no sense of unfairness among employees in the end or establish a personnel evaluation system for the purpose of human resource development so that employees can improve their skills.
As the objectives differ, so do the details of the system, so it is important to imagine what the company needs to achieve in the end and then think about the specific evaluation.
2) Create evaluation standards
Next, we need to identify the criteria for evaluation. What are the criteria for evaluation? The basic evaluation criteria are evaluation based on performance goals and evaluation based on behavioral goals.
The evaluation based on performance goals is the result of work that is directly related to sales, such as the number of contracts. The evaluation based on behavioral goals is an evaluation that focuses on the process rather than the result. The basic idea is to consider and set multiple items for each. If you want to emphasize human resource development, you can use ability evaluation, and if you want to evaluate cooperativeness and proactiveness, you can use affective evaluation that looks at work attitude.
After deciding on the evaluation items, it may be necessary to decide on the weighting of the evaluation items according to grade, position, department, job title, etc.. The purpose of all this is to prevent a sense of unfairness by unifying the evaluation.
③Think about how to evaluate
How will you evaluate the evaluation items you have set? The evaluation period and reflection period are also to be determined. Specifically, do you want to evaluate them with ranks such as A, B, C, etc., or do you want to evaluate them on a scale of 1 to 5, or do you want to evaluate the percentage of achievement against 100%?
What we need to pay attention to here is how to evaluate the rank, stage, or achievement rate. In some cases, evaluations are divided into “well done,” “average,” “not done at all,” etc. However, this is not very concrete and in the end it is left largely to the judgment of the evaluator.
When creating evaluations, it is important to determine and clarify the specific guideline for the evaluation for each rank or stage, such as “5” for achievement up to “0”.
4) Determine the implementation schedule
Even if the new personnel evaluation system is finalized, it cannot be introduced immediately. Even if a new personnel evaluation system is finalized, it cannot be implemented immediately; it must be approved by management. If the company has a labor union, the union’s approval will also be necessary.
It is also necessary for those who will actually be in charge of the evaluation to be prepared and ready. It is advisable to conduct a simulation before full-scale implementation. In order to prevent the evaluations from becoming too divergent, it is a good idea to consider the results of the simulation as you proceed with the introduction. After the introduction of the system, regular feedback, analysis of the evaluation results, and review as necessary should be conducted.
Points to consider when creating a personnel evaluation system
We have explained how to create a personnel evaluation system, but if the contents are too much on the manager’s side, we cannot expect a great effect even after the system is in place. Some employees may complain that the system is still unclear. Here are some points to keep in mind when creating a personnel evaluation system.
Gather the voices of management and front-line employees
In order to create a fruitful personnel evaluation system, the person in charge of personnel evaluation should listen carefully to the opinions of both employees and management. If you listen to the employees, it will become clear what they want to be evaluated. If you listen to the opinions of the management, you will have a better idea of what they expect from their employees and what they value.
However, it is not a good idea to just adopt the opinions of both sides. What the person in charge needs to do is how to connect the management’s expectations with the employees’ expectations and how to create an evaluation that can activate the human resources. The personnel evaluation system should be developed with particular emphasis on whether the employees are satisfied with it.
Creating clear and easy-to-understand standards
It is not possible to create a highly transparent personnel evaluation system unless it can be shared with employees and they will be satisfied with it. This means that the evaluation items, standards, evaluation weights, evaluation methods, and timing all need to be clearly set.
We want to avoid as much as possible vague expressions, evaluations that do not allow employees to set goals, and evaluations that may not be viewed objectively. Because a clear evaluation standard increases the credibility of the company itself, we should create a more realistic and persuasive one that is understandable from the employees’ point of view, while also incorporating trial implementation and feedback.
Useful tools for internal evaluation systems include the internal social networking Goalous. It’s a tool that allows you to visualize your goals and processes, and it features photo-action sharing of the process of reaching your goals. Because you can easily look back on the process, you can use it to evaluate the behavioral goals of your employees and give them careful feedback.
Because it has a function for setting goals, it can also be used to evaluate the degree of achievement of goals, making it possible to conduct evaluations with evidence. To support objective evaluation, Goalous to support objective evaluation.
Goalous also offers free seminars. We recommend the following seminars.
What is the necessity of goal management for an organization?
The content of this seminar is focused on goal management and is perfect for those who are experiencing challenges with goal management and goal setting. Since goal setting is partly linked to personnel evaluation, even indirectly, I think it will be helpful.
This is a free online seminar that you can easily participate in, so if you are interested, why not attend?
A transparent evaluation system can only be realized if it is objective and realistic. It is important to aim for an evaluation that can be clearly measured. In support of clear evaluation, Goalous‘s goal management can be used for objective personnel evaluation. I’m not sure.