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What is an employee performance appraisal?

Every manager, team leader, or business owner must validate the value of an employee to their company at one point or another. An employee performance appraisal does just that; it identifies the value of an employee to the company. Appraisals are generally written, oral, or a combination of the two, reviewing a worker’s performance of their primary responsibilities.

Performance appraisals are generally used under two types of circumstances; when a company is building a case to terminate a worker, or annually to track employees’ progress and growth. At NBS, we believe when they are utilized properly to guide a worker to better productivity, they are an excellent tool for success.

Evaluate then appraise

One misconception concerning employee appraisals is that they can be done purely through observation. Too often employers rely on what they see and hear, or simply on a worker reaching goals or objectives. Consequently, this leads to a wide range of fallacies and lost opportunities. Employees are the most costly asset of any business and inaccurately identifying their value is a grave mistake.

Why use evaluation tests for employee appraisals?

Quantifiable data is a primary building block of accurately identifying an employee’s growth and impact within a company. A key component of that data is a worker’s knowledge level of their job and industry. Without that, it is nearly impossible to make a well-informed decision about a worker’s value.

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Eliminate Skewed Observations

Observations without data are highly skewed, negatively or positively, due to several factors. One significant factor is time; managers are never around 100% of the time and workers are more prone to work efficiently while they are present. However, a well-performing worker in the presence of a manager may not actually have a higher knowledge-level than other workers who maintain their performance all the time. Without an employee evaluation test, a manager will never know.

Historical Data

Consistently testing an employee’s on-the-job knowledge allows companies to compile historical data of their growth within the company by continuously tracking growth on a knowledge and performance basis. Furthermore, with a well-kept database, managers are able to compare the data to their observations—ultimately making a well-informed decision.

Employee Performance Appraisal Objectives

By methodically using employee performance appraisals, organizations can meet a variety of objectives and build a superior workforce.

  • Increase Productivity
    Managers and team leaders can coach workers toward a higher efficiency-level. First, they identify the areas where a worker’s knowledge and performance is lacking. They then itemize key areas where an employee can improve and communicate those areas to the employee. With that approach, managers give an employee the knowledge and direction they need to be more productive and eliminate any excuse for unawareness.
  • Well-informed Decisions
    By using quantitative and qualitative data, team leaders have everything they need to appraise an employee correctly. When making a tough decision is necessary, managers have their experience and observations of the employee, along with actual statistical evidence. By combining and comparing both, they create the best situation for making any tough decision.
  • Knowledge Growth vs. Achievement
    In an appraisal system that utilizes evaluation assessments, employers have a transparent understanding of which workers meet their goals while increasing their skill and knowledge. In the end, this makes cases for promotions and raises easily identifiable.
  • Training & Communication
    A thorough appraisal system also allows managers to identify holes in their training and internal communication. With that, managers can replace past failed approaches with more effective methods for those who need it most.

An equation for Success

By combining quantified data with a qualitative review, employers combine the necessary aspects of identifying an employee’s value. With that information, employers can then resolve or remove any problems that keep employees from reaching their full potential and allow them to be as productive as possible. By combining both systems, employers also have a better opportunity for making well-informed decisions regarding any employee.

NBS Evaluation Tests

If your company uses an employee appraisal system that is lacking quantifiable data, consider NBS assessment and evaluation tests. We provide accurate and effective testing material for any industry, as well as customizable tests. We also design each of our tests to be fair and effective; accurately testing the knowledge and skill level of workers across all industries. If you have any interest or curiosity regarding how you can use assessments and evaluations within your appraisal system, contact Nocti Business Solutions today!