What is Performance Evaluation?

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Performance evaluation (also known as performance reviews or performance appraisals) refers to the process of systematically evaluating employees’ performance.

They’re especially useful for understanding each employee’s abilities and limitations in order to explore future opportunities.

They’re a powerful tool for refining and improving said the performance by providing the employee with guidance and action plans.

How does performance evaluation work?

The performance evaluation process is the starting point for employees and managers to create a development plan.

Exploring the employee’s strengths and weaknesses, managers are able to suggest potential training opportunities as well as situations in which it’s possible to increase the employee’s responsibility.

The performance process normally follows the steps below:

  • Employee evaluation: The employee evaluates himself and his performance according to pre-established criteria;
  • Manager evaluation: The manager evaluates the employee and his performance according to the aforementioned criteria;
  • Feedback meeting: Manager and employee meet face to face to discuss the results of the evaluations, compare and contrast the gathered information;
  • Action plan: Both parties work together towards developing an action plan to keep/improve the performance results;
  • Follow up: Employee and manager schedule subsequent meetings to keep track of the goals established on the action plan.

Even though this is a moment of direct communication between employee and manager, ideally it’s not the only time they sit down to talk about it.

Investing in continued communication and frequent conversations are extremely helpful to keep everyone on the same page. Also, scenarios in which managers and employees have a strong relationship with frequent communication help make annual reviews less stressful (for both sides).

Relevant note: 3 Ways to Improve your Performance Evaluation Process

Why is performance evaluation done?

As we mentioned above this is the most commonly used way to keep track of an employee’s performance. They’re very useful for identifying each employee’s strengths and weaknesses and placing the right people in the right positions.

They’re also frequently used for assessing each employee’s potential for growing and developing within the company as well as awarding bonuses, pay raises, etc.

As pointed out in the steps, this process is also about providing employees with feedback on their performance.

Manage your Employees’ Performance Evaluation in Pipefy

Pipefy offers a free performance evaluation template that helps managers follow up on their team’s performance. Evaluating your employees is extremely necessary within companies – without a strucutured process, employees don’t know what their strengths are and behaviors they need to work on.

This template allows you to set feedback meetings with your employees as well as collect and give feedback, helping them improve their performance as well as overall behavior.

Written by
Isabelle Wuilleumier Salemme
Head of Customer Support @Pipefy. She uses her extensive Pipefy knowledge to help users make the best of Pipefy via support and writing informative content pieces. Besides being in charge of support, she's an avid reader, a coffee lover, and a professional photographer.
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