How to do an employee evaluation in your company? See Tips and examples


How to do an employee evaluation


Knowing how to conduct a performance appraisal is extremely important when managing people. It aims to understand how to do an employee evaluation or team evaluation inside an organization during a determined period.

Performance appraisal is an essential tool for entrepreneurs since it provides valuable information to improve processes. Learning how to do a performance appraisal is important because it allows adjustments in your workforce according to the company’s goals.

But do you know how to do an employee evaluation and use this vital indicator to increase your company’s productivity strategically? Follow our today tips to learn more about it!

1) Use the results to develop management strategies

As a tool for strategic people’s management, performance appraisal serves as a diagnostic for success or failure in spreading the company’s culture among employees.

When results are satisfactory, it is essential to develop methods and strategies that contribute to the constant employee development.

2) Give continuous feedback

Because evaluating an employee is an ongoing process and should happen every day, it is important to give regular input regarding results and the achievement of goals set for employees.

What is usually evaluated is the interpersonal relationship with work colleagues, the employees’ attitude, progress at work, commitment, among other issues.

3) Talk about improving performance

If there is a need to improve employee’s performance, one must focus on solving the problem to obtain better results.

In order to do that, avoid hostility and aggressive attitudes. An honest conversation is better to revert an employee’s contradictory attitudes without undermining his or her motivation.

It’s a win-win.

Interviews are an interesting way to build trust with employees. They help you to keep track of improvements, implement new strategies, and take back measures that prove to be inefficient.

It is essential that the manager has the attitude of a leader, conducts this process without authoritarianism, recognizes the positive contributions from employees to the company, and adjusts improvement points politely.

4) Choose the right moment to evaluate

It is necessary to analyze the company’s workforce regularly.

However, this is not a rule. The performance evaluation must occur whenever the entrepreneur finds that an intervention is necessary to promote better performance in an employee or workgroup.

Therefore, it can be done weekly, monthly, or twice a year, according to the employee’s responsibilities and the processes in the company.

5) Understand the benefits of knowing how to do an employee evaluation

Performance evaluation allows managers to have a deeper understanding of their employees, and to know their strengths, as well as their weaknesses.

Periodical meetings bring them together and make it easier to create strategies that promote improvements in manager’s and employee’s actions.

Therefore, an approach that is exclusively bureaucratic and relies on form-filling becomes inefficient.

Learning how to conduct a performance appraisal that brings good results will benefit people’s management, employees’ performance, and, by consequence, will increase the company’s outcomes.

For the manager, knowing how to do an employee evaluation improves the relationship with workers, and creates an opportunity to develop team communication.

For the employee, performance appraisal represents a real possibility to improve professionally, once it promotes self-knowledge and reflection about their practices and attitudes.

For the company, knowing how to do an employee evaluation can generate data that orientate reallocations, promotions, and dismissals.

Thus, organizational performance benefits directly from data collected through performance appraisal.

A central aspect of a manager’s job is to nurture his employee’s development. Therefore, if he knows how to do a performance appraisal, he can work with establishing goals and development plans for these employees.

Thereby, even if there is a need for objective data collection, dialogue must be present in the whole process of a performance appraisal, regardless of the model adopted.

6) How to do a performance appraisal: methods

Assessment by competence

This is the most common model nowadays. It aims to measure abilities, attitudes, and knowledge concerning a determined job or task.

Assessment by Goals

This kind of performance appraisal analyzes the employee more pragmatically.

Employees and managers establish their goals and later, at the end of the process, performance appraisal measures if and how the goals were accomplished.

Assessment by critical incidents

In this evaluation, managers keep a history track of events involving the employee, such as misbehavior, or good outcomes in a working situation.

It is a register of happenings considered critical for one year.

Cost related Assessment

This model aims to estimate the cost/benefit relation of an employee, defining in values his production in the face of expenses involved in keeping him in the company.

Assessment by forced distribution

By this assessment criteria, an employee receives evaluations based on concepts such as “excellent”, “satisfactory”, “average”, “unsatisfactory”, and “very unsatisfactory.”

Then, employees are categorized according to these concepts and can be promoted, maintained, or dismissed.

By knowing different models of how to do an employee evaluation, you will be able to identify what serves better to your company’s needs. Therefore, you may give better feedback to your employees, and assure productivity to everyone in the team.

7) Understand what performance appraisal takes into consideration

Now that you understand the main models for performance appraisal, it is essential to understand the aspects that should be taken into consideration before putting it into practice.

One can only understand an employee’s weaknesses and strengths and draw a working strategy by analyzing the following criteria:


The HR department and the team must be paying attention to the reasons that motivate an employee and engage him in projects.

That way, it is possible to find a different way out for every type of employee, depending on what motivates him or her in the workplace.


It is crucial to measure an employee’s ability to work with a team. After all, being very good at the job alone is not enough to work for an organization.

For this reason, evaluate soft skills: how does this person deal with conflicts? Does he or she communicate well with colleagues? What about delegating and prioritizing tasks? Is he or she a leader or a follower?


Analyzing which results an employee is bringing to the company is another major issue.

Therefore, to measure performance, keep track of deadlines, collaboration inside and outside the department, as well as goals achieved.


At last, you should evaluate potential according to the employee’s abilities and goals. What can be done to explore his/her potential and bring good results?

It is essential to understand that employee evaluation also takes into consideration qualitative aspects that numbers cannot measure.

Potential is one of them. It is strongly related to an employee’s motivation and engagement with the company, and also point to undeveloped abilities.

And you, how have you been doing performance appraisals in your company? To keep track of your evaluations regularly, Siteware has developed STRATWs One, a Corporate Performance Management software that has a specific module on Individual Performance Management.

Revolutionize your company’s management with STRATWs One

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