3 Things to
Consider to Design a Fair and Objective Evaluation System
The Drawbacks and the Charms of Performance
curious about how companies should determine employee raises, rewards, and promotions? Is it solely
based on leaders' observations or should a performance review system be implemented? While the
second option may seem fairer, some find performance reviews intimidating and impersonal.
Additionally, this process can discourage immediate or periodic feedback from leaders, as they may
feel that feedback given during the review is sufficient. Moreover, if the wrong measurement tools
are used, it can lead the companies astray with their decision as it fails to depict the employees’
is hardly any effective alternative to replace a performance review. When conducted correctly, a
performance review establishes standardized performance criteria for each employee, creating an
objective and transparent system for promotions, recognition, and evaluations. Without such an
objective and standardized evaluation system, decision-making becomes vulnerable to subjectivity,
resulting in an unfair process. Furthermore, employees may struggle to understand how their
contributions are evaluated or the company's expectations for good or poor performance. Therefore,
despite its drawbacks, the performance review remains crucial.
Factors to Consider for Performance Reviews
question is how to ensure that the performance review actually works and provides valuable insights
for companies to make informed decisions. The primary concern is undoubtedly to make the process and
system as fair and objective as possible. Here are some key considerations before conducting a
- Holistic and relevant evaluation aspects
The evaluation aspects should comprehensively cover employees’ strengths so that the performance
review process can appreciate any kind of contribution the employees made. These aspects should
also be relevant to employees’ work and responsibilities and align with the company’s values and
purposes which have been communicated a few times to the employees so they know exactly the
expected aspects that will be evaluated.
- Direct and unambiguous language
avoid any kind of misinterpretation, every item of the performance evaluation should be
expressed in direct and concrete terms, leaving no room for multiple interpretations. For
example, instead of stating ‘talent is a diligent individual’, it is better to specify ‘talent
always checks their work at least twice before submission’.
- 360-evaluation implementation
mitigate subjectivity, companies can introduce a 360-degree evaluation process, where employees
are not solely appraised by their superiors, but also by the individuals who engage with them on
a deep, day-to-day level.
performance reviews have their drawbacks, their benefits shine through when executed correctly. By
considering the aforementioned factors, companies can make informed and objective decisions that
foster employee growth and drive business success.