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Steps to create a performance evaluation plan from scratch

Cómo realizar una evaluación del desempeño

Performance evaluation, where should it begin?

Performance evaluation is one of the most delicate and important areas in the HR department. It consists of a conversation between two or more people focused on analyzing the objectives achieved, assessing the competencies developed and detecting the needs of each of the team members. The key to successfully carrying out a performance evaluation and knowing where to start is to focus on objectives and establish an action plan. In this article, we explain how to create a performance evaluation from scratch:

1. Project planning

Having the opportunity to take part in performance evaluation reviews from the beginning is a huge advantage for any employee. It presents the opportunity to design a customized appraisal model created by all businesses. The fact that each area designs and participates in the model is a guarantee of success in the implementation of performance evaluation. In this phase, the objectives to be achieved are established and a calendar of actions is created to ensure that the project is carried out in a timely manner.

2. Communication strategy

When a company starts a new project, one of the most important aspects is to communicate the plan to the rest of the employees. It is essential, first of all, to communicate to the managers or individuals in charge of each area the desire of the company to create a performance evaluation system and the importance of their involvement in its progress. Here, it is essential to explain the reasons why the company is initiating the process and the benefits it can bring to the organization.

3. Identification of competencies

Capturing the essence of a brand and translating it into competencies is not an easy task, but it is a fundamental step to take into account when selecting HR and developing them. Therefore, for a good selection and development of talent, it is essential to identify transversal competencies common to the entire organization and longitudinal competencies, specific to certain positions or work areas. For example, a transversal competency could be teamwork. A longitudinal or area-specific competency could be leadership or sales skills.

4. Performance evaluation system

Performance appraisal can be done in several modalities. They are the following:

  • 90-degree evaluation. It is the person in charge of the team who evaluates the individual employee.

  • 180-degree evaluation. The professional is evaluated by his manager, his peers, and, eventually, by his clients.

  • 270-degree evaluation. The individual HR is evaluated by his/her manager, performs a self-evaluation, and is evaluated by his/her peers.

  • 360-degree evaluation. The performance evaluation is carried out by a superior, a peer, a subordinate, and customers. It is a holistic evaluation.

Regardless of the established formulas, the ideal scenario is to create a tailored evaluation where development conversations are reciprocal and both parties, manager, and employee, get feedback on their performance. According to the article by Gallup on the truth of performance reviews, only 14% of employees strongly agree that their performance appraisals inspire them to improve.  That is why training area managers in this task become a key part of the process.

5. Definition of objectives

Defining objectives together will help the employee to become involved in achieving them. In performance, quantitative and qualitative objectives are established, which can be individual or shared by a department. The achievement of these objectives may or may not be linked to a remuneration or bonus system.

6. Sample questions to carry out performance evaluation

The questions to be asked during the appraisal interview will depend on the type of employee to be interviewed. There are, however, a number of questions that can help guide the interview. Below, we will share some of them:

  • How would you like to develop your professional career in the future?
  • What specific goals would you like to achieve?
  • What do you need to achieve your goals?
  • How do you think the organization can help you achieve those goals?
  • What can I do to support you in your development?

7. Action plan after performance evaluation

Once the development needs have been identified, it is necessary to consider how the company will respond to these needs. In this phase, it is essential to meet the expectations of the employee. At this stage, it is advised to create training itineraries, mentoring programs, leadership training and to rely on both external sources and the organization’s own talent to create a plan tailored to the needs of the employee.

8. Continuous feedback

The future of performance evaluation lies in creating development conversations on a regular basis. It is an opportunity to define and redefine objectives. It is a unique opportunity to create an intimate space to grow and bring to the table the expectations of each member of the organization.

9. Benefits of performance evaluation systems

Performance appraisal represents multiple benefits for both the company and the employee. The most relevant aspects are listed below:

  • Personal and professional development
  • Establishment of a career plan
  • Identification of training needs
  • The motivation of the employee
  • Improving communication

10. Digitalization the performance

Digitalizing this process helps both the management team and the employees to centralize information and create an effective monitoring system for all members of the organization. In addition, it allows a quick analysis of the results. The digitization of performance facilitates the identification of the organization’s high potentials through the 9 box grid and the spider-web of company competencies. It also helps to quickly create the company’s training and development plan.

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