How to choose a performance appraisal solution

Increasingly, human resources departments are utilizing powerful metrics to determine the productivity of companies’ workforces. A relatively new concept, the application of metrics to an employee base is surprisingly effective not only in developing a clear picture of current performance levels, but also enhancing performance in the workplace. That’s because once they are held directly accountable for their output levels, employees are more likely to produce results more effectively.

But how, exactly, are metrics to be used? Interestingly, quantifying the results of employees’ efforts comes from a system that everybody is quite familiar with – academic grade. In addition to grades, the scorecard has come into prominence in the human resources sector only after it was proven to be effective in providing accurate numbers for company performance.

Now, in the workplace, metrics evaluation tools that have typically assigned to the accounting and overall management endeavors have had great success in their recent application to human resources departments.

By utilizing both rating and ranking systems, a human resources team can determine the metrics of employee performance through simple arithmetic. The tricky part of the process begins when deciding what, exactly to begin measuring.

That’s why the scorecard system includes a wide variety of features that extend far beyond the over-simplified input-output model. Indeed, when considering that human resources deals with the business of people, the equation naturally becomes a bit more complex.

So while one of the key measurements in the metrics evaluation process includes productivity as a function of training – for example, how much return on investment one can get from an employee after 6 months of training – there are other factors to consider. One of these happens to involve the pace at which an employee acquires the knowledge and skills necessary for the workplace. If an employee with no prior industry experience can quickly excel to the level of a five-year veteran, then such a metric should not be overlooked.

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