Employee evaluation is a systematic collection and analysis of information about an employee’s performance for further decision making. Evaluating an employee means conducting an assessment of his/her skills, abilities, knowledge, experience, education and other characteristics that are required for the employee to do his/her job. The purpose of such an assessment is to ensure that the employee can efficiently work in the existing environment with minimized risk of failure as well as without conflicts with colleagues and senior management.
Employee evaluation is a process that can be carried out in the following common steps:
- Determine performance expectations an employee should fit with.
- Make a list of measurements to estimate current performance level of the employee.
- Create a schedule for measuring the employee’s performance.
- Record performance measurements.
- Compare the measurements against the expectations.
Employee evaluations can be done in terms of absolute assessment. It means that performance of an employee is measured and then compared with some baseline. There is also another way – by comparing performance appraisal of one employee with performance results of other workers.