If employees hold the key to business performance, then how you’re evaluating the performance of your employees?

Abhilash Aruva
Sep 5, 2018 · 3 min read

In most of the organizations, there is no correlation between employee’s yearly performance ratings and the results that the company is actually experiencing. The main reason is performance reviews, as they are used in most companies, are an inadequate measure of true value, is that they seem to create an alternate reality that is divorced from companies’ actual results.

Have you ever wondered when you have rating stats from HR and managers that many hardworking employees had delivered the results merited high-performance ratings, and therefore receive pay raises but company’s financial outlook and results fallen? Shouldn’t that employees contributions add up to the company results?

I think there is this disconnect in most of the organizations. Most unsuccessful companies, employees are more likely to be highly rated. It might be due to the fact that performance ratings are compared within the organization, when in fact companies competition is across the globe. It won’t be the true measure of value if you’re not being rated against the highest level of professionalism in your field.

Personalizing is the main factor for grade inflation. Managers tend to be afraid of emotion when they give a poor rating, so they sugar coat the message and inflate the rating. Another factor is rewarding on potential, the measurement should mostly depend on the outcome than activity.

So how do we solve and get a perfect correlation ( accurate and true) from performance rating and the organizational results? Performance management systems are true saviors giving honest and accurate values to the managers in the organization hierarchy. A performance management systems helps a managers to create goals and provide guidance to improve each employee’s effectiveness within the organization.

The Managers are able to create short term and long term goals on performance management system and actively monitor to know early if anyone missing the target or doesn’t have the skill to work in his position. A good performance management application can give detail analytical overview of activity and outcome of each individual employee and as a team. They dramatically improve employee performance and productivity.

Metric’s are key ingredients for evaluation and improving your employees. Choose the metric wisely, It should indicate that you are successfully pursuing your vision and strategy. Select metric on factors like an accountable person, frequency of measure, complexity, benchmark and make sure it reflects the actual company growth.

As a developer of one such application, I know how important these metrics are and how these are used to mine data. We had a tough job of giving these metrics a flexibility and complexity.

If you’re looking for a performance management application to integrate with your Salesforce instance, I would suggest having a look at Abaav.

Sample Dashboard Image for Abaav

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