How to Assess the Efficiency of the Company’s Employees

First and foremost, the analysis of the efficiency of most business processes in the company depends on the professional and personal qualities of employees. Currently, Ukraine is experiencing the active implementation of a new approach to assessing employee productivity in companies of various levels and industries.

So, how can an employee be assessed? Let’s consider what this method includes and the advantages it offers to the employer.

Evaluation of Employee Productivity and Qualifications: Why It Is Necessary

Employee evaluation is a particular system of indicators that allows you to accurately analyze the quality and efficiency of their work and their level of professionalism, competence, and knowledge. A set of characteristics is used to evaluate the skills, responsibilities, and business qualities of employees. The criteria help to objectively determine how successfully each employee performs his or her tasks. Modern methods also allow you to assess the overall effectiveness of the entire team.

The analysis of employee competence and productivity is conducted when certain personnel problems arise in an organization, such as:

1. Constant employee turnover.
2. Decreasing employee productivity.
3. Constant complaints about working conditions.
4. Employee management without adequate analysis and statistics.
5. Reform of the personnel structure and introduction of new management methods.
6. The change in leadership of the organization and the review of the rules and objectives.

In some cases, some of these problems can be solved by outsourcing agencies that provide personnel for rent. However, strategic solutions to improve efficiency cannot be developed without a comprehensive assessment of employees by the company’s internal HR department or, if necessary, by independent experts.

How to Evaluate Employee Performance: Basic Methods

Various methods can be used to evaluate employee performance:

1. Comprehensive testing: qualification, psychological, and physiological.
2. The 360-Degree Feedback Method: involves a comprehensive analysis of the employee. The employee receives evaluations from his or her immediate supervisor, colleagues, and (if necessary) clients, providing a more complete understanding of his or her performance and skills.
3. Business Simulation Method: enables the determination of the current state of the team, including the effectiveness of employee interaction in solving complex tasks. Additionally, this method allows for the assessment of each team member’s contribution to task completion.
4. Competency Model Analysis Method: based on the evaluation of an employee’s skills, knowledge, and abilities, as well as their business and intellectual qualities. It helps identify strengths and weaknesses in the specialist’s work. It also aids in developing a plan for improving skills and competencies.

Through the evaluation process, the need to hire new employees for specific positions may become apparent. SUN ONE company can assist in finding qualified personnel and provide temporary specialists for hire.

Primary Factors for Assessing Employee Efficiency

The criteria for analyzing the effectiveness of employees’ work are determined by the company itself, based on the specific needs and goals of the procedure. The main ones include:

• Hard skills;
• Soft skills;
• KPI (Key Performance Indicators);
• Psychological well-being;
• Qualification skills;
• Learning and development abilities.

As a result, the company’s management or a trusted individual analyzes the acquired data and reaches specific conclusions that will assist in proper personnel rotation, individual specialist training, and the development of the company’s strategy.