How To Use Employee Rating To Improve Productivity

In today’s competitive workplace, employee ratings have become an important tool for measuring employee performance and productivity. But what is the best way to use these ratings? How can they be used to improve workplace productivity? In this blog post, we’ll take a look at how employee ratings work and what you can do to use them effectively.

What Is Employee Rating?

Before getting into our list of tips to effectively use employee rating to improve productivity, let’s first familiarize ourselves with what exactly these ratings are.

Employee ratings are numbers or percentages that are assigned to employees by their managers; these are usually done on an annual or semi-annual basis. Ratings can be based on several factors such as employee performance, employee productivity, and customer satisfaction. They are usually measured either through surveys sent out to customers/clients or completed by a sole evaluator like an HR manager or team supervisor.

At least, that used to be the all-encompassing definition for employee ratings. These ratings have been around since the third century — and have been criticized and hated for just as long. Many studies and surveys have found that no one likes performance ratings and this attitude of fear and dread causes them to be counterproductive for the workplace. Hence why the definition we provided above is already quite outdated. Indeed, many companies and businesses have adopted new employee rating tactics and practices to make them more effective and beneficial for everyone involved.

Why is Employee Rating Important?

Although an often dreaded event at the workplace, employee ratings, when delivered effectively, increase productivity, motivate employees, and improve employee satisfaction.

Employee ratings offer employers and managers a way of measuring how an employee is performing relative to their peers at your company. By comparing these ratings across different departments within your organization, you can determine which areas need improvement, resulting in better decision-making about where resources should be spent for identifying problem areas and developing training programs. Remember though that just because someone has a low employee rating doesn’t necessarily mean they’re not doing good work — it could just mean that they are out of their comfort zone and would excel somewhere else.

Employee ratings also make available a way of rewarding top performers and improving employee satisfaction by increasing transparency within your organization about who is striving for excellence — especially if these ratings are used to determine compensation, bonuses, promotion opportunities, or other rewards for employees at different levels in the workplace hierarchy.

Finally, employee ratings can help improve productivity because they provide a pathway for management to communicate goals and expectations with employees. When everyone has the same understanding of what needs to be achieved, improvement can happen more smoothly across departments instead of having people working at cross-purposes without knowing it. This also means less rework on projects after development is done, which saves time and resources that are needed elsewhere.

employee rating

Tips to Improve Productivity With Employee Rating

Now that you know why employee rating is important, here are some tips to build on this knowledge and use this to improve workplace productivity:

Be Objective

Studies have shown that more than half of the time, performance ratings are affected by the rater’s personal biases and prejudices rather than the actual characteristics or traits of the subject being rated. With this in mind, your number one priority should be to make employee ratings as objective and unbiased as possible. Of course, this is easier said than done, as being completely unbiased is practically impossible.

That being said, there are still ways to minimize the personal biases of those performing employee evaluations. One way we’ve found to be effective is offering specific guidelines that have been peer-reviewed and approved to the evaluators, so they know what kind of information is necessary to make an assessment, as well as what factors don’t matter in determining the final evaluation.

Another approach that helps ensure employee ratings are objective is having multiple evaluators rather than leaving the task to just one person. Evaluators, aside from HR managers and supervisors, can be teammates, co-workers, clients, and even outside sources that have no connection to the employee being rated.

Doing this also means that you are gathering more information and documentation, which paints a much clearer picture of how an individual is actually performing, rather than simply relying on one evaluator’s word alone. Plus, this protects the employee being rated from unfair rating practices, contributing to employee satisfaction.

Make Everything Clear

When setting goals or expectations for employees during employee reviews (or at any other time really), you want to be as specific as possible about what each goal entails so that there is less room for misinterpretation later on down the line. This will prevent lengthy discussions between managers and employees after ratings are delivered when everything is clear right from the beginning.

Aside from making goals clear, make sure that the comments being given out during employee ratings are specific, relevant, and useful to the employee being evaluated. Generic comments such as “you’re doing great!” or “you need improvement” are not helpful and can be misleading depending on how they are phrased. So try to come up with something more constructive than these overused remarks.

Another way of bringing clarity to employee rating time would be having a checklist or rubric for evaluators to reference throughout their rating process — this ensures that everyone knows what information should go into an employee evaluation and nothing important is overlooked in the process.

When everything is made as crystal-clear as possible, from start to finish, there is less room for confusion, which can greatly improve workplace productivity.

Use Multiple Employee Ratings

Not everyone is the same, and employee ratings shouldn’t be either. Different departments have different types of work that need to get done — and just because someone does well in one department does not mean they will do as good of a job if moved to another area. This means that employee rating should always involve comparing employee performance within a team or group, rather than directly against others rated outside their immediate circle.

By using employee ratings from multiple sources like peers, managers, direct reports, or customers/clients, you can help identify which areas an employee needs improvement in, better enabling them to contribute overall throughout your company’s operations.

Use Appropriate Performance Review Phrases

Instead of using the standard 1–5 rating scale that all employees have come to dread and hate, use performance review phrases that are positive, relevant, and provide advice or suggestions for improvement.

For example, instead of simply rating an employee a 3, “fully competent”, or “meets expectations” in terms of timeliness, use phrases like “keeps commitments to get work done” or “places a premium on planning.”

This way, employees will have actionable ratings to inform them about their performance, rather than general comments or vague numbers that do not tell them what it is exactly they should keep doing or start working on.

Streamline the Process

Try to create rating processes that are not only effective but also efficient, so things don’t get bogged down and cause delays. Doing this allows employee ratings to be done as quickly and painlessly as possible, which is great for employee morale and company productivity.

A great way to streamline the rating process is by using employee rating software to store employee information, track employee progress over time, and automate the rating process itself. This means no more data entry or manual emailing back-and-forth after each employee is evaluated — just a few clicks of the mouse will get everything done in one go!

One important thing to keep in mind when using employee rating software is to ensure that you are picking out software that is both automated and customizable. The automation allows for a much faster process, while the customization makes it so the software can fit your company’s specific business practices accordingly.

Conclusion

Employee rating may be dreaded by all, but with the right practices and considerations, it doesn’t have to be a pain in the neck or a waste of time. By doing ratings right from start to finish with adequate employee evaluation phrases and multiple sources of input, you can help improve productivity by allowing each employee to understand exactly what they need to do to contribute to your company’s operations running as smoothly as possible.

Did you know that time tracking is an essential aspect of determining employee performance? Day.io is a great time tracking software that provides you with accurate, easy-to-read data you can use to effectively conduct your next employee performance rating. Get started with us today!