How to analyze performance appraisal results

Performance appraisal is characterized by questionnaires, interviews, peer evaluations, and other types of assessment. However, you can't analyze employee performance effectively if you fail to put the gathered HR data into good use.

It is a waste of time when employees do their best to participate, but HR fails to uncover growth insights from the performance appraisal data. Every appraisal question answered holds valuable information that helps CEOs align their team's professional growth and before planning a performance review, it's important to plan how you will make sense of performance appraisal data.

We'll show you how to build a data-driven employee evaluation report that guides, rewards, and empowers employees in ways they deserve and share some techniques for analyzing performance appraisal results.

Analyzing performance appraisal data from 360 review

360 review is a comprehensive appraisal method that utilizes several different sources to determine the strength and weaknesses of an employee. When used effectively, it provides a unique and sometimes contrasting perspective on how an employee performs. In modern times, performance reviews are often conducted remotely with the aid of cloud-based HR management solutions.

Moving performance appraisal to the cloud means you have ready access to the evaluation data of the entire team. By tapping into HR analytics, you can identify differing assessment results amongst team members. For example, some individuals might have graded themselves respectably in self-assessment but received average scores from their peers. But others might receive glowing results in both self and peer evaluations.

The disparity in the 360 review results is not a cause of concern. Instead, it allows space for discussions and understanding of what might trigger differing perceptions amongst peers, managers, and subordinates. This is precisely why 360 reviews have become a popular holistic appraisal method. The results pave the way for follow-up interactions that help shed light on specific areas that have escaped the employee's attention.

These are the different scenarios that might result from the performance appraisal process. Check tips for interpreting performance appraisal results below.

Underestimated self-evaluation

You have employees that tick all the right checkboxes in their job but fail to appreciate the brilliance of their performance. This is a classic example of employees suffering from low self-esteem or morale, and it's in your best interest to help them acknowledge their strengths and reap the rewards of their efforts.

To do that, you'll need to address the root cause of such situations. First, their employees may not be getting adequate feedback from their managers. Employees require more frequent feedback to understand their strengths and weaknesses. In the US, one-third of companies have opted for regular informal manager-employee interaction in favor of the traditional appraisal process.

The second reason employees are discrediting their worth is that they could be undergoing difficult times. It is not unusual and perfectly humane for personal issues to affect professional performance. Or they are facing work complications and don't have the proper channel to voice their grievances. Therefore, it's essential to design a stress-free and approachable appraisal process that encourages employees to share their thoughts without fear. 

Regardless of the reasons, going through the performance management data will help you identify specific areas that receive varying feedback. This allows you to focus on specific indicators and engage your employees in honest conversations. Do take the opportunity to ask what causes them to hold such low regard for themselves and help them restore their confidence. 

Inflated self-assessment

Some employees think highly of themselves, but their manager doesn't share the same sentiment. Employees submitted an impressive self-evaluation form during the appraisal, highlighting their skills, achievement, and track records. However, their managers have a totally different perception and believe the employees are nowhere near their best.

Overconfidence is not necessarily bad, but it's crucial to figure out why the manager has contrasting views. Based on the employee performance analytics, it is easy for you to pinpoint KPIs that garnered conflicting opinions. Then, discuss with the manager and understand what unfolds during the 1-to-1 sessions with the employees. 

If there is a reality gap between the employees' self-view and skills, help them elevate their capability to match their self-esteem. Otherwise, address any weaknesses in how the interviews are structured with the aid of the HR team. This ensures future valuations produce more precise results. 

Absolute positive results

When both employees and managers give positive reviews in appraisals, you'll want to ensure that the former is appropriately rewarded for their efforts. Be it a salary increment or promotion, you need to assure your star employees that there's more room for progression in the company. 

Negative results

It can be alarming when employees get unimpressive scores in 360 reviews. However, it could also be a turning point for the better when you take the appropriate steps. Hold private discussions with the employee and seek their thoughts on the appraisal results. Identify the areas that suffered from the lowest score and focus on improving them for the next 6 months. 

Then, find ways that are agreeable to both parties to reverse the discouraging results. For example, create a personal development plan or specific upskilling course to motivate and elevate employees' performance. It's essential to integrate these plans with deadlines and SMART/OKR goals. Brief the employees of the renewed expectations during subsequent 1-to-1 sessions.

How radar chart helps in analyzing employee performance 

During the appraisal, employees are scored over multiple competencies. A radar chart is a visual tool that consolidates different competencies in a unified observable perspective. It is a common appraisal evaluation tool to identify commonalities and outliers in various performance indicators. 

Here’s how to use a radar chart to derive meaningful insights from scored attributes. 

More data-driven ideas for your performance reports

 You can use the HR Analytics in Peoplelogic to:

• Compare differences in grades between managers, peers, and self-evaluation.
• Identify skills at the organizational, team, and manager levels. 
• Compare performance evaluation data by demographic criteria, such as tenure, seniority, gender, and location. 
• Highlight extremes in competencies against average benchmarks
• Create personalized career development plans for employees. 
• Shortlist high-performers and accord the appropriate rewards. 
• Allocate space for conversations and remedial actions for low performers.

Conclusion

Using performance appraisal analytics helps improve morale, overcome weaknesses and reward capable employees. With Peoplelogic, it's easy to compare appraisal results from different perspectives or get aggregated scores amongst team members. It helps employees to inspect their performance objectively and contribute to organizational growth.

Try performance analytics in Peoplelogic for free now.