What is business valuation?
The “father of the assembly line” Henry Ford thought about this. More or less reliable methods for determining the qualities of workers were created only towards the end of the last century. Although the concepts of job descriptions and requirements for employees have already been established and used.
Approached formally, business personnel assessment is a purposeful procedure for describing professionally important qualities, competencies, as well as further comparing them with job requirements. Depending on the position, the procedure may be dominated by the diagnosis of soft-skills (skills and knowledge that are important for a wide variety of activities, but not directly related to the work process), or hard-skills (special knowledge, abilities).
Group-wide trends can also be studied - employee engagement, satisfaction, team relationships.
Business evaluation can be approached as a systematic process for determining performance indicators. In this case, it makes sense to talk about at least its regular repetition.
A one-time study of business qualities gives an idea of how well the employee corresponds to his position, whether there is a need for additional training or transfer to another position.
In contrast to one-time, regular, or diagnostics of the qualities of employees as a process makes it possible to study changes: whether they have grown professionally, personally, or have become too relaxed.
When considering personnel purely based on indicators, there is a big risk of focusing on formal numbers, and ultimately “not seeing the forest for the trees”—abstracting from the employee. To avoid such a risk, the study is supplemented with developmental activities: drawing up an individual development plan for a specialist, discussing a career strategy.
Of course, the choice of method for analyzing business characteristics depends on the purposes of their determination; it is important to approach it individually.
Methods for carrying out additional training
All methods of conducting business assessment are divided into general and special.
Are common
- Employee assessment centers (criteria-based assessment is used for personnel changes).
- Testing for professional aptitude (the characteristics of an employee’s thinking, ability to assimilate and remember information are analyzed by conducting tests or questionnaires).
- Personality analysis (the character traits of the employee are assessed).
Special
Considering such methods, we can distinguish between group and individual ones. Group methods of DL include passing qualifications according to a certain criterion, pairwise analysis, determining the CTD, while individual methods include free description and questioning (possible answer options can be included in the questionnaire to make it easier to process the results). The techniques used in business valuation are discussed below.
Goals and objectives
Experienced HR people advise evaluating employees when hiring. Then, at least once a year, study the business qualities of all staff. From the organization’s perspective, it is optimal to distinguish 4 groups of goals:
- Informational. The procedure helps management learn more about the activities of the enterprise. The “weak link” that requires more attention becomes clearer.
- Motivational. They help to identify the best ways to influence, involve, and improve productivity.
- Administrative. They help resolve personnel issues - send employees for additional training, promote or demote them. Moreover, decisions are made on the basis of objective data.
- General improvement in the management of a company, or branch, division.
And for this we need to solve the following problems:
- creating feedback between management and ordinary employees;
- analysis of business potential - working qualities, character traits;
- determination of training costs - with the development of appropriate programs in the organization or by concluding agreements with training centers;
- increasing labor productivity;
- creating and maintaining a comfortable emotional environment in the team.
Thus, thanks to timely analysis of employees, the company creates an atmosphere of transparency of processes for the team, fairness of monetary remuneration, and non-material incentives. This is the same case when “for deeds there is a reward.”
Let’s add a few words about the “weak link” of the organization. Of course, there are cases when an employee does not correspond to the position he holds in terms of skills, knowledge, and character traits. If you follow the logic, then such people should be fired. Moreover, the higher the position, the more important are the so-called “soft skills”, those very personality traits that help you interact comfortably with other people.
However, often in medium and small businesses one person is responsible for a number of related processes. Due to the heavy load, it cannot cope equally well with diverse tasks. Of course, what is needed is not drastic measures, but assistance to an overworked employee.
Below we will talk about how a business can study its employees.
ONLINE ENTERPRISE ANALYSIS
Business assessment of the activities of Center LLC employees is aimed at solving the following tasks:
- — determining the effectiveness and quality of employees’ performance of job duties and achievement of set goals;
- — determination of the need and main directions for developing the potential of workers and professional skills;
- — stimulating employees to increase labor efficiency;
- — providing employees with feedback.
Assessment of staff business qualities
The stages of an employee’s work involve the use of certain business assessment methods at Center LLC are presented in Fig. 10.
Figure 10 - Application of business assessment methods at the main stages of the work of an employee of Center LLC
The first stage is the selection of candidates for the vacant position. Here the compliance of the candidate’s personal and professional qualities with the requirements of the position and the organizational culture of Center LLC is established. It is predicted and planned whether a potential employee will join the team and whether he will be able to work in this team.
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The following methods are used:
- — psychological or subject area tests;
- — a structured interview, which is conducted separately with a line manager or HR manager. The line manager is often more familiar with all the processes in the organization, while the HR manager can much more effectively determine the suitability of a given candidate for the organizational culture;
- — an individual in-depth interview is used when it comes to hiring a senior manager.
The second stage is the end of the probationary period. The probationary period at Center LLC lasts 3 months. When starting work, a new employee must be assigned an assignment for this probationary period. For this period, his tasks may be spelled out differently than in the current assessment forms. Objectives may include acquiring knowledge about the organization's products or services. For example, for a sales manager who has sales skills in another industry, the main task for the probationary period is to study the specific product with which he will need to work. A newcomer may be entrusted with a small project, but he will carry it out under the supervision of a mentor or curator. The purpose of the assessment at this stage is to check the candidate’s suitability for the position. The following methods are used:
- — formal or informal tests of knowledge of a subject or service;
- - assessment interview.
The third stage is the ongoing performance assessment. The ongoing staff evaluation cycle coincides with the financial year. For newly hired employees, the countdown of the period begins after completion of the probationary period; after the probationary period, current tasks are assigned to him for the remaining months. Based on the results of the assessment, decisions are also made on salary revisions, bonuses and a career development plan for employees is drawn up.
Methods of business assessment of personnel
The following methods are used:
- — certification;
- — performance management;
- — 360 degree circular assessment;
- — method of management by goals.
The fourth stage is transfer to another structural unit or promotion. At this stage, the management of Center LLC is faced with the task of determining the employee’s suitability for the new position, identifying the need for his personal development and professional training.
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The following methods are used:
- — 360-degree assessment (personal development);
- - assessment interview - can be carried out as part of a regular, extraordinary assessment.
The fifth stage is making a decision on employee training. Here it is necessary to identify the staff’s need for professional, personal training, and note the current knowledge of employees. In any case, training must be correlated with the strategic goals of Center LLC. The following methods are used:
- — tests as an auxiliary element for measuring knowledge. To determine the learning outcomes, they can be carried out both before and after the training;
- — interviews as part of the ongoing assessment;
- — a 360-degree assessment, namely the identification of personal competencies.
The sixth stage is the formation of a personnel reserve. Determining the potential of employees with an emphasis on personal competencies, in particular their leadership qualities and ability to learn, is the main thing when forming a personnel reserve. The following methods are used: primary selection of candidates for inclusion in the personnel reserve (occurs during the current assessment); a special campaign during which an assessment is carried out using the 360 degree method.
The seventh stage is making a decision to dismiss the employee. If the management of Center LLC wants to dismiss an employee, then it must provide formal evidence of his inadequacy for the position held, that is, formalized certification results. The general scheme for personnel assessment at Center LLC is presented in table. 8.
Table 8 — General scheme for personnel assessment of Center LLC
Stage name | Methods | Dates | Scientific results of the stage |
1. Determination of the main goal and accompanying tasks of personnel assessment | Analysis of the current situation at the enterprise, collection of information about employees using questionnaires | 7 days | Formation of complete information about the company’s employees for the purpose of assessment |
2. Dissemination of information about the upcoming assessment so that every employee knows about the dates of the assessment, its goals, feasibility, benefits, prospects associated with the assessment process | Information through the media (for large industrial enterprises), through intermediaries - heads of departments | 30 days | Awareness and preparedness of employees for the upcoming assessment |
3. Implementation of personnel performance assessment, which includes: a) Selection of criteria for each employee. b) Assessing the reasons for failure to fulfill their duties: ineffectiveness of employees or the influence of external factors, such as the state of the labor market, inflation, unemployment, etc. c) Drawing up an action plan to improve the work of each employee, assigning procedures that will help employees rise to a new level of development. d) Comprehensive annual assessment | a) Evaluation method using selected criteria. b) Analysis of external factors. c) Drawing up individual plans. d) Certification, assessment using a set of criteria | a) 3 days b) up to 7 days c) 1-2 weeks d) 1 week | Based on the results of the assessment, using the criteria, an action plan for the staff is drawn up, existing shortcomings in the work and achievements noted during the assessment are taken into account. The final point is a comprehensive assessment of all personnel of the enterprise |
4. Discussion of the results obtained. Making decisions on bonuses, promotions, reprimands, dismissals | Meeting, exchanging views and documenting the assessment results | One or two days | The result will be an increase in the number of qualified personnel and a decrease in employees who have not successfully passed the certification procedure |
The most frequently used method of business assessment of personnel at LLC Center is the “360 degrees” method.
Business assessment of the organization's personnel
For a deeper, more detailed assessment of professional knowledge (product knowledge, knowledge of internal regulations and documents and legislation) before conducting a 360-degree assessment, employees answer specially designed questionnaires. The tests are compiled on the basis of data obtained from the analysis and description of positions, analysis of legislative acts and internal local regulations regulating the activities of employees using the brainstorming method of an expert commission.
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For example, a test task for the position of “sales consultant” (“senior salesperson”) consists of 7 sections (knowledge of sales technology, knowledge of the product, knowledge of the procedure for selecting a computer configuration, etc.).
The rules for assigning points based on exam results are presented in table. 9.
Table 9 — Rating scale for the test of professional knowledge and skills
% of task completed | Grade |
more than 95% | 4 - has full knowledge and skills necessary for work |
more than 80% | 3 - has the knowledge and skills necessary for work, but additional training is required |
more than 60% | 2 - possesses the knowledge and skills necessary for work, not enough, training is necessary |
up to 60% | 1 - poor knowledge and skills necessary for work, it is necessary to find out the reason and build a training program |
To conduct an assessment of LLC employees, it is necessary to develop forms for all assessment participants:
- — the manager of the person being assessed;
- - Colleagues;
- - subordinates;
- — clients;
- - the employee himself.
Current business assessment of personnel
The developed assessment questionnaires are presented using the example of the position “deputy director”.
1. Questionnaire for the manager and employee, the form is given in table. 10.
Table 10 — Evaluation questionnaire for the deputy director of Center LLC
Criteria | Evaluation of the manager (employee) | |||
Professional competence | ||||
Knowledge of the range of services provided: | 1 | 2 | 3 | 4 |
— Knowledge of medical indications for services | 1 | 2 | 3 | 4 |
— Knowledge of the list of services provided | 1 | 2 | 3 | 4 |
Knowledge in related areas: | 1 | 2 | 3 | 4 |
— social psychology | 1 | 2 | 3 | 4 |
— fundamentals of ethics and social psychology | 1 | 2 | 3 | 4 |
Professionally important qualities | 1 | 2 | 3 | 4 |
Abilities, skills | 1 | 2 | 3 | 4 |
Organizational skills: | 1 | 2 | 3 | 4 |
- practicality (practical acumen, ability to apply knowledge in various situations, experience in life practice) | 1 | 2 | 3 | 4 |
-personal organization (the ability to plan one’s activities, subordinate one’s behavior to the necessary regime - rational use, filling time, being collected and consistent) | 1 | 2 | 3 | 4 |
Communication skills: | 1 | 2 | 3 | 4 |
— style of communication within the team (attitude towards colleagues and a constructive approach to relationships: correctness, openness, sociability in communication with colleagues, willingness to help) | 1 | 2 | 3 | 4 |
- ability to work in a team (ability to work together with colleagues in the interests of the organization) | 1 | 2 | 3 | 4 |
Personal qualities and loyalty to the organization: | 1 | 2 | 3 | 4 |
— adaptability (when the situation changes, quickly adapts behavior to new requirements and remains effective) | 1 | 2 | 3 | 4 |
— loyalty to colleagues (positive attitude towards colleagues, does not allow himself unconstructive criticism) | 1 | 2 | 3 | 4 |
Ability to develop: | ||||
Initiative, creative approach (overcoming obsolete, obsolete, putting forward new goals, entrepreneurship) | 1 | 2 | 3 | 4 |
Learning ability/attitude to new things (ability to accept and apply new tasks, knowledge, conditions, active assimilation of new knowledge | 1 | 2 | 3 | 4 |
2. The questionnaire for colleagues is similar to the questionnaire for the deputy director, with the exception of the blocks “Quality of work”, “Appearance and workplace”, “Discipline”, “Ability to develop”. They are not included in the questionnaire.
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3. A questionnaire for clients is developed that is uniform for all positions being assessed (Table 11).
Personnel business assessment management
Thus, the personnel assessment system of Center LLC allows us to determine the initial level of knowledge and skills of employees. It also helps participants understand what they have learned and analyze the applicability of this knowledge in the company.
Table 11 — Questionnaire for clients of Center LLC
1. How often do you visit us? | First time Regular customer Random visit | □ □ □ | ||
2. Assess the service culture of the sales floor employees | Unsatisfactory | Satisfactorily | Fine | Great |
□ | □ | □ | □ | |
3. Assess the service culture of warehouse employees | Unsatisfactory | Satisfactorily | Fine | Great |
□ | □ | □ | □ | |
4. Evaluate the quality and speed of service of the sales staff | Unsatisfactory | Satisfactorily | Fine | Great |
□ | □ | □ | □ | |
5. Evaluate the quality and speed of service from warehouse employees | Unsatisfactory | Satisfactorily | Fine | Great |
□ | □ | □ | □ | |
6. Have you come to see a specific employee? | No | □ | ||
Yes | _____________________________ indicate your Last Name and First Name | |||
7. Why did you choose this employee? | Provides professional advice on product selection | □ | ||
Polite and friendly service | □ | |||
High-quality service provision | □ | |||
8. Cleanliness and order in the sales area and delivery area from the warehouse | Unsatisfactory | Satisfactorily | Fine | Great |
□ | □ | □ | □ | |
□ | □ | □ | □ | |
9. General impression of visiting the store | ________________________________________________________________________________________________________________________ |
Personnel assessment also allows you to solve the following management problems:
- — determining the degree of suitability for the position held;
- — improving the use of personnel, identifying the employee’s contribution to labor results;
- — promotion of employees and identification of the need for advanced training, improvement of the structure of the management apparatus;
- — improvement of management (improving style and methods, increasing responsibility and strengthening the relationship between managers and subordinates).
But at the same time, the study of business assessment in LLC "Center" showed that the assessment of personnel in the company is carried out quite superficially and formally, due to which the performance characteristics - the main result of the assessment - do not give an accurate, deep and comprehensive picture of the business and personal qualities of the company's personnel . Recommendations developed on the basis of the results of a business assessment of personnel often turn out to be unclear, unspecific, lacking in content, and, therefore, useless.
Conducting a business assessment of personnel
The reasons for the unfavorable state of affairs in the implementation of the personnel assessment system at Center LLC are as follows:
- — lack of theoretical, methodological, organizational and socio-psychological knowledge underlying business assessment;
- — lack or insufficiency of skills necessary for proper assessment of personnel;
- — insufficient stimulation and regulation of personnel assessment;
- — the absence of a clear system of criteria and a proven procedure for personnel assessment.
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Thus, personnel assessment is one of the most important functions of personnel management in Center LLC, through which the company’s management achieves a number of tasks (selecting the right employees for vacant positions, conducting competent personnel rotation within the company, stimulating employees, receiving feedback and much more) . At the same time, the managers of Center LLC in the process of personnel assessment are faced with a number of serious problems, one of which is the selection of the most suitable assessment criteria for the organization, which have not been finally selected and systematized in the company.
Therefore, in order to eliminate the errors identified in Center LLC and encountered in the process of conducting assessment activities, it should be recommended that the company’s management be based on the principles of objectivity in relation to all employees without exception, openness of assessment procedures for the candidate being assessed, anonymity of the assessment for other employees, and reliability of the information base , professionalism in selecting experts and regularity of assessment.
Methods
There are qualitative and quantitative methods of personnel assessment. Quantitative ones include:
- Rank method. The work group studies a group of workers in similar positions and then assigns a rating to each.
- Graphic profile system. First, a list of employee qualities is formed. Each of them is then assigned a point value. It is entered into the schedule. Both methods suffer from one serious drawback - they strongly depend on the subjective opinion of the evaluator.
- Testing. A standardized procedure for analyzing professionally important qualities, abilities or knowledge, free from subjectivity, is assumed. offers comprehensive testing that examines the intelligence, motivation and personality traits of the person being assessed. Thus, the organization receives a complete description of the employee at a minimum cost.
Another advantage of testing is the ability to study an employee remotely. This saves time for HR, the employee and the company.
The main feature of qualitative methods is their descriptiveness. They don't say anything in numbers. Their second feature is that they depend on the subjective opinion of the expert. These include career interview, paired assessment method and others.
Of the combined methods, the method of creating an assessment center is most often used. But it is expensive and is used mainly for analysis by expensive specialists. It involves the simultaneous use of business games and simulation of situations, accompanied by a live analysis of the quality of their implementation/behavior by a group of expert evaluators.
For key specialists, whose work is most critical for the company, a comprehensive study is organized, combining qualitative methods with quantitative ones. To do this, it combines testing (as an objective method) with expert opinion within the framework of: https://expert.ht-lab.ru/.
In light of the consideration of methods, an important question arises - who should evaluate whom?
Personnel assessment methods
When checking personnel, different methods are used. They can be qualitative or quantitative, as well as combined.
Quantitative methods are the most objective: they record the results in numbers. Quantitative methods include:
- point-based – the employee receives a certain number of points for each of his positive qualities;
- rank - the immediate supervisor draws up a rating, distributing subordinates in it by place;
- summary score - employees are assessed according to parameters, each expert assigns a score for each parameter, then these indicators are summed up to derive an overall rating.
Qualitative methods - descriptive:
- matrix – a person’s characteristics are compared with the reference ones for this position;
- a system of random or selective characteristics - the manager highlights some achievements or, conversely, mistakes of the employee and compares them, on the basis of which he draws a conclusion;
- assessment of work performance - the employee’s activities, his functions, and attitude towards work are assessed in their entirety;
- 360 degrees – the employee is assessed not only by the manager, but also by colleagues, subordinates, clients, and the employee himself;
- discussion - an interview, a discussion between an employee and a manager or experts about his work.
Combined methods of personnel assessment involve combining qualitative with quantitative:
- testing;
- summing up the ratings, deriving the average and comparing it with the standard;
- grouping workers into categories - excellent, average, poor.
The listed types of personnel assessment are quite one-sided; they do not evaluate the employee from all sides, but only some aspects of his activities or individual characteristics.
These methods are traditional for Kazakhstan, used when working in Almaty for a long time. They are being replaced by modern personnel assessment systems - comprehensive ones.
Object and Subject
At first glance, everything is clear. The object is the one being studied. The subject is the one who collects and analyzes information. But it's not that simple.
In the classical interpretation, department heads analyze the performance of ordinary employees, followed by higher management. But this requires special training and takes a lot of time. But their work tasks do not become less.
From an efficiency standpoint, it is better to delegate the procedure to the HR department. If it employs only a few people, it would be optimal to outsource the assessment of employees.
This, firstly, will allow the business and personnel service to focus on current tasks.
Secondly, outsourcing personnel analysis to a third-party company largely resolves the issue of bias.
Thirdly, it may turn out to be the only correct decision if the HR service in the organization consists of one HR person. After all, in a business assessment, the amount of work is too large for one person.
There is one more nuance: which personnel are subject to evaluation? In practice, ordinary employees are assessed regularly, and KPIs are monitored almost weekly. But managers are not checked so often, limited only to an analysis of the overall effectiveness of the department.
The catch is that if you do it “like everyone else,” then the result will be at the level of the “average in the ward.” In order to break away from competitors and get all the properties and benefits of employee research, its procedure must be followed completely. And this requires a systematic approach. In other words, business qualities are studied in all employees, from cleaners to the general director inclusive.
As a result of such a review, the management structure is literally laid bare - with all its advantages and disadvantages. An understanding comes of what to improve, how to optimize costs.
Again, this requires following a procedure.
Why do you need personnel assessment?
This event is beneficial to both management and employees.
The management of the enterprise based on the results of the assessment:
- determine the level of employees' knowledge and skills;
- will carry out personnel changes;
- dismiss employees who are not suitable for their positions;
- will advance talented people with great potential up the career ladder.
Employees will receive the following benefits:
- recognition of their merits;
- criteria to be guided by in work;
- solving organizational problems.
Assessment helps to determine a person’s potential, identify his role for the organization, and understand whether he is suitable for the position he occupies. Perhaps he was underestimated, and in another position he will bring more benefit and will be able to reveal himself to a greater extent. It also allows you to understand whether it is profitable for the employer to keep this employee in the position. If his performance is poor, he needs to be transferred to a position that matches his qualifications or fired altogether.
Tasks of personnel assessment in an organization:
- personnel planning;
- personnel selection;
- creation of a personnel reserve;
- identifying the need for training and retraining;
- analysis of business processes: determination of the standard and compliance with it;
- personnel motivation: incentives and sanctions.
Personnel assessment systems and methods in an organization should be aimed at selecting and hiring specialists appropriate for the position, have criteria for any personnel decisions (reshuffles, filling vacancies, paying salaries and bonuses, dismissals, etc.), optimize training costs, increase discipline and improve working conditions.
Stages
Studying business qualities begins with drawing up a program. This document describes who is assessed and in what period. It is extremely important to describe in detail the criteria and subject of assessment.
Criteria are indicators to be determined. It is necessary to separately highlight a group of general indicators for the organization, and specific ones - describing a number of positions or a narrow area of work.
At the same time, you cannot assign indicators to employees that do not directly depend on their work. For example, an online store operated within a chain of consumer electronics stores. During the quarantine period, the network management decided to conduct a business assessment of the staff. Management named one of the indicators for specialists responsible for the relevance of the catalogue... the level of sales. Having learned about this, half of the specialists submitted their resignations.
The evaluation criteria can be reduced to 4 groups. These are business, moral, professional and specific. The last group requires explanation. This is a group of indicators characteristic of a narrow area of work or a small group of specialists.
Speaking about the subject of assessment, one should clearly distinguish between the analysis of psychological qualities, professional capabilities, process and labor efficiency.
The next stage is the development of assessment techniques. This is not just a document describing who and how to study. First of all, this is “fine-tuning” the procedure to suit the company’s characteristics. Then the composition of the working group, or commission, is determined. The next step is to discuss the analysis of the results. Roughly speaking, it describes what the data obtained is to be measured and what processes they can talk about.
Only now, when information collection methods, analysis criteria and responsible employees have been agreed upon, can we begin the assessment itself.
Comprehensive assessment methods
They help increase team productivity or identify shortcomings in personnel policies.
Certification is the conduct of regular examinations for employees. Based on the results of the exams, the employee’s qualifications, the results of his work over the period, skills and abilities, the so-called soft skills, are checked. Pregnant women, as well as personnel hired for a position less than a year ago, are not subject to certification. This check is also not carried out for top managers; there are other methods for them.
The assessment center is a multi-day event with tests, business games, group discussions, interviews, and case solving. During the entire assessment event, participants are observed by experts who render their verdict.
Business games - allow you to simulate real work issues, during which the skills of the subject are tested. These games also have a learning effect: by going through them, the employee learns how to act in situations that he has not yet encountered in real work.
KPI (Key Performance Indicators) is a system for assessing personnel in an organization based on key performance indicators. A list of indicators is being developed, which can be qualitative or quantitative, personal or general. Employees are assessed according to these criteria, and the scoring mechanism must be accessible, understandable, and transparent.
Management by objectives (MBO, Management by objectives) is a method of assessment in which an employee is given a goal for a certain period of time. The employee's actions in achieving this goal are evaluated. The criteria must be measurable, specific, and achievable.
Analysis of results
Once the assessment data has been collected, the important step of analyzing the results begins. The information received is divided into 3 categories:
- Indicators of the level of professional knowledge, skills and abilities. They talk about the ability to complete a task on time and efficiently. This includes planning, organization, and a general approach to work.
- Indicators of psychological qualities. They describe the individuality of the employee with his aspirations and development prospects.
- Indicators of professional behavior. This includes everything that characterizes the behavior of an employee in a professional environment. However, to collect them, a number of conditions must be met. We'll talk about which ones below.
How is personnel assessment carried out?
If the need for an assessment is identified, its purpose must be defined and formulated. This could be monitoring the state of affairs in the team, analyzing the quality of work, determining the suitability of employees for the work performed. It is also necessary to establish who exactly will be assessed: the entire team, part of it, employees occupying certain positions, specific people. The criteria by which personnel are evaluated are determined, and methods are selected.
To prepare an audit, you need to create an internal regulatory framework, that is, regulations and other documents that will guide the assessment. It is also necessary to train appraisers and inform personnel about the upcoming audit, why it is needed, and what benefits it will bring.
The main stage is assessment activities. Afterwards, the collected information is analyzed. Based on the analysis, management decisions are made: dismissal, promotion, transfer to another location, personnel training, etc.
Conditions for a competent assessment
HR specialists identify a number of prerequisites for effective employee assessment.
- Validity, reliability and reliability of assessment tools. It implies accuracy, reproducibility of results under similar conditions, the instrument’s focus on significant professional characteristics, as well as protection from attempts to consciously or unconsciously distort the results.
- Objectivity of collection. Information is collected accurately, objectively, regardless of mood, personal relationships, or other extraneous factors. At the same time, the actual level of skills, knowledge, and professional competencies is assessed.
- Transparency and evidence. The procedure and results must be clear to the person assessing (including the person making the decision on the results) and to those being assessed.
- Complexity. This concerns not only the completeness of information collection or the depth of analysis. The assessment procedure itself should be built into the work process so that it does not distract employees from work and takes place at an optimal level of motivation.
What is personnel assessment
Personnel assessment is a system that helps to identify the quality of personnel and evaluate their “usefulness” for the organization. Based on it, management makes decisions that will increase the productivity and performance of employees.
The assessment has three directions:
- qualification;
- analysis of work performed;
- personal qualities.
Personnel are assessed according to clearly established parameters that help analyze personnel from all angles.
The score should be:
- regular;
- with a clearly defined goal;
- with transparent, accessible, understandable criteria for assessment.
Staff are not checked just like that. There must be reasons for this, and verification activities must be carefully prepared.
In what cases is personnel assessment required:
- high turnover;
- low productivity;
- staff complaints about working conditions;
- planned opening of new or development of existing directions;
- the need for restructuring, optimization of work;
- the need to form a personnel reserve, a training and retraining plan, and other changes in personnel policy.
The listed situations often occur among organizations operating in Kazakhstan. They can occur at any stage of work in Almaty or any other city; their presence does not mean the impossibility of further activities, this is a normal work process. Personnel assessment helps to overcome personnel problems, so it must be carried out regularly to ensure that the atmosphere in the team is working. In addition, the assessment is carried out during the selection of personnel and the introduction of new specialists into the team.
The preparation and conduct of assessment activities can be entrusted to the HR department of the enterprise or to professionals, for example, an HR provider in Kazakhstan.
conclusions
Business skills analysis is a multi-step process that requires management attention. It is not necessary to delve into its details. But going along with your subordinates and studying the results is useful for everyone.
Note: sometimes the optimal solution is to hire a third party to evaluate the company’s internal employees.
When considering the effectiveness of personnel, it is important not to go to extremes: on the one hand, objective indicators are important, on the other hand, behind a set of numbers that describe an abstract personality in a certain position, there is always a living person. Keep this in mind so that the assessment process brings maximum benefit to both the company and the people on whom it rests.
Personnel evaluation criteria
Each organization will have its own set of criteria, tied to the specifics of its activities. To assess how effective an employee is and how suitable he is for the position he occupies, he is assessed according to the following parameters:
- Professional knowledge, skills, abilities. These are what are called hard skills, that is, what an employee can do as a professional. Can they deliver the quality and volume of work expected from him? This criterion is verified by standards, tests, professional exams, and expert assessment.
- Personal characteristics and skills. These are soft skills that talk about how a person communicates in a team, whether he can be a leader or part of a team, whether he can become a rebel, etc. Based on the soft skills test, a psychological portrait of the employee is drawn up, his weaknesses or strengths are analyzed. These qualities allow you to find the optimal place in the team, position, position.
- Assessment of labor results. A system of ideal indicators is being developed to evaluate employees. This could be a sales plan, the number of visitors, profit growth, etc. Then the real results of the work are compared with the reference ones. Assess deviations and decide how to correct them. This is perhaps the most difficult group of criteria. Planned indicators should not be excessive or taken out of thin air. They must be objective and realistic to achieve; they must take into account force majeure and the specifics of the enterprise’s activities.
- Company loyalty. This is an additional criterion, because not every position in an organization requires the loyalty and involvement of an employee. But loyal employees are more useful because they put in more effort, work overtime, do not quit because of minimal troubles, do not start riots, do not participate in intrigues, and work at the enterprise for years and decades.
- Special requirements for narrow specialists or top managers. Such employees are “piece goods”, so they need to be assessed personally.
What to do with the assessment results
Based on the results of the activities, the manager receives evaluation sheets for each person being inspected. The sheets evaluate all the criteria selected at the beginning of the inspection, draw conclusions, and make recommendations. If there was such a task, ratings, comparisons are given, and prospects are described. In short, management receives a full description of each subordinate. Based on it, he makes certain management decisions.
The conclusions of experts on employees may be available to a narrow circle: the manager, the head of the personnel department. Any personal information must be confidential.
It is necessary to discuss the results with the employee himself, but this must be done in a confidential dialogue with the manager, and not in the format of a call to the carpet.
The overall results, process, methods, evaluation criteria must be communicated to the entire team. This is required for openness, transparency and stimulating a competitive spirit that can increase productivity.
It is not easy to implement personnel assessment in an organization at the appropriate level, conduct it regularly and effectively. Recruitment agencies that select personnel for organizations in Kazakhstan and conduct events aimed at improving the personnel policy of enterprises can help in such work in Almaty.
OBJECTIVES OF STAFF PERFORMANCE EVALUATION:
- identifying the level of professionalism and quality of work: strengths and weaknesses of employees;
- calculating the ratio between the costs of maintaining a specialist and the volume of work performed: is it profitable to maintain this staff unit;
- assessment of personnel potential: is it possible to promote specialists to leadership positions without hiring and training people from outside;
- identifying the working behavior of employees and the functions of each of them in the team: whether he is able to express himself as an individual or acts as a team player;
- formation of a motivation mechanism and directions for personnel development.
The analysis allows us to increase the efficiency of individual specialists and the company as a whole. An integrated approach to assessing personnel performance and the use of fundamentally different methods are aimed at determining compliance with multiple indicators and criteria. Some analytical systems have been adopted from foreign practice, and enterprise administration often faces difficulties in their implementation. Therefore, it is recommended that personnel assessments be carried out with the participation of qualified consultants.
Stages of assessment
The assessment of positions and the suitability of employees and candidates for them includes several stages. Having gone through all of them, you can form an effective team of highly qualified specialists.
Selection
Recruitment involves identifying the most suitable applicants for positions and eliminating those who do not meet the company's requirements. At this stage, personnel are collected that can become part of an ideal work team.
A preliminary assessment of competencies is carried out based on data from previous jobs, education certificates, diplomas, and resumes. Sometimes outside experts are invited to evaluate narrow specialists.
Next, business and personal qualities are assessed. To do this, they conduct an interview and ask you to pass a series of tests. Interviews can be conducted in the office, over the phone or online.
To successfully complete the first stage you need:
- Verify the authenticity of the information provided by the candidate. Use experts or send requests to educational institutions that provide certificates. This point also includes testing the knowledge that was declared by the candidate.
- Checking the reliability and loyalty of the future employee. They find out the person’s life position, his motivation, and the reason for dismissal from previous jobs.
- Clarification of negative moments from the past. They make an inquiry about the criminal record of the future employee, problems at previous places of work, and reputation.
Adaptation of new employees
During the adaptation period, it is important to constantly monitor new personnel, ensure that they are able to join the team and feel comfortable in the workplace. Also, the task of management and top employees is to help selected candidates understand the specifics and subtleties of working in a given company. This will reduce the outflow of newcomers and increase the chances of long-term fruitful cooperation.
At the same time, it is necessary to weed out unsuitable adapters. To identify such employees, regular tests, interviews with management, and surveys of senior colleagues, managers, and clients are carried out.
Personnel Management
When new employees have already joined the team and are actively performing their job responsibilities, job evaluation remains relevant. It allows you to timely identify and eliminate emerging discontent and communication problems, determine the reasons for non-compliance with standards and correct them.
At this stage, qualitative and quantitative methods are used: personnel assessment managers conduct interviews, surveys and group discussions, looking at the speed and quality of solving assigned tasks.
The task of personnel management is to increase team efficiency and reduce the turnover of new personnel. To increase the loyalty of valuable employees, a system of motivations, bonuses, salary increases, and career advancement are being developed. Weak personnel are considered as temporary employees.
Layoffs
Layoffs will become a profitable decision for business only if there is an impartial expert assessment of personnel at risk. Competent work with staff will allow you to:
- increase team efficiency, speed, quality of work processes;
- establish feedback with dismissed personnel;
- minimize the dissatisfaction of dismissed employees, reducing the likelihood of damage to the company’s reputation.