In the current economic environment, companies are increasingly realizing that their only endurable source of competitive advantage is how well they can assess and develop their human capital. Pre-employment intelligence and personality testing are more common than ever, and leadership development and executive coaching programs are becoming standard in organizations large and small.
One of the basic elements of an effective human capital strategy is a robust performance appraisal system that effectively differentiates between superior, average and poor job performance, and which also provides developmental feedback to employees so that they can build on their professional strengths and remedy their weaknesses.
One thing that organizations often neglect to do is to assess the performance appraisal system itself, in addition to assessing employees using the system. In my experience, it is very helpful to periodically survey employees to ask questions like:
- Does the performance appraisal system provide you with useful feedback?
- What is working well (or not) in terms of the logistics, timing and user interface of the performance appraisal system?
- How effective is the performance appraisal system overall?