Performance Appraisal Processes

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Typical ECI Compensation Projects:
Performance Appraisal Processes

Most U.S. employers utilize a pay for performance approach in determining employee pay levels. While a wide range of performance forms and approaches exist, including different raters and different criteria for what is rated (as shown in the table below), no perfect approach has yet been developed.

ECI consultants work with our clients to consider the pros and cons of various performance programs and to tailor the most appropriate approach to the organization. This considers the tradeoffs of a more thorough program (that does more, but often fails to get done) with simpler approaches (that are less useful, but are often better received by supervisors who must administer them.) The design of a program is significantly more than merely designing a form. The process needs to consider the intended uses of the appraisal and the concerns and interests of the supervisors and employees if the program is to succeed.

Primary Performance Appraisal Processes
Elements being rated	Potential Raters/Appraisers
Elements being rated	Supervisor	Self	Peers	Subordinates	Customers
Behaviors
Competencies
Results vs. Goals
Past
Others
= normally is capable of assessing
= often is not capable of making accurate assessment
The specifics will vary by situation and must be considered in the program design. When all of the raters are used - the program meets the definition of a 360^o appraisal program.

For more performance appraisal resources - see our "Articles & Speeches" section.