Effective Performance Appraisal Methods for HR Professionals

Performance Appraisal and Method

Organizations use a performance appraisal process to evaluate and assess an employee’s performance over a specific period. It involves measuring various factors such as productivity, quality of work, communication skills, teamwork, and other job-related skills. The primary purpose of an effective performance appraisal is to provide feedback to employees to help them improve their performance and contribute more effectively to the organization’s goals and objectives.


What is A Performance Appraisal?

A performance appraisal is a formal process by employers to assess an employee’s job performance and contributions within a specific period. It involves reviewing goals, objectives, skills, and accomplishments to provide feedback and determine areas of improvement or recognition. The appraisal often influences promotions, salary adjustments, training opportunities, and overall employee development decisions.


The Aim of an Effective Performance Appraisal in HRM

Performance appraisal is a crucial human resource management (HRM) process that aims to evaluate and analyze an employee’s performance and productivity within a specific timeframe. The primary purpose of performance appraisals is to provide employees feedback, help them identify their strengths and weaknesses, and provide guidance for future improvements. Performance appraisals can also determine an employee’s training and development needs, set goals and objectives, and make decisions about promotions, transfers, or terminations. Ultimately, performance appraisals are an essential tool for HRM to ensure that employees contribute to the organization’s goals and objectives and identify opportunities for growth and improvement.


How do Performance Appraisals Benefit Organizations?

Employee evaluations can influence an organization’s performance. They give organizations knowledge on how workers are contributing and allow them to:

  • Determine how management may enhance working circumstances to boost output and the caliber of the work produced.
  • Before they have an impact on departmental productivity, deal with behavioral difficulties.
  • Recognizing employees’ abilities will motivate them to give more.
  • Encourage the professional and skill development of staff.
  • Enhance strategic decision-making when necessary for internal hiring, succession planning, or layoffs.


7 Useful Performance Appraisal Methods For HR 

Here are some of the most popular performance appraisal tools organizations can use to evaluate their employees’ performance.


Management By Objective

Management by objective (MBO) is a performance appraisal method that involves setting specific, measurable, and achievable employee goals. The employees and their managers jointly set these objectives at the beginning of a performance cycle. The employees then work towards achieving these goals throughout the year, and their performance is evaluated based on how well they meet these objectives.

MBO is an effective performance appraisal tool because it provides clarity and focuses on what is expected of the employees. It helps align individual goals with the company’s objectives and enhances employees’ motivation and engagement.


Behaviourally Anchored Rating Scale (BARS)

Behaviourally Anchored Rating Scale (BARS) is a performance appraisal method that combines traditional rating scales and critical incident methods. BARS involves defining specific behaviors required for successful job performance and rating employees’ performance against these behaviors.

BARS is another effective performance appraisal method because it provides a clear and specific evaluation of employees’ performance, making it easier for them to understand their strengths and weaknesses. Additionally, BARS are less susceptible to bias since it is based on specific behaviors and not just general impressions.


360 Degree Feedback

360-degree feedback is a performance appraisal method that gathers feedback from multiple sources, including employees, supervisors, peers, and subordinates. The feedback is usually collected through questionnaires, and the employees receive a report highlighting their strengths and areas for improvement.

360-degree feedback is an effective performance appraisal method because it provides a comprehensive and well-rounded evaluation of employees’ performance. It also helps in identifying blind spots and areas for improvement that may not be apparent to the employees themselves.


Forced Distribution Technique

The Forced Distribution Technique is a performance appraisal tool that assigns employees to predetermined categories based on performance. The categories are usually top performers, average performers, and low performers. The distribution of employees across these categories is predetermined, and managers must place employees into these categories based on their performance.

The Forced Distribution Technique is an effective performance appraisal method because it helps identify top and low performers, making it easier to identify high-potential employees and those who need improvement. However, this method can demotivate employees, especially if forced into a low-performance category due to the predetermined distribution.


Psychological Appraisal

A psychological appraisal is a performance appraisal tool that involves assessing employees’ personality traits, attitudes, values, and interests to determine how well they fit into their job roles. This method can include interviews, questionnaires, and other psychological assessments.

A psychological appraisal is an effective performance appraisal method because it provides insights into employees’ motivations and behaviors, helping identify their strengths and weaknesses. However, this method requires trained professionals to conduct the assessments, making it more expensive and time-consuming than other performance appraisal methods.


Human Resource Accounting Method

HRA involves measuring the value of an employee’s skills, knowledge, and potential contributions to the organization as assets. This appraisal method can assist companies in identifying the strengths and weaknesses of their employees, providing feedback for improvement, and making strategic decisions regarding human resources management. By valuing employees as assets, the HRA method helps organizations evaluate their return on investment and improve overall organizational performance.


Project Evaluation Review

Project Evaluation Review (PER) is a performance appraisal method that assesses an employee’s contribution to a project. This method involves analyzing the employee’s performance based on the project’s objectives, tasks, and outcomes. The PER method helps identify improvement areas and recognize the employee’s achievements and contributions to the project’s success.


What is the Appropriate Timing for Conducting a Performance Appraisal?

Performance appraisals should be conducted regularly to assess an employee’s job performance and contributions. They typically occur within a specific period and involve reviewing goals, objectives, skills, and accomplishments. The timing of performance appraisals may vary depending on the organization’s policies. Still, they are generally scheduled periodically to provide feedback, identify areas for improvement, and make decisions regarding promotions, salary adjustments, and employee development.


Choosing the Right Performance Appraisal Method for Your Organization

Choosing the suitable performance appraisal method for your organization is critical to ensuring the approach aligns with your company’s objectives and culture. When selecting a performance appraisal method, it’s essential to consider both traditional and modern techniques. Traditional methods, such as graphic rating scales or ranking methods, may still suit some organizations. 

However, modern methods, such as 360-degree feedback or MBO, offer more comprehensive and insightful employee performance evaluations. Ultimately, the chosen method should align with the organization’s goals, culture, and job requirements while providing accurate and actionable employee feedback. 

Adopting a combination of traditional and modern methods can help ensure a balanced and practical approach to performance appraisals.


Frequently Asked Questions

What is the appraisal method in HRM?

The appraisal method in HRM is a process that evaluates employees’ performance based on their job requirements and performance expectations. The appraisal method helps organizations identify employee strengths and weaknesses, set performance goals, and provide feedback to improve employee performance.

What are the four purposes of performance appraisals?

The four purposes of performance appraisals are to improve employee performance, identify training and development needs, provide feedback for career development, and reward high-performing employees.

How often should performance appraisals be conducted?

Performance appraisals should be conducted at least once a year. However, the frequency of performance appraisals can vary depending on the organization’s requirements and the employees’ roles and responsibilities. Some organizations conduct performance appraisals more frequently, such as quarterly or bi-annually, for employees in positions that require frequent feedback and coaching.

A Step-by-Step Guide for Creating an Employee Development Plan

Understanding Employee Development

Employee development is the process of helping employees improve their skills and knowledge to become more effective in their roles. It involves providing employees with training, coaching, and support to help them achieve their career goals while contributing to the organization’s growth. Investing in employee development can yield significant benefits for the organization, such as increased productivity, employee satisfaction, and reduced turnover.

One essential aspect of employee development is creating an employee development plan. This plan outlines the steps and strategies employees and managers will take to improve skills and knowledge. 

7-step Guide for Creating a Winning Employee Development Plan

Here is a 7-step guide that’ll enable your organization to create an effective employee development plan:

Begin by Analysing the Abilities Needed

Before creating an employee development plan, it’s important to analyze the abilities needed for employees to perform their roles effectively. This includes identifying the essential skills, knowledge, and competencies required for each role in the organization.

Identify Personnel for Leadership and Career Development

The next step is to identify personnel for leadership and career development. This involves identifying employees with the potential to take on leadership roles in the future and providing them with the necessary training and support to prepare for these roles.

Match Employee and Corporate Objectives

Employee development plans must align with the organization’s overall objectives. By matching employee and corporate objectives, employees will be motivated to pursue their development goals, knowing that their efforts contribute to the organization’s growth.

Help Them Develop With You

Once employee development objectives have been identified, it’s important to provide employees with the necessary resources to achieve their goals. Providing employees with the resources they need to develop their skills and knowledge can help them reach their full potential in their roles, leading to increased job satisfaction, higher levels of engagement, and better performance.

One way to provide resources for employee development is by offering training courses. These courses can be in-person or online and may cover various topics, such as leadership development, technical skills, communication, and time management. 

Mentoring programs are another effective way to provide resources for employee development. Mentoring programs match employees with more experienced colleagues who can provide guidance, support, and advice. Mentors can help employees develop new skills and knowledge, build their networks, and navigate career opportunities within the organization.

Determine the Format of Your Training

When creating an employee development plan, it’s important to determine the best training format based on the plan’s objectives and the resources available to the organization. There are several different formats for training, including online courses, in-person training, and coaching, and each format has its advantages. 

Online courses are a popular format for employee training, as they are often self-paced and flexible. In-person training is another format for employee training, which can be effective for more complex or interactive topics. 

In-person training allows for hands-on learning, group discussions, and team-building activities. Coaching is a one-on-one format for employee training that can be particularly effective for developing leadership skills or addressing individual performance issues.

Use Employee Development Plan Templates to Help

When creating an employee development plan, it can be helpful to use templates as a starting point. Templates provide a framework for the development plan, making it easier to organize objectives and ensure that all critical areas are covered.

Employee development plan templates can be found online or through HR software. They typically include sections for identifying employee goals, outlining the steps to achieve them, and tracking progress. Templates can also include prompts for identifying skills and knowledge gaps, determining training needs, and setting timelines.

A template can streamline the process of creating an employee development plan, saving time and ensuring that all relevant information is included. Templates can also ensure consistency across development plans, making it easier to compare progress and identify trends.

When selecting a template, choosing one that aligns with the organization’s objectives and the employee’s career aspirations is essential. The template should provide a clear structure and easy-to-use format while allowing for customization and flexibility.

Monitor Progress and Make Decisions Based on Facts

Monitoring progress toward employee development goals is essential for ensuring that the development plan is effective and for making necessary adjustments. Regularly tracking progress enables managers to determine whether employees are on track to meet their goals, identify any obstacles hindering progress, and determine if the development plan is achieving the desired outcomes.

One way to track progress is to use data to measure key performance indicators (KPIs). KPIs can help measure the success of the development plan and provide insight into areas for improvement. Examples of KPIs include completion rates of training courses, improvement in performance metrics, or employee feedback on the development plan.

Importance of an Effective Employee Development Plan

An effective employee development plan is crucial for the growth and success of an organization. By investing in employee development, organizations can increase productivity and employee satisfaction and reduce turnover. Additionally, employees who feel valued and supported in their development are more likely to remain with the organization and contribute to its success.

Employee development plans also help organizations identify skills and knowledge gaps in their workforce, allowing them to provide targeted training and support to address these gaps. This, in turn, enables employees to perform their roles more effectively, resulting in a more efficient and productive organization.

An effective employee development plan is essential to organizational growth and success. By following the seven-step guide outlined in this blog, organizations can create a winning employee development plan that benefits both employees and the organization as a whole.

Frequently Asked Questions

What Is a Good Development Plan for an Employee?

A good development plan for an employee outlines the steps and strategies for improving the employee’s skills and knowledge. It should include objectives, resources, and a timeline for achieving the goals. The plan should also align with the employee’s career aspirations and the organization’s overall objectives.

What Is the Main Goal of Employee Development?

The main goal of employee development is to help employees improve their skills and knowledge to become more effective in their roles. By investing in employee development, organizations can increase productivity and employee satisfaction and reduce turnover. Employee development also helps organizations identify skills and knowledge gaps in their workforce, allowing them to provide targeted training and support to address these gaps.

Why Do Employees Need to Have a Development Plan?

Employees need to have a development plan to improve their skills and knowledge and achieve their career goals. A development plan provides a roadmap for employees to follow, outlining the steps and strategies for improving their performance and preparing for future roles. Additionally, employees who feel valued and supported in their development are more likely to remain with the organization and contribute to its success.

A Comprehensive Guide to Sourcing Top Talent

Understanding Candidate Sourcing

Candidate sourcing is the process of developing a pool of potential candidates interested in an opportunity being offered. It involves researching and engaging passive candidates, posting jobs, and leveraging industry connections. Sourcing candidates plays a crucial role in many aspects of recruiting and hiring. Finding top talent in today’s competitive job market is difficult without effective sourcing techniques.

Obstacles in Candidate Sourcing

Recruiting and sourcing candidates can often be challenging and time-consuming. Certain roles may have fewer applicants than anticipated or lack quality. When candidates don’t have the right skills or experience, the hiring process can take much longer than expected. Other obstacles that can arise include:

  • A lack of human resources skill sets
  • A lack of understanding of candidate behaviour and market trends
  • Difficulty identifying and connecting with passive candidates 

7 Effective Strategies for Sourcing Candidates

When it comes to sourcing top candidates, it’s important to understand the difference between sourcing vs recruiting. This guide will provide you with the best sourcing strategies to help you find the ideal candidates:

Use Social Media Platforms

Most job seekers use social media platforms to find job information, so organizations should use them to promote their hiring needs. Social media platforms provide direct access to potential job seekers and allow recruiters to converse with passive candidates. 

Prioritizing Passive Candidates

Organizations should pay close attention to passive job seekers, who often have the most sought-after skills, qualifications, and experience. This requires expanding outreach to industry organizations, leveraging alumni networks, approaching key influencers, and building relationships with potential future hires. 

Job Boards

Job boards can be an excellent way for organizations to list job vacancies and job seekers to find job opportunities. They provide a platform for employers and employees to meet each other, share information about their employment needs, and discuss the available candidates. Different job boards are available worldwide, serving different countries to provide recruiters the perfect candidate as per requirement.

Here are some job boards of India and USA.

Employee Branding

Organizations should build an attractive employer brand and corporate culture to attract the best talent. An effective employer brand strategy provides an idea of what it’s like to work with an organization and what to expect from a role.

Read more : Understanding the Importance of Employer Branding

Candidate Sourcing Software

To save time and money, organizations should utilize candidate-sourcing software that can automate the process of sourcing, screening, and potentially onboarding candidates.

With this kind of software, organizations can easily search through databases of candidates and filter them by criteria such as location, education level, and experience. The software will also give you recommendations based on your requirements. This is a great way to reduce the time spent recruiting, especially in the initial hiring stages.

Plan your Candidate Outreach

Organizations should create a well-planned communication strategy that outlines the recruitment process and provides details about the role. This will ensure that recruiters effectively reach out to the right candidates at the right time.

Follow up

After connecting with a potential candidate, recruiters must ensure they follow up with emails, telephone calls, and tailored messages. Follow-up is essential to maintain relationships and to show the organization’s sincere interest in candidates. 

 Here are some tailored message and email templates for recruiters.

Sourcing vs Recruiting: What’s the Difference

Sourcing vs. recruiting is an important distinction because it’s what we do when we’re looking to hire a new employee. Essentially, sourcing is the process of finding the right candidate for your company by searching online.

Recruiting is more of a traditional job search—where you’re actively trying to find candidates who match your needs and interests. Sourcing can be done remotely (on your computer) or in person (at a career fair or networking event), but recruiting typically involves hunting down candidates in your local area.

Sourcing can be used for all types of positions, from entry-level to senior leadership roles. Recruiting tends to be more specific to certain jobs or industries.

How Oorwin Can Help in Sourcing Top Talent

Oorwin provides you with a full-cycle recruitment solution, from sourcing qualified candidates to engaging them throughout the hiring process. Achieve greater speed and scalability in hiring by matching and ranking candidates based on AI-generated insights, then having those candidates evaluated for relevance.

Build a robust talent pipeline to ensure your organization works with top-tier candidates. Find the perfect fit for your organization with Oorwin today!


Frequently Asked Questions

What strategies can be used to source talent?

Organizations should use strategies such as leveraging social media platforms, prioritizing passive candidates, utilizing job boards, building an attractive employer brand, utilizing candidate sourcing software, planning outreach, and following up to source top talent effectively.

How can employers create an effective employer branding strategy?

Employers can create an effective employer branding strategy by creating a compelling mission statement, crafting job descriptions to highlight the organization’s culture and values, utilizing career blogs and webinars to engage applicants, and leveraging social media platforms.

What are sourcing Tools?

Sourcing tools are software programs and platforms that enable recruiters to source talent more effectively and efficiently. These tools help recruiters narrow down the pool of applicants, prioritize candidates, and create strong relationships throughout the recruitment process.

A Complete Guide to Employer Value Proposition

Creating a compelling Employer Value Proposition (EVP) is crucial in today’s competitive job market. As organizations strive to attract and retain top talent, they need to showcase what sets them apart as an employer of choice. In this comprehensive guide, we delve into the key components of an EVP, its significance in attracting the right candidates, and practical strategies to develop a strong and authentic Employer Value Proposition that resonates with potential employees.


Creating a Strong Employer Value Proposition: The Key to Attracting Top Talent

An Employer Value Proposition (EVP) is a statement that defines what an organization stands for and what it offers to its employees in terms of value and benefits. With the increasing competition for top talent in today’s job market, it’s more important than ever for organizations to have a compelling EVP that sets them apart.


What Is Employee Value Proposition(EVP)

An Employer Value Proposition (EVP) is a statement that defines what an organization stands for and what it offers to its employees. It promises the value and benefits an employee will receive in return for their hard work and dedication. This is crucial in attracting and retaining top talent, as it showcases a company’s unique qualities and culture.


Employer Value Proposition vs. Employer Branding

Employer value proposition and employer branding are often used interchangeably, but they have distinct roles in recruitment and retention. Employer branding communicates persuasive reasons to work for a company, highlighting its vision and mission. EVP outlines specific offerings, such as salary, vacation time, and training. Together, they form the foundation for attracting and retaining talent, providing consistent principles and policies for talent management.


What Are the Components of an Employee Value Proposition

Employee Value Proposition (EVP) encompasses various components, including competitive compensation and benefits, growth opportunities, work-life balance, a positive company culture, recognition and rewards, a supportive workplace environment, effective leadership, employee wellbeing programs, social responsibility initiatives, and opportunities for innovation and impact.

Several components make up an EVP, including:

  1. Competitive compensation and benefits
  2. Career development and growth opportunities
  3. Work-life balance support
  4. Emphasis on company culture and values
  5. Recognition and rewards for employees
  6. Positive and supportive workplace environment
  7. Effective leadership and management
  8. Employee wellbeing programs
  9. Social responsibility initiatives
  10. Opportunities for innovation and impact

How to Create an Effective Employee Value Proposition

Here are some tips on creating a compelling employee value proposition that might come in handy:

Understand your reputation

Before you start creating your EVP, it’s essential to understand your organization’s reputation. This can be done by conducting surveys, focus groups, or simply asking employees for feedback. This will help you determine what employees value about your organization and what you can improve.

Financial compensation

Financial compensation is an essential component of an EVP and can include salary, bonuses, and other benefits. It’s necessary to understand what your competitors offer in terms of financial compensation and determine what you can show that will set you apart.

Additional benefits

In addition to financial compensation, it’s essential to consider what additional benefits your organization can offer. It includes flexible work schedules, paid time off, and health insurance.

Career development

Career development is a vital component of an EVP. It is essential for attracting and retaining top talent. Consider what opportunities your organization offers for professional growth and development, such as training programs, mentorship, and leadership opportunities.

Work environment

The work environment is another critical component of an EVP and can significantly impact employee job satisfaction and well-being. Consider what your organization can do to create a supportive and positive work environment, such as promoting work-life balance and offering ergonomic equipment.

Determine the critical elements of your EVP

Once you have understood your reputation, financial compensation, additional benefits, career development, and work environment, it’s time to determine the critical elements of your EVP. This will help you to focus on what is most important to employees and what will set your organization apart.

Create your compelling EVP

Now that you have determined the critical elements of your EVP, it’s time to create your compelling EVP. This should be a clear and concise statement that captures the essence of your organization and what it offers employees regarding value and benefits.


Employee Value Proposition Examples

The employee value proposition encompasses the complete value an employee gains from their employer, which includes compensation, benefits, career development opportunities, and work environment.

Zip Co

Zip Co, a global buy-now-pay-later company, prides itself on being a values-driven organization. Their employee value proposition centers on creating a game-changing experience for customers and employees. The company offers perks such as paid parental leave, work from anywhere, volunteer leave, and a commitment to supporting employees’ well-being, including post-miscarriage and abortion support.


HubSpot, a marketing and sales software company, has crafted an exceptional employer value proposition centered around a harmonious work-life balance with the motto “Work and life should fit together.” Their compelling benefits include unlimited vacation, a week off in July, and a hybrid work model. Additionally, employees are empowered to grow through leadership training, recognition programs, and generous tuition reimbursement. HubSpot’s “Culture Code” further highlights its customer-centric, transparent, autonomous, and peer-oriented values, guiding existing and potential employees.


Netflix has cultivated a distinctive and innovative employer value proposition (EVP) since 2009. They prioritize work-life balance by offering unlimited vacation time, flexible working hours, and family support benefits. They emphasize financial well-being by allowing employees to choose compensation through flexible stock option programs and competitive salaries. Netflix promotes a culture that values independent decision-making, open communication, candidness, and retaining highly effective employees.


Why is Employer Value Proposition Important for an Employer

An Employer Value Proposition is essential for an employer because it helps attract and retain top talent. A strong and compelling EVP can set your organization apart from your competitors and make it easier to attract the best employees. It can also help to improve employee engagement and job satisfaction, leading to higher productivity and employee retention.

A strong EVP is essential for attracting and retaining top talent in today’s competitive job market. It provides a clear and compelling message about what your organization stands for and what it offers employees regarding value and benefits. By creating a strong EVP, you can help to build a positive and supportive work environment and attract the best employees who share your values and mission.


Frequently Asked Questions

What is an Employer Value Proposition?

An Employer Value Proposition (EVP) is a statement that defines what an organization stands for and what it offers to its employees. It promises the value and benefits an employee will receive in return for their hard work and dedication.

What are the benefits of having an Employer Value Proposition?

The benefits of having an EVP include attracting and retaining top talent, setting your company apart from the competition, creating a positive work environment, and improving job satisfaction and employee well-being.

How can I craft a compelling Employer Value Proposition?

To craft an effective EVP, you should understand your company’s reputation and critical elements, determine the key features of your EVP, and create a compelling statement that encapsulates the value your company offers to its employees. This can be achieved through creative storytelling and by highlighting the benefits and values that are most important to employees.

A Quick Guide to Employee Net Promoter Score | Oorwin

What is Employee Net Promoter Score (eNPS)?

Employee Net Promoter Score (eNPS) is a metric used to measure employee engagement, satisfaction, and loyalty in the workplace. It is based on a simple survey question, asking employees how likely they are to recommend their company as a workplace to a friend or colleague. The resulting score gives a snapshot of the company’s overall employee engagement and satisfaction.

Employee NPS Survey Questions

The survey questions are usually simple. The most common question is, “How likely are you to recommend the company to your friends and colleagues on a scale of 0 to 10?”. The responses are then categorized into three groups – Promoters (9 or 10), Passives (7 or 8), and Detractors (0 to 6).

How to Calculate Your NPS Score

The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, if 70% of employees are promoters, 20% are passives, and 10% are detractors, the eNPS score would be 60 (70-10).


Promoters are employees who would highly recommend the company to their friends and colleagues. These employees are engaged, satisfied, and loyal to the company.


Passives are employees who are neutral about the company and would not actively recommend it. These employees may need more time to be fully engaged or satisfied with their job, and companies must improve their engagement levels.


Detractors are employees who would not recommend the company to their friends and colleagues. These employees may have negative opinions about the company and may be unhappy with their job.

What is a Good Employee Net Promoter Score

A good eNPS score is one that is above 0, indicating that there are more Promoters than Detractors in the organization. However, a score above 50 is considered excellent and indicates a high level of engagement and satisfaction among employees.

What are the benefits of eNPS

There are many benefits to using eNPS, including the following:

  • Improved Employee Engagement and Satisfaction: eNPS provides insight into the level of employee engagement and satisfaction, which can help organizations identify areas for improvement.
  • Better Retention Rates: Happy and engaged employees are more likely to stay with the company, which can result in lower turnover and better retention rates.
  • Increased Productivity: Satisfied employees are more productive and motivated to perform at their best.
  • Improved Workplace Culture: eNPS provides valuable feedback on workplace culture, which can help organizations create a positive and inclusive environment for employees.

How to use eNPS effectively

To get the most out of eNPS, it’s important to use the results effectively. Here are some tips for using eNPS effectively:

  • Make it a regular practice: Make eNPS a regular part of your company’s employee engagement strategy by conducting surveys at least once or twice a year. Regular eNPS surveys help you track progress, identify areas that need improvement, and measure the impact of your engagement initiatives.
  • Communicate the results: Communicate the results of the eNPS surveys to your employees, and share what the company plans to do based on the feedback received. This shows your employees that you value their opinions and care about their engagement and satisfaction.
  • Take action: Use the eNPS results to identify areas that need improvement and take action to address them. For example, if a large percentage of employees are dissatisfied with the company’s work-life balance policies, consider revising them.
  • Track progress: Track the progress of your eNPS score over time and use it to measure the impact of your engagement initiatives. This will help you determine what is working and what needs to be improved.
  • Involve employees: Involve your employees in the eNPS process by asking for their input and feedback on how to improve the company’s engagement and satisfaction. This will show them that their opinions and suggestions are valued and help to create a culture of open communication and collaboration.

Frequently Asked Questions

What are the benefits of using Employee Net Promoter Score?

The benefits of using eNPS include improved employee engagement, reduced employee turnover, increased productivity, and insights into the employees’ perspective.

What is an NPS benchmark?

An NPS benchmark is a score used as a comparison to measure the performance of a company’s eNPS. The benchmark varies from industry to industry, but a score above 50 is typically considered good.

How to use NPS survey results for improvement?

To use NPS results, identify areas for improvement and implement changes to improve employee engagement, satisfaction, and loyalty. Continuously monitor the results to ensure ongoing improvement.

Best Practices to Design a Performance Management Review in 2023

What is Performance Management

Performance management is setting goals and objectives, measuring progress, and providing feedback and recognition to employees to ensure they meet organizational expectations and achieve their full potential. 

It includes activities such as performance appraisal, coaching, and development planning. Performance management aims to improve employee performance and productivity, align individual goals with organizational goals, and build a culture of accountability and continuous improvement.

5 Best Practices to Design an Effective Performance Management System

Effective performance management is important because it helps organizations achieve their goals by ensuring that employees work toward them efficiently and effectively. It also helps to identify and address any issues or problems hindering performance and to provide feedback and support to employees to help them improve. Technological advancement has led to several new ways by which a company can design an effective performance management system.

Using OKRs for goal setting

Using Objectives and Key Results (OKRs) for performance management helps organizations set goals aligned with the organization’s overall strategy and objectives. It also allows for regular tracking and review of progress and encourages continuous improvement and learning. OKRs enable organizations to focus on the most important goals and help to prioritize efforts. Using OKRs in an agile performance management system enables organizations to move quickly and adapt to market changes, organizational structure, or team dynamics.

Ongoing Development Conversations

Ongoing development conversations are regular meetings between managers and employees that focus on discussing performance, setting goals, and identifying development opportunities. It allows employees to receive feedback on their performance, discuss their career aspirations, and identify areas for skill development. 

They allow employees to discuss their career aspirations and identify areas for skill development, which can help retain high-performing employees and improve the organization’s overall talent management. Such conversations enable managers to identify performance issues early on and address them before they become more significant problems. 

Continuous 360 Feedback

Continuous 360 feedback is a performance management process where employees receive feedback from multiple sources, including their manager, peers, subordinates, and customers. This feedback is collected on an ongoing basis and used to inform performance appraisals, goal setting, and development planning. It provides a more holistic view of an employee’s performance, including feedback from multiple sources, not just the manager. 

It helps to identify areas for improvement and development as employees receive feedback on their strengths and weaknesses from various perspectives. Such a feedback mechanism encourages open communication and collaboration, as employees receive feedback from their peers and subordinates, which can foster a positive and supportive work culture.

Social Recognition of Performance

It involves acknowledging and rewarding employees for their contributions in a way that is visible to their peers and the wider organization. It can include public recognition, bonuses, and awards and is often used in addition to traditional performance management methods such as appraisals and goal setting. 

The use of social recognition of performance helps to improve employee engagement and motivation, as it acknowledges and rewards employees for their contributions and encourages them to continue to perform well. It helps to build a positive and supportive work culture, as it enables employees to recognize and acknowledge the contributions of their peers, which can foster a sense of community and collaboration. 

Involve Employees in the Process

Involving employees in the performance management review process can increase their engagement. It can be done by allowing them to provide input on their performance, such as self-evaluation. The company can also invite them to give feedback on the performance of their peers, which can help to create a more well-rounded view of performance. The company can also get the employees involved in setting their own performance goals and objectives, which can help ensure they are aligned with the organization’s goals.

How to Implement a Performance Management Process

Implementing a performance management process can help organizations evaluate and improve their employees’ performance effectively. Let’s look at the steps that can be taken to implement a performance management process:

Performance Plan

The company must define the goals and objectives of the performance management system and ensure that they are aligned with the goals and vision of the organization.

  1.  Identify the key performance indicators that will be used to assess progress. These should be specific, measurable, and aligned with the goals and objectives of the system.
  2.  Develop a communication plan that outlines how performance will be communicated, reported, and discussed throughout the organization.
  3. Establish a timeframe for the performance management process, including the frequency of performance appraisals, goal setting, and development planning.
  4. Create a process for providing regular, constructive, and actionable feedback. This should include both positive and negative feedback and should be given promptly.
  5. Establish a process for recognizing and rewarding performance: Establish a process for identifying and rewarding performance that is aligned with the organizational values and goals and is fair and transparent.

Performance Management Goals

When setting performance management goals for a performance review, it is important to ensure that they are specific, measurable, achievable, relevant, and time-bound (SMART). For example: Improve customer satisfaction ratings by X% within the next six months by providing additional training to customer service representatives.

Performance Review System

A performance review system is a process used by organizations to evaluate and provide feedback on their employees’ job performance. It can include a review of an employee’s job responsibilities, accomplishments, skills, and areas for improvement. A performance review system aims to help employees improve their performance, support their career development, and align their work with the organization’s goals. Performance reviews can be formal or informal and are typically conducted regularly, such as annually or semi-annually.

Feedback Giving Skills

Giving feedback is an important skill in performance management reviews. It involves providing honest and constructive criticism to help employees improve their performance and achieve their goals.

Some tips for giving effective feedback include:

  1. Be specific and clear: Provide specific examples of what the employee did well or where they need improvement, rather than making general statements.
  2. Be timely: Give feedback as soon as possible after the event while it is still fresh in the employee’s mind.
  3. Be balanced: Provide positive and negative feedback, and ensure the employee understands their strengths and areas for improvement.

Ongoing Employee Performance Management

Employees work to ensure that they meet the organization’s expectations and goals. This performance management is ongoing, meaning it is done throughout the year rather than during formal performance reviews. Some key elements of ongoing employee performance management include:


An effective performance management system is crucial for organizations looking to drive better employee performance. By engaging and motivating employees towards organizational priorities, organizations can ensure that they work towards achieving their goals efficiently and effectively.

Frequently Asked Questions

What Are the 3 Best Practices of Performance Management?

The three best practices that should be applied in performance management are –

  1. Using OKRs for goal setting
  2. Ongoing Development Conversations
  3. Continuous feedback

What Are the Most Important Things to Consider in Designing a Performance Review Process?

The crucial things to consider in designing a performance review process are – planning, teamwork, providing frequent feedback, and building a reviewing system, among others.

A Detailed Guide For Employers on Virtual Interview | Oorwin

The Meaning and Importance of Virtual Interviews

A virtual interview is conducted remotely via video conferencing and other online communication platforms. Conducting a virtual interview comes with many benefits. It allows people to participate in an interview even if they are outside the exact geographical location. It also helps discover better talents by using a more efficient recruitment process. The cost and time of onboarding are reduced to quite a remarkable extent. 

5 Essential Methods for an Effective Virtual Interview Process 

With numerous benefits, virtual interviews are indeed a blessing for companies. However, it is important to follow specific guidelines to get the most out of this process. Here are some ways to make the virtual hiring process more effective.

Giving Candidates Adequate Time To Prepare 

A candidate appearing for a virtual interview must be provided adequate time before the interview. It allows the candidate to be better prepared and have a fair opportunity to give their best to the interview. It also provides a level playing field to the candidate appearing virtually compared to the one appearing offline. 

Preparing a Relevant Questionnaire

A well-prepared questionnaire plays a big role in executing a virtual interview. To choose the best from the lot, it is essential to be prepared with relevant questions. Here are some of the key tips:

  1. Frame the questions related to the job description.
  2. Ask open-ended questions to make the conversation exciting and analyze the candidate’s behavioral pattern.
  3. Ask questions that help in determining the candidate’s leadership skills.

Testing Equipment before Interview

A virtual interview requires a computer, a software program, and a reliable internet connection. To have a seamless interview experience, one must check them to ensure it works effectively. Any fluctuations with the equipment can deprive the organization of onboarding the best talents. Therefore, prioritizing the equipment test is a must while conducting a virtual interview.

Observing the body language of the candidate 

While taking an interview, it is important to judge the candidate’s views and opinions along with their way of expressing them. However, in the case of a virtual interview, the body language analysis is complex due to limited camera coverage. However, it is possible only if the interviewer is observant enough to read through the lines. The broad criteria of judgment are:-

  1. If the interviewee maintains appropriate eye contact with the interviewer even during difficult questions, the person is confident and calm. 
  2. During virtual interviews, starting with a smile is also a good gesture. 

Following Up with the Candidates 

A follow-up mail is one of the best ways to win over the candidates. These small gestures boost the candidates’ confidence regarding the company and its culture, making them even more interested in joining the company. It is also a way of showing courtesy and valuing their hard work. Furthermore, a follow-up mail also gives an idea to the candidates about when and how they can expect further information about the interview. 

Preparation for Virtual Interviews

 Virtual interviews have become a necessity of the new era. Adequate preparations are required to make the best out of the interview process. Companies that opt for the virtual interview process should keep certain important things in mind, such as selecting reliable software to facilitate the interview process. Secondly, keeping the devices well-updated by clearing out the cookies and caches. And most importantly, maintain a well-structured email system to keep the candidates posted with the rules and regulations and other mandatory details about the interview.

Frequently Asked Questions 

What is the process of a virtual Interview? 

The virtual interview process is like the in-person interview but is conducted remotely using either video conferencing or software. 

How to engage candidates virtually? 

The key to a proper engagement is keeping yourself prepared. Prepare open-ended questions so that it is easy to know the candidates better.

What is the purpose of virtual interviews? 

Virtual interviews are conducted to make hiring easy, hassle-free, cost-effective, and efficient, along with hiring the best talents from all around the world.

Understanding Employee Referrals in a Recruitment Process

What Is an Employee Referral

When an existing employee or external partner recommends a candidate, this candidate is an employee referral. Deploying employee referrals for hiring helps bridge this gap, offering several beneficial aspects. 

Considered one of the best recruitment methods, employee referrals can be ideal as they are promoted through a company’s best possible ambassadors – the existing employees! Want to know why an organization should opt for an employee referral program and its benefits? 

What Is an Employee Referral Program

An employee referral program is a strategy that utilizes employee peer networks to create suitable candidates to meet job vacancies in a company. This program benefits the recruiter and its employees – the recruiter can cut down on hiring costs, and the employees get incentivized for every successful referral. 

Additionally, candidates who are referred are 4x more likely to grab the job offer as compared to the ones from other sources. Some of the key benefits of an employee referral program are as follows – 

  1. It makes the hiring process faster
  2. It helps to enjoy a better CPH (Cost per hire)
  3. Improves employee retention 
  4. It helps find suitable culture and value fits for organizations
  5. It makes talent acquisition for challenging job roles easier

How to Set up an Employee Referral Program in Organization

While the advantages of an employee referral program may sound lucrative, a company needs to know the basics of setting it up to obtain its maximum benefits. Here’s how to set up an effective employee referral program –

Choose When to Ask for Referrals

When deciding to use referrals for recruitment, it is important to consider the timing and specific role the company is trying to fill. This can be determined by setting the hiring goals and evaluating the success of past recruitment methods. For example, if the goal is to recruit candidates quickly, using referrals at the beginning of the hiring process may be a good option as they have been proven to reduce the overall hiring time.

Communicate Your Employee Referral Program

Once the company opts for an employee referral program, let the existing employees know about it. The company must ensure that the employees know the job opening, its requirements, candidate profile, how to refer, etc. 

Besides, the company can also offer incentives and bonuses for each successful referral to encourage participation in the program. Try keeping things well-organized and structured. Once the company starts receiving referrals, analyze if they meet the position’s requirements and take things forward. 

Motivate and Reward Employees

When a company starts an employee referral program, the employees become a whole new channel for bringing in new talent. However, that’s an additional slice for them besides day-to-day office work. Therefore, plan a reward scheme for the employees and let them know about it. Rewards may include movie tickets, cash bonuses, vouchers, or whatever the organization finds suitable. 

The company needs to be clear about the terms and conditions for referral bonuses. For example, if it wants to offer a cash bonus for referrals who stay with the company for at least three months, make sure that all employees are familiar with the terms related to the employee referral bonus. It will avoid any confusion and keep things transparent for employees. 

Track Employee Referrals

Now that everything is set up – it’s time for the report card. Start analyzing the employee referral program’s success using key metrics. They may include CPH, the ratio between total referred candidates and hires, department-wise referrals, the retention rate of existing vs. referred candidates, etc. 

The company must determine if the employee referral programs meet its expectations. This program has worked great for some departments while disappointing for a few. Please take note of the figures and from the next openings, use the referral program where it has worked well for the organization.

Benchmark your process with your Industry peers

The company must measure the performance of the referral program process with other organizations considered best-in-class. It will help to identify the internal areas of improvement. Moreover, benchmarking will help to measure the efficiency of previous performances. Besides, the company will be able to identify best practices to increase performance as benchmarking helps to understand how the competition operates. Given this, it’s crucial to benchmark the hiring process with industry peers.

Frequently Asked Questions

How Do You Use Employee Referrals?

Unlike conventional hiring methods, employee referrals are a way to find ideal candidates for job openings through coworkers. To start, the company can create an email with details like the job role, candidate profile, qualifications, and other requirements and send it to the employees. 

To make things more interesting and alluring for the employees, the organization can create a reward plan and announce the same to its employees. It helps motivate them and encourages them to participate in the referral program. 

How Effective Is an Employee Referral?

Approximately 88% of employers believe that employee referrals are the best way to find ideal candidates for a job role. Besides, as per a study, referred candidates have 2.5-6.5% more possibilities to accept job offers. The data itself talks about the effectiveness of employee referral programs. Additionally, it helps save the cost, time, and effort involved in hiring suitable candidates.

Performance Review Techniques for Managers in 2023 | Oorwin

How to Conduct an Employee Performance Review in Simple Steps

An employee performance review is a process where an employer assesses an employee’s work performance and provides feedback to the employee to help them improve and grow in their role. The review usually covers the employee’s strengths, weaknesses, achievements, and areas for improvement. Managers should follow a specific performance review technique to ensure consistent, objective, and fair evaluations. It can identify areas for improvement, reduce bias, communicate expectations clearly, and improve employee morale and productivity.

Learn about the Employee Positions and Past Records

For a comprehensive employee performance review, it is important to analyze each employee’s role and compare their performance to the company’s expectations. To write an effective review, a company should include data from engagement survey responses which provide insights into employee morale and job satisfaction. It should also use information from one-on-one meetings and consider awards or recognition the employee has received can demonstrate their strengths and achievements.

The company should also use data from talent review ratings: This provides an overall assessment of the employee’s performance and potential for growth. By incorporating this data, the performance review will be more comprehensive and focused on helping the employee grow and improve in their role.

Convey Proper Expectations and Align Understanding

To ensure effective performance review meetings for employees facing challenges in achieving goals, follow steps can be taken to match employee expectations with organizational performance criteria:

  • Review the Agenda: Encourage the employee to review the meeting agenda, add topics they would like to discuss, and be aware of the time and location of the meeting.
  • Prepare for the Meeting: Inform the employee of any information they should be prepared to discuss or reference during the meeting.
  • Outline Responsibilities: Ensure employees understand their responsibilities and have a clear action plan following the meeting.

Have a Clear and Actionable Agenda

A clear and actionable agenda is a must in every performance review process. A manager will certainly want the employees to be prepared for the work review conversation, and simultaneously, the manager must prepare for the same. Before heading to the main process, have a small discussion with the employee on the main things to discuss, plan what  suggestions will be for the employee, what can be the ideal performance review questions, upcoming goals, etc.

Provide Constructive Feedback

Constructive feedback is essential for an effective employee performance review. Here are a few tips for delivering constructive feedback:

  • Be specific: Provide specific examples and details to support the feedback rather than general statements.
  • Be objective: Use facts and data to support the feedback and avoid personal opinions or biases.
  • Offer solutions: Offer suggestions for improvement or solutions to any issues that were raised.
  • Balance Negative and Positive: Provide a balanced view by highlighting strengths and improvement areas.
  • Build a Two-Way Communication: Encourage open and honest communication by allowing employees to ask questions and provide feedback.

Ask for proper feedback

Companies should definitely ask for feedback from employees during performance reviews. It can be done through various ways: 

  •  Encourage open communication to share their thoughts and opinions during the review.
  • Ask specific questions about the employee’s role, performance, and work environment.
  • Provide a safe environment: Create a safe and non-threatening environment where employees feel comfortable providing honest feedback.
  • Listen actively: Encourage employees to share their feedback by actively listening and showing genuine interest in their thoughts and opinions.
  • Provide anonymous feedback options for employees to provide feedback anonymously, such as through an online survey or suggestion box.

Allocate Necessary time

To ensure a comprehensive and effective employee performance review, it’s important to allocate enough time for the process. The manager must plan to ensure both parties have enough time to prepare. A realistic time limit must also be set for the meeting to ensure all relevant topics can be covered. Distractions must be avoided, and time must be allocated for follow-up after initial review if required.

Create Proper Documentation

Though it is arguably the most sensitive part of the performance review process, managers often forget about the performance of the employees throughout the year. If done so, they review their work based on their current performance, which is a big mistake. A candidate’s work should be judged on his overall performance; documentation is necessary to keep that performance record. Create a document for every employee, and mark their performance reports by their behaviors, discussions, feedback, attendance percentage, etc.

Reflect on the Ongoing process and Work on Future Steps

Lastly, whatever the result comes out from the performance review of the candidates, always work on the ongoing growth process. If the present result is unfavorable, work on it to make it preferable. And if the results are good, then work on making it better. 

Using Artificial Intelligence for Performance Reviews

Performance review techniques for managers using AI can offer several benefits, such as objective evaluation, reducing unconscious bias, and providing a comprehensive analysis of an employee’s performance. AI-powered systems can collect and analyze data from various sources, including work performance metrics, employee feedback, and peer reviews, to provide a well-rounded assessment of an employee’s strengths and weaknesses. This information can be used to provide targeted feedback, identify areas for improvement, and make informed decisions about promotions, training, and development opportunities. Additionally, AI-powered systems can help managers streamline the performance review process, saving time and increasing efficiency.

Frequently Asked Questions

What should an employee performance review include?

The employee performance review shall include the employee’s overall work performance in a year, figuring out his strengths and weaknesses, offering feedback on their work, as well as setting future goals to accomplish.

What are the four pillars of performance?

The four pillars of performance – planning, monitoring, reviewing, and rewarding form the foundation of an effective performance management system. By consistently following these pillars, organizations can effectively set goals, track progress, identify areas for improvement, and recognize and reward outstanding performance. 

What drives good performance?

To make  employees perform well, setting goals for them is necessary. Clear them about the objectives and the expectations so they can work accordingly and help achieve goals, eventually elevating their performance.

Understanding the Importance of Employer Branding

What is Employer Branding

Who doesn’t want their company to have an excellent reputation and be on every talented candidate’s list of dream companies? Besides being at the forefront of innovation, an organization must build its brand to attract the best candidates to work for them. 

 Employer branding comes into the picture here. Employer branding refers to a company’s image and reputation as an employer. It encompasses the company’s values, culture, and employee experience. It can help attract and retain top talent. Employer branding strategies can be communicated through various channels, such as a company’s website, social media, and employee testimonials.

Why is Employer Branding So Important

Employer branding is important because it helps attract top talent, improve employee engagement and retention, and ultimately improve a company’s overall performance. It helps to create a positive perception of the company as an employer, which can increase the number of job applicants, reduce employee turnover, and improve the overall productivity of the workforce. 

Additionally, a strong employer brand can also help to attract and retain customers, as employees who are engaged and satisfied with their work are more likely to provide excellent customer service.

7 Reasons to Prioritise Employer Branding

Attract Great Employees and Retain Existing Ones

Employer branding can help attract great employees by creating a positive reputation and image for the company. It can be achieved by showcasing employee testimonials, highlighting employee perks and benefits, and promoting a positive company culture. 

Employer branding also helps to retain existing employees by improving employee engagement and satisfaction. Employees who feel valued, respected, and fulfilled in their work are less likely to leave the company. Employer branding can foster a positive work environment that builds employee engagement by promoting open communication, offering professional development opportunities, and promoting work-life balance.

Reduce Recruitment Costs

Employer branding can help to reduce recruitment costs in a few ways:

  • Increase in Applicant Quality: A strong employer brand can attract top talent, which reduces the need to spend as much on recruiting and hiring efforts.
  • Decrease in time-to-hire: A strong employer brand can also speed up recruitment, as more qualified candidates will apply for open positions. This can decrease the time it takes to fill open positions, saving recruitment costs.
  • Decrease in Employee Turnover: A strong employer brand can help reduce employee turnover, saving on the cost of recruiting and training new employees.

Convert Your Internal Force Into Brand Powers

There are several ways to convert internal force into brand power for employer branding:

  • Leverage employee testimonials: Encourage current employees to share their experiences working at the company on social media, review sites, and job boards. 
  • Highlight company culture: Share photos, videos, and stories that showcase the company’s values, culture, and employee experience. 
  • Create an employee referral program: Encourage current employees to refer their friends and colleagues for open positions. This helps to create a positive reputation among potential candidates and increases the likelihood of hiring top talent.
  • Invest in employee development: Offer training, mentoring, and professional development opportunities to help employees grow and succeed within the company. 

Enhance Employee Engagement

Enhancing employee engagement is an important aspect of employer branding, as engaged employees are more likely to be satisfied, productive, and committed to the company. A few ways to enhance employee engagement for employer branding can be effective communication, encouraging teamwork, providing growth opportunities, recognizing and rewarding employees, and encouraging employee involvement in decision-making.

Convey Your Brand Value

Conveying a company’s brand values is an important aspect of employer branding. It helps attract and retain top talent by differentiating the company from competitors in the job market. Developing a consistent brand message, sharing the company’s mission and vision, highlighting company culture, and sharing success stories are ways to convey a company’s brand value.

Demonstrate Your Unique Culture and Diversity

Employer branding can be used to demonstrate a company’s unique culture and diversity through:

  • Communicate company values: By clearly communicating the company’s values, such as inclusivity and diversity, it can attract a diverse range of candidates who align with those values.
  • Showcase diverse employee profiles: By showcasing them on the company’s website, social media, and other recruitment materials, it can demonstrate that the company values and respects diversity.
  • Encourage diversity in recruitment: By implementing diversity hiring practices and goals, the company can attract a more diverse range of candidates and increase the diversity within the company.
  • Promote diversity and inclusion initiatives: By promoting employee resource groups, diversity and inclusion training, and other programs that support diversity and inclusion, the company can demonstrate its commitment to diversity and inclusion.

Showcase Your Digital Competence

Showcasing a company’s digital competence is an important aspect of employer branding, as it helps to attract and retain top talent in today’s digital world. Here are several ways to showcase a company’s digital competence for employer branding:

  • Highlight the company’s digital initiatives: Share information about the company’s digital initiatives, such as implementing new technology or adopting digital processes. 
  • Share employees’ technical stories: Share employees’ success stories about how they have grown and achieved their goals in the company, especially in the digital domain. 
  • Leverage social media: Use social media to showcase the company’s digital competence by sharing information about digital projects, initiatives, and employee success stories. 

Final Thoughts

Employer branding is a crucial aspect of any company and requires time and effort to implement effectively. It is to understand the benefits of a strong employer brand and how it can positively impact a company in the long term. Building a strong employer brand is a team effort, and it is important to involve key stakeholders such as human resources, recruiting the CEO, and the marketing team.

 Though a company may not be able to control every aspect of its employer brand, it can build the narrative and ensure that people positively perceive your company. It can lead to better employee retention, an influx of talented applicants, and a positive impact on other business areas.

Frequently Asked Questions

Why Is Branding Important for Employers?

For employers, branding is of great use, as it assists in hiring new candidates in their company and maintains a decent culture, even if there’s a shortage in marketing costs.

What is an example of employer branding?

 Employer branding focuses on building a company’s reputation as a desirable workplace. It can be promoted through various channels, such as the company’s website, social media, job postings, and employee testimonials.