Employee evaluation can be considered as one of the most important steps in an employee management process to be able to validate job completion, job suitability, From time to time, there is a reasonable bonus.

This is an indispensable, indispensable job for managers to improve their performance, motivate employees, and motivate them promptly, and help them overcome shortcomings.

However, staffing is not easy, so every business needs to set common criteria that apply to different levels of staff for the most objective evaluation.

Applied in the United States since the 1980’s, KPIs have been widely adopted by business executives around the world, and it is becoming an important tool for any organization or business. Includes a system of indicators to measure and evaluate employee performance through quantitative data and indicators. This index will help management capture the ongoing business activity in the business, the performance of each department, employees. Like OKR, KPI is one of the tools used to implement MBO for an organization.

Performance appraisal according to KPI brings greater efficiency in improving the performance of each group and individual:

For employees: Through a performance appraisal, they will capture the level of accomplishment of the task; Detect defects and improve performance evaluation; Paying based on the results of the KPI evaluation contributes to motivation and motivation for the employee.

For management: The job evaluation process will provide managers with an overview of the employee’s performance and a suitable compensation plan.

KPIs that are quantitatively and accurately measured by numbers, frequency, will contribute to improving the process of evaluating the work, the results of the work of employees will be evaluated more visually and transparently.

Moreover, when building the KPI system, the managers pay special attention to ensuring the objectives and work of each employee, the department follows SMART principles, including:

– S – Specific
– M – Measurable
– A – Achiveable
– R – Realistics
– T – Timebound

An administrator must make employees believe in fairness. In the assessment staff need to be democratic, for employees to be involved in this process. The evaluation system must be carefully constructed, the person in charge of the assessment must be fully trained. On the basis of proper objective evaluation to implement the salary and punishment policy in a timely and strict manner in order to encourage and motivate employees, pay attention to training and development of them to ensure that enterprises have human resources meet future business strategy.

Source: Synthesis