How to Evaluate Competency in Employees

From the shop around the corner to a million dollars corporation, employees are the most valuable asset in all businesses. Hence, a proper evaluation should take place to measure if the investment is giving its best return to the organization. 

What is an Employee Competency Assessment?

It would be wonderful to have a competency tool to measure the employees’ output in the business automatically. Although such a tool does not exist, there are some ways to see how well the employee is performing. The rise in an organization is an excellent way to see that the employees are giving their best. 

Nevertheless, individual assessment is compulsory at all levels of business. Some businesses lack such evaluation while others have strict policies and techniques to push their employees to perform their very best. 

Benefits For Competency-based Assessments

All corporations must conduct a competency-based assessment for multiple reasons. Firstly, it ensures everyone in the organization is performing to their full potential. This excellent performance is crucial as it will boost up the business. Hence, an organization should evaluate the competency of its employees every six months. 

It will not only push employees to perform at an excellent level, but it will provide specific areas of improvement. Hence, it will give insight into future workshops or seminars. 

Furthermore, competency-based assessments motivate and engage employees. It enables employees to recognize their skills and knowledge. In other words, you are empowering them to take complete control of their career. 

In conclusion, competencies and performance go hand in hand, which means that the more the competencies, the greater the motivation and encouragement to strive for higher performance. 

5 Ways to Assess an Employee Competency

There are multiple ways to assess competency in employees. Some are straightforward, and others are practiced rarely in an organization. Anyhow, it is vital to be aware of all the possible ways to assess an employee.  

1. Assess with a test

The traditional method of testing technical and theoretical knowledge is a great way to assess employees. A pre-defined standard test evaluates knowledge, skills, and an in-depth understanding of the employees’ capabilities to perform at their role in a business. 

2. An employee self-check

An HR manager should also conduct self-assessment among the employees. This method might be not as effective because their evaluation may be off reality. Nevertheless, it will send a psychological message to the employees where they should be standing in a particular job title. 

3. Ask the clients for feedback

Asking the feedback from the client is an excellent way to get an insight into how well is the client satisfied. In the end, the client should be satisfied. So why not ask the source of the growing business? 

4. Feedback from others

Another effective way is to gain feedback for each employee from other team members. Of course, the feedbacks should stay confidential. Moreover, it is more of a constructive approach and not taking action on one individual’s opinion.

5. Accomplishments

It is a simple rule. Employees who achieve more accomplishments have better evaluations. The achievements could be the number of total sales made or the number of five-star ratings. It could even be the number of complaints that a particular employee has received. These kinds of data can give an excellent insight into an employees’ performance. 

6. A 360-Degree Approach

In the year 1949, a famous author, Marshall Goldsmith developed an HR tool known as a 360-Degree Approach. Many workplaces have adopted this powerful tool to evaluate all levels of employees in a corporation. 

This non-traditional HR tool works as an all-round feedback process. It is where the supervisor and other employees provide feedback to one another. In other words, the supervisor gets an evaluation, and at the same time, gives feedback to his employees. 

In detail, employees can evaluate supervisors in their communication, leadership skills, and other aspects of management. Hence, this gives the employees the empowerment to provide constructive feedback to the supervisor. It is a replacement of the traditional method of just the supervisor having the power to portray feedback to its employees. 

Conclusion

Each company has its approach to evaluate a competency among employees. Some take the 360-degree approach while others stick to the traditional one way constructive feedback. 

Whatever the approach, the fact remains that the more the evaluations, the greater the motivation to strive harder. The in-depth feedback of each employee means devoting more time and additional resources to improve the weak spots. Subsequently, investing your time and energy in such steps from the evaluation will eventually give futile business results.