An employee scorecard , periodically rates a worker’s performance on the job. Performance rating provided to an employee is converted into a scorecard which would provide him clarity on achievement against each KPIs assigned to the employee. The scorecard should be kept simple so that both the employer and employee understand each of the parameters. Scorecards may be done manually or completely automated, wherein an employee gets a complete score of his performance at a click of a button. Scorecards are one of the effective ways to align the Management goals with employee’s goals and are useful if the parameters scored are measurable and objective.
Performance rating refers to assigned numeric rating given to measure the performance of an employee. Key Performance Indicators (KPI) are set every year for every position in the organization based on the overall company’s goals and objectives. Employee performance is rated against the achievement of the goals and objectives set for the employee. Rating mechanism is defined by every company based on the internal policy. Normally it is defined in a scale of 1 to 5 with 5 being Exceptional Performance and 1 being Poor Performance. There can be other scales as well as the company may like to define. Rating is advantageous since it quantifies the performance and provides the employee visibility on his performance achievements.
The exercise of defining the KPI is a strategic function and companies hire consultants experienced in this area of knowledge to define, communicate and implement the same. Please reach us if you are looking out for more clarity on the subject.
Author : Anusha Kannan