The largest organizations measure employee performance; however, many smaller organizations still lag behind managing data and measuring employee performance. Without understanding data, decisions in hiring can be affected. If employee performance reviews are conducted poorly or measured unreliably, hiring decisions, both good and bad, will unlikely be understood let alone identifiable.
The first step in gaining insights from data is to collect data. However, it is important that the data is reliable as it is collected and measured. Without ensuring the reliability of the data, any insight would be untrustworthy and potentially faulty. Organizations need to have a system in place that both reliably and objectively measures performance. Without it an organization will not be able to determine whether their hiring practices are good or bad.
Measuring Performance for Future Hiring Decisions
Once an organization has a reliable system to measure employee performance, a company can begin to identify whether a new hire was a good hire or bad hire. Using performance reviews and data for the hire; data such as education, recruitment source, experience, and other indicators, a company can identify and tease out insights for what processes and data led to a great hire and conversely led to a bad hire.
Measuring performance first requires a well-defined criterion of success. It is important to collect data throughout the course of their work, and schedule times for performance reviews. New hires often take about a month or so of onboarding and nearly a year before they are fully familiar with all the working processes and routines within a company. It is important to schedule performance reviews earlier for new hires. These reviews will vary across the industry but having a system that helps perform a performance review at any moment is better than a system the does not actively collect data throughout the year. The key items to measure are how the new hire’s education and experience stack against their performance on the job in terms of an employees’ knowledge and abilities.
Employee Performance Reviews Lead to Better Hiring Practices
Using performance data from employees’ companies can create an advantage by improving their hiring practices. The insights you will potentially gain will lead to recognizing a better ROI on recruitment practices and where to spend money on recruitment. Additionally, by having better performance reviews, a company can gain insights on what education, skills, abilities, and experience leads to better performance in certain roles. Also, some insights you may gain might be novels, such as identifying that certain skills or abilities are a better performance indicator than education or experience. This will help in defining roles and job descriptions, that will help attract talent with the skills and abilities that lead to success rather than relying on just education and experience.
Performance reviews are not just for measuring employee performance, it is a system that can help with better hiring decisions and improving a company’s bottom line. However, it is important to have robust performance management and review system in place. Not all performance management systems are equal. It is important to have a system that is secure, reliable, and trustworthy. For a system that is secured, reliable, and trustworthy consider beepHR, the only HR software that is built on blockchain technology that collects performance data and uses advanced AI to help organizations make better decisions using data.