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    Employee Performance Rating Scale: Types and Tip…

    Performance reviews are crucial, both for the development of employees and for the company to meet its goals with its current resources. Effective reviews require careful preparation and often involve some type of rating scale. Choosing the right scale for your organization can help you measure the objectives and indicators most relevant to your bu...

    Indeed

    An employee performance rating scale is a tool that you can use to measure an employee's performance or achievement level. Many human resource managers use employee performance rating scales to quantitatively measure employee performance. The information from employee performance rating scales can help companies learn things like:

    •Which managers and team members are most effective in reaching the company goals

    •If there are any skill gaps the company needs to address

    •Which employees may have skills the company isn't currently using

    •When new training programs may benefit employees

    •When an employee feels like the company undervalues them

    •How much compensation an employee should receive

    •If an employee is eligible to receive any bonuses

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    Five-point rating system

    The five-point rating system is one of the most common employee performance rating scales because it's easy to use and provides consistent feedback to employees. The scale directs managers to score employees in different areas with a rating between one and five. While the specific definitions of each rating may vary depending on the company, a 1.0 rating typically indicates unsatisfactory performance and a 5.0 rating indicates exceptional performance.Related: Using Performance Management in the Workplace

    Likert scale

    The Likert scale uses descriptive measurements, rather than numerical. It usually includes five options, which include strongly disagree, disagree, neither agree nor disagree, agree or strongly agree. This scale gives managers a neutral rating option, which other scales don't always provide. Some Likert scales may also include a blank area for managers to provide written feedback, which can be helpful in explaining ratings that are sometimes subjective.

    10-point rating scale

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    You can choose the best employee performance rating scale for your team with the following tips:

    •Decide the number of ratings necessary. Decide how many scales are necessary for rating your team's performance. For some companies, three ratings may be too few to accurately measure an employee's performance, but 10 may be too many.

    •Evaluate your current performance measurement. It can be beneficial to first evaluate the employee performance measurement system you're using and what you like and dislike about it. This can help you narrow down options for choosing a performance scale that better works for your team.

    •Set clear definitions for each scale. When choosing the right employee scale, assign a clear definition to each scale. This ensures managers provide consistent feedback across the company.

    •Change the scale to meet your company's needs. It may seem like a challenge to find a rating scale that meets the unique needs of your team. Choose the one that most closely aligns with your needs and then adjust it to measure the indi…

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