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How to Develop Custom Performance Appraisal System in UAE?

The custom performance appraisal system in UAE are not very common. Usually businesses rely on cloud-based or commercial off-the-shelf solutions. The biggest problem with ready-made or stock performance appraisal system is that they are standardized for a particular industry, hence they are not as that flexible. However, every business is different and unique, and all businesses develop a completely unique culture and have different goals, needs and preferences for the performance management. Using a stock or commercial off-the-shelf solution can never fulfill such needs.

Therefore businesses start looking into the possibilities to develop a custom performance appraisal system. For that businesses have two choices either they get it done by the internal software development team, which is very less obvious, and most of the time businesses doesn’t have IT teams who can deliver that kind of sophisticated application. The other choice is to acquire the services of a professional software development agency in Dubai or anywhere else in UAE who is experienced in HR solutions and performance management systems.

However, even if a business acquires a professional service provider or vendor, they must still have adequate understand of the performance appraisal system. In this blog we will discuss the important factors which will help businesses to get a high-performance and impactful performance appraisal system in UAE.

How to Develop Custom Performance Appraisal System in UAE?
How to Develop Custom Performance Appraisal System in UAE?

What is a Custom Employee Performance Appraisal System?

An employee performance system is a set of methods, techniques, tools and framework used to evaluate employee performance and progress against a pre-defined objective and it helps identifying the weaknesses, strengths and areas of improvement. The prime purpose of the employee appraisal system is to ensure that all the available resources are progressing in the right direction and their efforts are fully aligned with the high-level organizational goals and strategic objectives.

The performance appraisal system is a foundation stone for growth and stability. Only by leveraging the full potential of the employees, a business can sustain and grow in the highly competitive and fast-paced markets like UAE. The employee performance appraisal system provides a comprehensive framework to collect employee performance data and feedback and transform this into actionable insight which helps management and HR department to take informed decisions and progress towards their high-level organizational goals and vision.

When we say custom employee performance appraisal system the only difference is how the system is developed. A custom employee performance appraisal system is developed exclusively for a particular business as per their exclusive and very unique business needs. That is why it is called a custom employee performance appraisal system.

See Also: What are the Features of a Best Performance Management System?

What is a Custom Employee Performance Appraisal System?
What is a Custom Employee Performance Appraisal System?

What are the Benefits of Using a Custom Performance Appraisal System?

An effective performance appraisal system help businesses drive the productivity, it helps them minimize the problems caused by the lack of technical or behavioral competencies. The employee performance appraisal systems are not a tool to scrutinize the employees, but it is a comprehensive framework which lifts up the performance of the employee, increases employee engagements, and over the time strengthen their technical and behavioral competencies.

A good employee performance appraisal system can have massive impact on a business’s growth and success. That is why it is important that the employee performance appraisal system you use is fully aligned with your business needs and resonate with your unique organizational culture and priorities. Here are the key benefits of using a custom performance appraisal system:

Elevating and Enhancing Communication:

The communication is the backbone of our modern business ecosystems. All business functions should have a fraction-less and instant communication enabled in order to boost the operational efficiency. The lack of communication between employees and managers could devastate the performance and efficiency. It frustrate employees, fuel hopelessness and it kills productivity. The performance appraisal system help managers communicate the goals and objectives, and help employee understand the success criteria. Hence the employee are more motivated to progress in the right direction.

See Also: 5 Challenges to face if Performance Appraisal is not customized as per Organization’s Policies

Appreciate High Performance and Improvements:

One of the biggest concern of employees and managers is with the outdated appraisal practices is their efficacy and accuracy. A modern custom performance appraisal system help building trust and ensures the high performance is well appreciated while the areas of improvements are also noted accurately. Rightful incentive and appreciation not only boost employee morale but also encourage others to do well in the coming performance cycle. The reviews, feedbacks, and evaluation are done with a systematic framework which help employees and managers to understand what has to be improved and how, which also help raising the morale of low-performing employees.

See Also: Appraisal Methods in Performance Management System

Impactful Training and Development:

Businesses who are actively offering training and development programs tend to perform well in UAE. A custom performance appraisal system does the heavy lifting and help the HR in many processes, which also enables them to design high-impact employee training and development programs. A well-organized performance data and intuitive reporting provide a better insight and help the HR to identify the training needs. The employee performance data can be analyzed by multiple angles and can be plugged-in into various other systems to ensure the maximum impact of training and development activities. The same can also be used to convince employee to participate in those programs and help businesses make the most impact of their efforts.

See Also: The Future of Performance Appraisals: 6 Innovations and Changes [Quick Guide]

Guiding the Right Path:

Studies have shown that the biggest reason of employee quitting form a jobs in UAE is the lack of clarity of their career path. A custom performance appraisal system provides you a wealth of performance data, when this data is coupled with employee data the HR can easily identify the suitable path for the employees and guide them with their long-term goals and career path. Such guidance is crucial, it help employees boosting their morale and confidence and it gives them a sense of importance and valued. When employees are guided to a right career path with a better scope and success in future, they become more loyal and satisfied. Happy and satisfied employees always tend to give their best.

See Also: Characteristics of a Good Employee Appraisal System

Raise Employee Satisfaction:

A modern custom performance appraisal system is a great tool to maximize the employee engagements. The employee appraisal system provides a systematic approach to engage employees at various levels and decision making processes. The digital aspect increase their trust, successful training and development programs raise their loyalty and satisfaction. With transparent evaluation practices, reward and recognition programs and frequent feedbacks and interactions the employees gain more confidence and become more satisfied with their job, knowing they are important and their concerns are addressed and their voice is heard. The employee engagements can greatly reduce the employee turnover too.

See Also: Performance Appraisal System for the HR Department

Help Under-Performers:

Here in UAE business leaders and HR specialists are agreed that the under-performers are the employees who can seriously undermine the organization’s overall performance. A custom performance appraisal system helps HR to accurately identify the under-performers, closely monitor their performance and the impact of coaching and training and give them a fair chance to improve. The performance appraisal system is very much capable of identifying the reasons of poor performance which greatly help HR to address the real issues. It also help managers to provide right guidance, coaching and mentorship to encourage under-performers and to boost their morale.

See Also: Why Organizations need Performance Appraisal System in UAE

A good performance appraisal system not only align employees with the organization goals and objectives, but it also help developing and nurturing a highly productive organizational culture where the employees can improve and grow over the time.

What are the Benefits of Using a Custom Performance Appraisal System?
What are the Benefits of Using a Custom Performance Appraisal System?

How do I design a custom performance appraisal system?

Most of the time when businesses decide to adopt a custom performance management system they think it is a very sophisticated and time-consuming task. However, designing a custom performance appraisal system is not difficult at all. It is a very simple process, all you need is to consider following important aspects of performance appraisal and you can design a high-impact custom performance appraisal system:

See Also: Performance Management System: Best Practices

Understand Modern Performance Appraisal System:

The modern performance management is way too different than the traditional/annual appraisals. More than 80% of the employee, business leaders and HR experts have shown distrust form the annual appraisals, as they majorly focused on the most recent events, and progress. However, the modern performance appraisal system facilitates more frequent and even continuous performance monitoring. Another drawback of traditional appraisals is that it is very time consuming. However, the modern performance appraisal systems leverage digital technologies and software based tools. Which ensures continuous monitoring, more contextual and comprehensive data, and highly accurate reports.

See Also: The Impact of Performance Management on Organizational Culture

Set Your Goals and Objectives:

Whenever a business is acquiring a new system or implementing a solution they have clear goals and objectives, what they want to achieve with that system. Same is applicable here too, if you are designing a custom performance appraisal system you should set goals and objectives for that, it would be simply what you would want to achieve by implementing that system, such as getting better and deeper insight to employee performance, communicating the expectations, increase employee performance, driving efficiency and reducing redundant work, reducing the time, effort and cost of the appraisal process and so on. Setting up clear objectives for the system will help you maximizing the ROI as well.

See Also: 5 Performance Management Problems and How to Solve Them

Define Benchmarks and Setting up Standards:

It is important to do some research on industry standards and define benchmarks and set up your standards accordingly. It is very important to include the most effective elements and features in your custom performance appraisal system. In order to understand the impact of different strategies and features the market research is the key. Furthermore the case studies can help you understand different features of the performance appraisal system and accordingly you can vision your custom performance appraisal system. Studying market trends is equally important. That is why it is crucial to do some research and consult experts to define the scope of your system.

See Also: Linking Performance Management to Business Outcomes

Develop Metrics and Establish Success Measures:

Since you already have a clear understanding of what you would want to accomplish with your custom performance appraisal system, it is absolutely essential to setup metrics and establish clear success measures. So, you can gauge your performance against your objectives. Furthermore establishing success measure will also help you to evaluate the efficacy and impact of your custom performance appraisal system. It is not as that complicated as it may sound, let us take an example of a goal which is ‘improving employee performance’ for that your custom performance appraisal system should be able to communicate what is expected from the employees, it should have tools to measure employee performance against pre-set goals and it should have features to ensure employee alignment with goals.

See Also: How to Customize Performance Management System

Evaluate Your Current Appraisal Processes:

It is important to scrutinize your existing performance management and appraisal processes and practices. This will help you identify the areas of improvements and missing tools or features which you can include in your new custom performance appraisal system. It is also important to collect user feedback, in this case the employees, supervisors and managers are your audience. You should conduct interviews with a sample from different audience/user pools and consider their recommendation as well. The next step is to analyze that data and revisit your success measures and ensure your success measures and goals are fully aligned with the benchmarks you are planning to achieve with your new custom performance appraisal system. We are still in the planning phase so any step can be revised and adjustments can be made if needed.

See Also: The Role of Performance Management in Employee Engagement

Establish the Scope of the Project:

Above all steps are mostly part of the planning. Forming a clear scope of the project is what you will hand over to the development team and get the system done accordingly. It is important to understand that the scope of the project is a high-level technical guideline or in fact a blueprint of your custom performance appraisal system. Make sure you add enough details and also expected outcomes. This will help the development team to build the features and functionalities in your custom performance appraisal system. At this stage you can also engage IT/Technical teams to make this charter more contextual, descriptive and technically understandable for the development team.

See Also: How to Design a Modern Performance Management System?

How do I design a custom performance appraisal system?
How do I design a custom performance appraisal system?

How to Implement a Custom Performance Appraisal System?

Once you have a completed the planning phase and prepare a detailed scope of the project with all the features you need. Now is the time to appoint a custom software development team to execute the project. Remember the employee appraisal system and performance management is not just a method or strategy, but it is actually a very powerful software application which lifts the heavy load and enable the HR to effectively implement their employee appraisal and performance management strategies.

This requires a powerful software engine which can collect performance data, analyze it as per your needs, and produce intuitive reports to let the management understand the performance status and provide them administrative dashboard with required features to acquire insight and take informed decisions and then effectively implement their decisions and action plans to course correct and take measures to ensure the set-goals are achieved at the end of the performance cycle.

The software development team will follow the scope of the project document, and build that software engine for you. You can hire in-house team to build custom appraisal system for your business or you can outsource it to a well-reputed and experienced vendor who can further help you refine your system and provide required training for the system to ensure maximum impact can be created with it.

See Also: Benefits of Implementing a Modern Performance Management System

How to Implement a Custom Performance Appraisal System?
How to Implement a Custom Performance Appraisal System?

Conclusion

Businesses who are operating in Dubai, Sharjah, Abu Dhabi or any other emirate of UAE are well aware of the fact that the employee retention is one of the biggest obstacle in growth. The overall UAE market is very competitive and it is relatively easier to switch the job. In such scenario retaining good talent is quite difficult. Furthermore the markets are very competitive and the businesses have to ensure their customers are having a satisfactory experience and excellent service which is nearly impossible with your employee performing with optimum level of productivity and efficiency.

Therefore businesses tend to implement various different types of performance management and employee appraisal systems to ensure they achieve their high-level organizational goals. In order to achieve your organizational goals and strategic objectives, the employee must be aligned with your goals, satisfied with their job role, motivated, guided, trained and engaged. This all can be achieved only when you implement a systematic framework to measure and monitor your employee performance and offer them a highly transparent and fair appraisal system.

A business have two choices, either they can acquire a commercial off-the-shelf solution or they can develop a custom performance appraisal system. The bespoke solutions tend to deliver more comparing to standardized off-the-shelf solutions. In this blog we have discussed how a business can develop and highly-effective and most impactful custom performance appraisal system. If you want to learn more or if you need our help to develop a custom performance appraisal system for your business in UAE, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

See Also: Choosing a Performance Management System A Buyer’s Guide

See Also: How Performance Management Impact on Organization’s Culture?


Characteristics of a Good Employee Appraisal System

The employee appraisal is the most important aspect of performance management. Every business wants to increase its performance, with the limited resources in hand every business wants to generate more outcome with limited inputs. That is why business adopt various workforce optimization methods and implement performance management strategies to improve the outcome and minimize the operational cost. This can provide businesses with a great competitive advantage and help them grow and achieve its goals.

The employee appraisals are extremely important as it will help businesses identifying any areas of improvement by evaluating employee performance and measuring the effectiveness of the employee. The employee appraisal system is a great tool for workforce optimization and performance management it help businesses implement their performance management strategy and align employees with the mission of the business by leveraging the employee performance data and various techniques that are designed to evaluate employee performance.

Characteristics of a Good Employee Appraisal System
Characteristics of a Good Employee Appraisal System

What is Employee Appraisal System?

The employee appraisal system is a combination of tools, strategies and methodologies which are used to measure the employee performance against a pre-set goal, and employee appraisal help setting up the goals for future and provide guidance for employee development and training programs. The employee performance appraisal provides a framework for the mangers to identify the areas of improvement, highlight the causes of failure and success and from future performance strategy.

Businesses and organizations in Dubai, Sharjah, Abu Dhabi and everywhere in UAE are investing heavily in employee performance management solutions such as employee appraisal systems. We have witnessed this trend increasing since past five years. The actual reason of deploying an employee performance appraisal system is to unlock the true potential of the employees, enable them to perform at their best and achieve the highest organizational efficiency which drive growth and long term success.

See Also: The Future of Performance Appraisals: 6 Innovations and Changes [Quick Guide]

See Also: Why Organizations need Performance Appraisal System

What is Employee Appraisal System
What is Employee Appraisal System?

Here are the characteristics of a good employee appraisal system:

Employee Appraisal System: Objectives

For any employee performance management strategy the most important point is to clearly define and communicate the objectives to the employees. An employee performance appraisal system does the same. It help management clearly define objectives which aligns with the organizational high-level goals and objectives. The employee performance appraisal system provide specialized tools which help management create objectives that are well-defined, aligned with mission, easy-to-understand, achievable in timely manner, and can be communicated to the employees.

The employee can easily understand what success will look like, it help them understand what business/employer is expecting from them and what has to be done from their side to create valuable outcome. The employee appraisal system not only help making objectives quantifiable but also help managers to correlate the objectives with the employee’s skills, experience, capabilities, and resources they have along with a complete historic background of past performances which is a great way to set goals and expectations for future. The systematic approach and specialized tools of employee appraisal system increase the success rate.

See Also: Performance Appraisal System for the HR Department

See Also: 5 Challenges to face if Performance Appraisal is not customized as per Organization’s Policies

Employee Appraisal System: Objectives
Employee Appraisal System: Objectives

Employee Appraisal System: Reliability

The trust and fairness is the main driver of the performance, if the employees think that the appraisal process is not fair or if the think the employee appraisal system is not reliable they will lose morale which can kill the performance and productivity. The employee appraisal system ensures transparency and fairness in the process and help gaining employees’ trust. The reliability is the key component to introduce transparency and gain employees’ trust. The employee appraisal system is a digital tool which offer intuitive features and empower both employees and the managers.

It ensures that the performance metrics and data used for appraisal are valid, reliable and accurate. Usually the data is related to the employee’s progress toward the assigned goal, how much time it took them to accomplish the goal, and the status of the goal, all this data is stored in the system along with complete historic accomplishments of the questioned employee. The employee appraisal system can also provide contextual data which also help managers understand employees’ certain behavior and decisions they take during the performance cycle. Employees and managers trust the system when they have access to accurate and reliable data.

See Also: Modern Methods of Performance Appraisal

See Also: Employee Performance Appraisal System for Small Businesses

Employee Appraisal System: Reliability
Employee Appraisal System: Reliability

Employee Appraisal System: Standardization

Standardization is one of the most important characteristic of employee appraisal system. Obviously every business and organization is different from each other, even two businesses who operate in same domain, have same products and services and same targeted audience could have greatly different internal processes, procedures, strategies and methodologies. However, when it comes to employee appraisal the main difference occurs when the managers took two different employees to assess who belongs to a same employee set/class or category.

For example if the assessment is required for two computer programmers who work on Native Application Development within the team, the assessment process, methods and criteria should be exactly the same for both of them. In manual practices and traditional appraisal methods, the managers have too much influence on the process hence the personal bias or emotions can hamper the quality of the assessments made by the same manager. The employee appraisal system completely remove this from equation, it standardize the evaluation criteria, performance metrics.

Furthermore it provides a comprehensive framework which make employee fully aware of appraisal standards, process, and decisions hence everyone knows how their success is being evaluated. The standardization can greatly increase employee trust on the appraisal process.

See Also: Beginners’ Guide to Appraisal System

See Also: The Impact of Performance Management on Organizational Culture

Employee Appraisal System: Standardization
Employee Appraisal System: Standardization

Employee Appraisal System: Communication

The communication is the backbone of any performance optimization or workforce optimization campaign. For the employee appraisal the communication is most crucial component of the process. The employee appraisal system help businesses and organizations to enhance communication between the employees and managers using specialized tools and unconventional methods. The managers must communicate the goals, objectives, mission and vision and the criteria of appraisal to each and every individual employee. If the employee doesn’t know about the system or doesn’t have clear information about any process or step, they will lose trust form the appraisal process which can easily kill productivity.

The employee appraisal system help integrating employee feedback at various stages, especially in goal setting process. When the employee and managers have shared vision about a particular goal the employees tend to perform well and their motivations and morale raises. The employee appraisal system strengthen the communication between the managers and the employees with more frequent feedbacks, discussions and interactions which help identifying and rectifying problems that employee might be facing and also help managers to correct course in order to ensure success by the end of the appraisal cycle.

See Also: Employee Evaluation and KPIs for Better Employee Performance

Employee Appraisal System: Communication
Employee Appraisal System: Communication

Employee Appraisal System: Development

The employee development is most important aspect of any employee appraisal system. Businesses and organization always want to minimize the employee turnover rate. This is essential in order to develop a highly skilled and experienced workforce. But if your employee keep leaving the organization, then you must have to bear the additional training costs, onboarding costs, time wasted in integrating a new employee and obviously the delay in the work, sometimes when the employees from key position left they could hinder the performance of the entire team or department, especially in startups, SMEs and very specific businesses.

Every employee wants to grow, everyone wants to improve their professional skills and every single employee wants to learn new things which add value and increase their worth as an employee. However, most of the time the employees are confused about selecting a right career path and the managers too rely on guessing while selecting a career path for an employee or designing a personal development plan .However, the employee appraisal system provides in-depth understanding of the employee performance, their capabilities, skills and ability to grow.

That is why with the employee appraisal system managers can design more effective and attractive employee development plans which help them raise employee satisfaction and reduce the employee turnover.

See Also: The Role of Performance Management in Employee Engagement

Employee Appraisal System: Development
Employee Appraisal System: Development

Employee Appraisal System: Training

When it comes to training, businesses often focus on the employee training. However, the managers’ or evaluators’ training is also very important. The evaluator and managers who are conducting the appraisal should also be well-trained in principles and processes of the appraisal along with the employee appraisal system tools. The evaluators and managers should be trained and provided with sufficient knowledge which enable them to effectively design and conduct appraisals. Conducting appraisal interview is a very crucial part of employee appraisal process, the evaluator or manager must have proper training to be able to conduct those interviews. Apart from that the employee training is the core of the employee appraisal process.

Every business or organization have such employees who just need a little training or polishing in order to unlock their true potential. But the question is how to identify those employees and how to design the training programs for them. The employee appraisal system provide insight to employee behavior, it provide highly accurate employee performance data and provide a greater understanding of employee’s skills and capabilities which are essential to design effective training programs. Effective training will help businesses achieve higher productivity and it also help gaining employee trust and loyalty.

See Also: Appraisal Methods in Performance Management System

Employee Appraisal System: Training
Employee Appraisal System: Training

Conclusion

Performance management, workforce optimization, employee appraisals, training programs and various such activities are a part of any growing organization. Every business wants to generate as much outcome as possible with the limited resources and inputs. High performing teams and employees are a great asset of a business and can provide a much needed competitive advantage as well as help boosting performance, profitability and growth of the business. That is why businesses conduct employee performance appraisals. However, when it comes to employee appraisals, it is a very sophisticated and crucial process. That is why businesses in Dubai, Sharjah, Abu Dhabi and all around the UAE uses specialized tools such as employee appraisal system in order to make the appraisal process more effective and efficient.

The employee appraisal system helps setting and communicating goals and objectives, it improves communication, it increases transparency and help businesses gain employee trust and satisfaction. In this blog we have listed some key characteristics of employee appraisal system, if you want to learn more about the subject or if you want our help to design and implement and customized employee appraisal system for your business, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

See Also: Employee Performance Management Process with PMS