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Alternative strategies to a ratings system could include regular feedback sessions, peer reviews, self-assessment exercises, and goal setting. Regular feedback sessions provide an opportunity for managers to discuss performance directly with employees, highlighting areas of strength and areas for improvement. Peer reviews allow employees to receive feedback from their colleagues, which can provide a different perspective on their performance. Self-assessment exercises encourage employees to reflect on their own performance and identify areas where they could improve. Goal setting involves employees setting specific, measurable, achievable, relevant, and time-bound (SMART) goals, which can help them focus on improving specific areas of their performance.
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69% of employees say they would work harder if they felt recognized. A clear ratings system will help employees see areas for improvement. Ratings can be based on both technical and soft skills. The skill list here can be easily added to or removed if need be. No matter what performance metrics you choose, it's extremely important that employees understand what each rating means and that it's fair. Studies show that 85% of employees would consider quitting if they felt they received an unfair review. It's also important to prepare a clear and consistent schedule for reviews. They should be done quarterly, monthly, or even weekly. (Slides 5-6)
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