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Employees want to know how they are performing at their jobs and where they can improve – it is this type of feedback that informs a company’s performance evaluations. When the time comes for performance evaluations to occur, it is often when you hear terms like ‘qualitative measures’ or 'qualitative evaluation’ being thrown around a lot.
As companies become increasingly data-driven, quantitative performance has understandably become the key benchmark of success in the workplace. After all, nearly every aspect of business operations — from sales figures to key performance indicators (KPIs) — can be tracked and measured for precise evaluation.
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Quantitative performance is, without a doubt, one of the best ways of reviewing an employee’s work, simply because it is completely objective. The numbers don’t lie; the feedback is black and white, and it immediately reveals how much your employees are either excelling or coming up short. This evaluation is also not subject to interpretation or personal perspective, so the recipient is much more likely to be receptive to the resulting feedback.
Qualitative performance, on the other hand, is measured by a manager’s observation — without any statistics or metrics to draw from. It focuses on soft skills like communication, teamwork and adaptability, and can be a useful benchmark for positions where job success is measurable not by hard data but by other abstract qualities.
It's even more significant during the pandemic era. And here’s why.
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Hybrid work models have become the preferred workplace arrangement for employees in the COVID-19 era, and it is here to stay, even after the pandemic. And the more it becomes the norm, organisations need to start prioritising, if they have not already done so, well-being within the employees’ life cycle at work.
According to our Page Personnel Talent Trends 2022 report, The Great X, while 54% of respondents believe mental health and well-being should play a part in employee performance measurement and appraisals, only 32% of companies have made adjustments to performance measurement and appraisals to account for the mental health and well-being of their employees.
Supporting the well-being of employees through their performance evaluations not only contributes to their overall well-being, it becomes part of the fabric of work culture. Qualitative performance evaluations take into account just that.
Now, even when you can measure performance, a standout employee usually does much more than just accomplishing individual objectives that the company sets for them. These intangible factors — to do with behaviour, attitude, showing ambition or personality traits — are what will separate your best employees from the rest.
Performance management, a key aspect of business operations, requires both quantitative and qualitative measures for a comprehensive assessment. Traditionally, performance management systems have relied heavily on quantitative data and statistical analysis for performance review.
Quantitative research enables organisations to derive objective insights from quantifiable information, while quantitative measures ensure clear, numerical insights into past performance and the potential trajectory of an employee's productivity.
However, as we delve deeper into the evolving workspace dynamics, it becomes evident that a robust performance management system needs to amalgamate both qualitative and quantitative approaches for a holistic evaluation of employee performance.
In this context, the importance of qualitative methods in performance management cannot be overstated.
According to a Harvard Business Review article, companies that effectively integrate qualitative measures into their performance management systems can better align individual employee goals with business objectives, thus driving a deeper understanding of performance indicators and catalysing the performance management revolution.
Qualitative data collection methods such as focus groups, in-depth interviews, direct observation, and review of written documents help gather insightful qualitative information that can substantially enhance the performance review process.
Qualitative researchers rely on these methods to extract rich, nuanced data that quantitative research might miss. By employing qualitative analysis techniques on this data, companies can identify patterns, uncover hidden narratives, and get a clear sense of employee engagement, thereby enhancing the quality of their performance appraisals.
Focus groups, for instance, can capture employees' subjective experiences and views, making them an invaluable source of qualitative data. Similarly, in-depth interviews can offer candid, detailed insights into an employee's work experience and professional aspirations.
Qualitative measurement, by considering variables like motivation, leadership, creativity, and adaptability, provides a comprehensive understanding of an employee’s contribution to the company.
On the other hand, quantitative measurements, often encapsulated through KPIs, financial resources management, and other performance ratings, give a more objective overview of employee productivity. However, exclusive reliance on either quantitative or qualitative evaluation measurements can present an incomplete picture of an employee's performance.
Most companies, therefore, are adopting a mixed methods approach, combining qualitative and quantitative data for a more balanced understanding of an employee's potential and achievements. For example, a performance review meeting might involve a quantitative analysis of an employee's sales figures, alongside a qualitative assessment of their interpersonal skills and creativity.
The HR departments of multinational companies are now leveraging the power of qualitative measures for continuous feedback and performance management, as suggested by various case studies. Employee engagement, initiative, and empathy are qualities that can be evaluated through qualitative methods, thus providing direct reports to managers about an individual’s performance and potential.
According to research questions put forth by qualitative researchers, companies that are serious about managing performance and achieving business goals should consider qualitative methods as part of their data collection strategy. Qualitative measures, combined with quantitative data, can provide a richer, more nuanced understanding of employee performance, leading to more effective performance management systems, and ultimately, the achievement of company goals.
Performance management is not a one-size-fits-all process. It needs to be dynamic, adaptive, and comprehensive, taking into account both qualitative and quantitative measures. By investing in qualitative measurements, companies can achieve a deeper understanding of their employees' capabilities and potential, ultimately driving performance and business success.
Effective communication is vital to an organisation’s ability to operate smoothly and be productive. The ability to articulate needs, and exchange information and ideas — whether in person or virtually — is a critical aspect of getting any job done.
All the best collaborations are the result of great communication. A company with staff who can navigate this two-way street effectively is one step closer to improved productivity and success, a more positive workplace culture and better employer branding overall.
Going above and beyond one’s job scope shows a willingness on your employee’s part to be a valuable team member. Proactive acts such as helping struggling teammates, solving problems quickly or demonstrating critical thinking are qualities that show you exactly which employees can rise above any challenge by recognising opportunities to act or take charge.
Great leaders do more than nudge profits further up the charts. There are many qualities of effective leaders that can’t be assessed using data; from thinking positively and proactively to encouraging employee growth and development.
These are the people who best personify your company culture – and can motivate and mentor your team and the rest of the workforce to surpass their own expectations. Also note that your best leaders may not even be in leadership or manager positions. As author John C Maxwell puts it: Leadership is not about titles, positions or flowcharts. It is about one life influencing another.
Related: The power of employee recognition and how it contributes to business success
Displaying empathy not only creates a safe and understanding environment for employees but also boosts morale and productivity. The impact this has on workplace relationships and performance is significant. According to famed psychologist Daniel Goleman, empathy is one of the five key components of emotional intelligence — a vital leadership skill.
Research has shown that a lack of empathy can cause employee turnover. As many as 83% of Gen Z workers would choose an employer with a strong culture of empathy over one that offers a slightly higher salary. The same percentage would also consider leaving their current organisation for a similar role at a more empathetic company. Appreciating employees who demonstrate this important quality can help immensely with retaining staff in your organisation.
Related: How to prioritise mental health in and outside the office
It’s not surprising that successful companies like Google don’t measure performance the usual way. For a start, the tech giant holds two reviews annually instead of the usual one — a comprehensive version in November and a follow-up in March or April. This format encourages continuity and progress – and doesn’t require managers to carry out a 12-month retrospective, which might not necessarily be an accurate representation of the full year’s performance.
Instead of top-down reviews, Google also encourages peer performance reviews, giving a more balanced overview of everyone’s progress while eliminating subjective biases. The multi-national tech company has even coined “Googliness'' as a metric for its staff’s passion and drive, which explores qualities such as presence and leadership, as well as problem-solving skills. Focusing on these strengths allows the firm to define clearly what its employees are doing right, and is an opportunity to recognise those who have surpassed quantitative, measurable goals.
Partly through implementing these types of strategies, Google has continued to be known for its employee satisfaction — as many as 80% of the company’s workers say they are either extremely satisfied or fairly satisfied with their job.
At American streaming platform Netflix, personality and cohesion matter as much as benchmarked success. The company’s CEO Reed Hastings famously noted that he doesn’t tolerate “brilliant jerks” because “the cost to effective teamwork is too high". Instead, Netflix aspires to develop a “Dream Team” — a group in which all of its employees are both extraordinary at what they do and are highly effective collaborators. This approach to teamwork and culture encourages the pursuit of ambitious common goals and also pushes its employees to perform at their peak while also having fun.
Event management and ticketing website Eventbrite also gives regular feedback based on non-numerical metrics. Its quarterly performance reviews are based on behaviour as well as results — thereby underlining the importance of actions to accomplishments. This encourages similar behaviour for continuous success. According to their former Head of HR Emily Couey, these reviews “help our employees feel connected to the mission of the organisation, and part of the team as a whole”. Its qualitative performance assessments are so successful in boosting workplace culture that 90% of employees at Eventbrite say it’s a great place to work, compared with 59% of employees at a typical US-based company.
A company’s performance evaluations should not solely rely on cold hard data, because the best employees do more than meet black-and-white targets. Instead, businesses should also measure qualitative performance. Ultimately, it is the employee achievements outside their job scopes — especially the intangible ones — that make the most impact, and help high performers stand head and shoulders above all others in your organisation.
Discover the latest in 2022's talent trends in our latest The Great X Report: This survey report covers what hiring professionals need to know to address talent attraction and retention for 2022. It also highlights a change of times in the hiring outlook as job candidates and employees now prioritise their well-being more than ever. Download our report to find out more.
Need support with hiring in the current competitive landscape? Talk to the recruitment specialists at Page Personnel.
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