Appraisal-Based Competency Performance

Competency-based appraisals help employees understand what they're doing right, and where improvement is needed.
Competency-based appraisals help employees understand what they're doing right, and where improvement is needed. (Image: Images)

Companies often use employees' appraisals to determine their job competency and evaluate performance. While employees and managers alike often dread competency-based performance appraisals, they can be beneficial to both the employees and the companies that employ them. Appraisals show what employees are doing right, where room for improvement exists and whether they deserve pay raises.


A competency-based performance appraisal identifies a position’s role in a company, as well as its core duties, day-to-day responsibilities, and the behaviors and knowledge that affect job performance in that position. A manager uses the appraisal to evaluate the employee based on how well he met those objectives during a specified period of time, usually six months or a year. Such appraisals also often evaluate soft skills required to do a job.


Appraising employees’ performance is a way for the employees to get feedback about what they’re doing right and where they could use some improvement so they can work on improving on areas of need. It’s also a way for companies to provide their employees with validation and express appreciation for a job well done, as well as determine whether training or coaching is necessary to help employees improve their performance.

How It Works

Typically, employees are required to complete a company-specific form on which they list all their duties and responsibilities, as well as any stand-out accomplishments during the period being appraised. The form then goes to a manager or supervisor who provides feedback on the employees’ overall job performance and provides a critique using a pre-established rubric. For instance, in different areas, he may rate an employee as “Needs Improvement,” “Meets Expectations” or “Exceeds Expectations.” Both the employee and supervisor then meet in person.


Helping employees improve performance ultimately improves companies’ bottom lines. However, employees can gain a lot to from such performance appraisals. Because companies routinely tie the result of these evaluations to pay, employees who receive positive performance evaluations may receive raises for jobs well done. Plus, understanding what areas need improvement can help ensure positive appraisals in the future, along with raises.

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