Interest in Personnel Evaluation Systems Exists, Yet About 80% Have 'No Plans': The Real Reason Small and Medium-Sized Enterprises Are Hesitating
I think a personnel evaluation system is necessary. But it's not moving forward.
The other day, I saw the results of a survey for SME executives published by the personnel system design service 'FirstHR'.
Looking at the content, I saw the faces of many of my client companies reflected in it.
According to the survey, among companies with 10 to 50 full-time employees, 44.6% responded that they 'do not have a personnel evaluation system.' Even more noteworthy is that despite many executives being interested in a personnel evaluation system, about 80% of them responded that the 'timing for introduction is undecided or there are no plans.'
In other words,
'I feel the necessity'
'I am also interested'
This means there are a great many companies that still cannot move forward.
The biggest barrier is 'not knowing how to create evaluation criteria'
In the survey, the most common response regarding the hurdles to introducing a personnel evaluation system was,
'I don't know how to create evaluation criteria that suit my company'
The response rate reached 31.0%.
As a labor and social security attorney, I receive consultations from many small and medium-sized enterprises, and I hear this concern very often.
Executives are all
'We can't create a system like a large corporation'
'I don't know what to evaluate'
'If I evaluate, it seems like it will cause dissatisfaction'
'Will managers be able to evaluate?'
'Won't employees quit?'
They harbor these anxieties.
And before they know it,
'I'm busy, so maybe next time'
'After the company grows a little more'
It becomes this, and they end up leaving it untouched for years.
You must not mistake the purpose of a personnel evaluation system
When people talk about a personnel evaluation system,
・To decide bonuses
・To decide salary increases
・To compare employees
It is often thought that way.
Of course, that is one role, but the original purpose lies in 'nurturing people'.
Having an evaluation system conveys to employees 'what the company values'.
For example,
・Customer service
・Teamwork
・Improvement suggestions
・Reporting, communicating, and consulting
・A challenging attitude
If you include items like these in the evaluation, employees will naturally become conscious of those behaviors.
An evaluation system is not just an assessment system, but a mechanism for the company and employees to nurture talent while engaging in dialogue.
Small and medium-sized enterprises should not aim for 'perfection'
One reason personnel evaluation systems do not progress is the attempt to create a perfect system from the start.
However, what small and medium-sized enterprises need is not a thick collection of rules.
First,
・Organize the behaviors the company values
・Create a simple evaluation sheet
・Conduct interviews twice a year
Starting with just this much is sufficient.
When you actually put it into operation,
'This item was unnecessary'
'I want to make this part more specific'
points for improvement will become visible.
A system is not something that is finished once created; it is something that is nurtured.
The first step in management that utilizes people
In training sessions and consultations, I say,
'An evaluation system is not for managing employees, but for supporting their growth'
is what I convey.
In today's era of persistent labor shortages, retention and development are just as important as recruitment.
Hardworking employees are recognized.
They understand what is expected of them.
They can feel their own growth.
Companies with such systems become attractive workplaces for those who work there.
The results of this survey show the current reality where many small and medium-sized enterprises feel the need for an evaluation system but are unable to take the first step.
That is precisely why what is important is not 'creating a perfect system,' but 'starting somewhere.'
A personnel evaluation system is not a mechanism for weeding out people.
It is an essential tool for supporting employee growth, sharing the company's philosophy and values, and realizing 'management that makes the most of people.'
If you are considering introducing one, why not take the first step toward creating an evaluation system that is unique to your company, without overthinking it?