When it comes to performance review, there are several aspects you need to focus on, including when to conduct, how to conduct, etc. One important aspect that deserves due recognition is the use of performance rating scales. There are schools of thoughts on both sides of the discussion on using vs not using it. However, if used strategically, a performance rating scale can effectively make the employee performance review process smoother. Through this article we will cover:

• When to/ when not to use a performance rating scale
• How to select the right employee rating scale for your organization
• Common pitfalls of using a rating scale to be aware of
• Top performance rating scale questions you must use

Performance rating scale: Top use cases

While preparing your organization for a performance review, you might find yourself conflicted about whether or not you should use a rating scale. A performance rating scale is highly effective in gauging an employee’s performance from a quantitative perspective, but has limited scope when it comes to evaluating performance qualitatively. 

Therefore, we have identified the top situations and advantages of using a performance rating scale as well as when you should not be using them.

When to use a performance rating scale

You should use a performance rating scale when you need to:

• Capture quantitative evaluation of the performance to study trends over time
• Compare performance of two or more employee on similar parameters
• Focus on a particular behavior or attribute of performance and don’t want the respondents to digress
• Gauge concrete data points on performance to decide on appraisals and increments
• Eliminate the ambiguity from interpretation of subjective responses
• Get quick responses to your performance feedback

Advantages of a performance rating scale

Based on the use case above, here are a few advantages of using a performance rating scale:

• Quantitative performance analysis which is easy to comprehend
• Clear alignment of performance and compensation, leading to reinforcement of high performance
• Ability to gauge a shared understanding of performance expectations and achievements
• Ability to clearly identify areas of improvement and strengths

When not to use a performance rating scale

Despite the diverse use cases above, a performance rating scale doesn’t have universal applicability. In fact, using a rating scale in situations it doesn’t fit may lead to a poor performance review for employees. Therefore, you should refrain from using a performance rating scale when:

• The job roles and responsibilities between employees are not consistent and cannot be compared
• The role is relatively new and the expectations from performance are ambiguous
• You want to personally evaluate the performance of each employee
• You need a detailed report on the developmental areas and remedial actions for an employee
• You want to offer constructive feedback on the way forward for performance improvement

Disadvantages of a performance rating scale

Here are a few disadvantages of using a performance rating scale:

• The objective responses might be interpreted differently by different raters based on inherent biases (keep reading to learn more about these biases and how to avoid them)
• Managers may over/under rate an employee based on few perceptions
• Performance ratings might label a person without enough context, leading to low motivation and other challenges
• Focus shifts from development in performance to rationale behind the rating
• Getting a good rating becomes important over performing well

How to select a performance rating scale 

Now that you have an idea when to use a performance rating scale and the various advantages and disadvantages, you need to move to the next phase of understanding how you should select the right performance rating scale. 

Depending on the nature of responses to the scope and intent, there are several types of performance rating scales that you can choose from. In this section, we will help you understand the different types that you can explore and best practices to make the right choice. 

Types of performance rating scales

Focusing solely on performance, we will discuss the top 4 types for rating scales that you can use for different situations. 

1. The Point Scale

The point scale is one of the most commonly used employee rating scales used by organizations. It involves rating employee performance on a pre-decided scale across a spectrum of responses. It can range from a 3-point scale to a 10-point scale depending on the scope and the need. 

For a long time, the 5-point scale was the one that most organizations relied upon. While the 3-point scale gave only a macro level view, the 10-point performance rating scale became too comprehensive. Thus, the 5-point scale maintained a balance of being detailed but not overwhelming, where identifying differences between the points was difficult. 

The points on your point scale can be numbers or numerals with each number having a corresponding meaning. Alternatively, it could be words like Average, Above Average, Exceptional, etc. to indicate performance levels. 

In the most recent times, there has been a rise of the 4-point scale which focuses on eliminating the neutral or the middle option which is often seen as an easy way out that requires no further explanation. 

4-point scale example

2. The Likert Scale

Another common performance rating scale that many organizations use is the Likert scale. Like the point scale, it generally has 5 parameters on the scale. However, the difference lies in the value of the parameters. They are always written and the same for all questions. 

The five options on the Likert scale include

Strongly Disagree-Disagree-Neither Agree Nor Disagree-Agree-Strongly Agree

While the normal range is five options, it can range from 3 to 7 depending on the context and performance parameters. 

The Likert scale can be used as a matrix with statements on one side and the scale options on the other and can run like a list for performance review. An effective Likert rating scale generally has an equal number of positive and negative outcomes with a neutral option in between. 

Likert scale example

3. A scale to improve above average spread

This is a reinvention of the point scale which changes the balance of the positive versus the negative options. Generally, a point scale has an equal number of options that indicate that performance needs improvement and for a job well done. However, many organizations claim that a limited number of options on the positive side make it difficult for them to distinguish between good performers and top performers. 

In most cases, if there are 5 options, with one neutral in the center, there are only two options indicating good performance. Generally, these two options are unable to capture the performance rating for those 1-2% employees who set new expectations and a bar for performance. Invariably, their exceptional performance fails to get noticed and rewarded and is equated with the good performance of other employees.

To bridge this gap, many organizations are using a performance rating scale which increases the above average performance spread. The scale for below average performance is limited to one, which can be substantiated with qualitative feedback. On the other hand, the scale focuses on more above average performance options.

Example

4. The Frequency Scale for Interpersonal Skills

Finally, when it comes to a performance rating scale for interpersonal skills, the frequency scale is most sought after. Like most scales, it consists of a statement, followed by a few options. However, the nature and scope of the statement and options is what makes a difference. 

On the statement front, instead of directly asking whether an employee manifests a particular skill or quality, it focuses on a behavior that comes as a result of personalizing that skill. For instance, instead of inquiring if the person has good communication skills, the focus should be on behavioral aspects like display of active listening, ability to articulate thoughts, confidence of presenting in front of a group, etc. 

The options, on the other hand, seek to understand how frequently that behavior has been observed. The idea is to gauge whether the employee has been consistently displaying the desired behaviors or is there a particular pattern to it or if it has just been observed as an off chance. 

Frequency scale example

The employee starts and ends meetings on time and runs them with a concrete agenda

• Not at all
• Seldom (20% of the times)
• Sometimes (40% of the times)
• Most of the times (70% of the times)
• Always (90-100% of the times)

This question can help gauge the time management, organization and planning skills for an employee, without directly asking the question. 

When to use numbers vs words performance rating scale?

As you have seen above, your performance rating scale can have options in the form of words or numbers. However, choosing which way to go can have an impact on the overall efficacy of the performance review process. It is best to use a rating scale with words over numbers because it is:

• More explanatory as numbers can have different meanings for different raters
• More personal as being associated with a number label can be a little dehumanizing
• Better accepted as numbers are generally absolute and can sound harsh

However, you can still use the number rating scales to review performance in situations where you need an absolute rating or when there is a clear and uniform understanding of what each number represents.  

How to choose the best performance rating scale? 

Working with multiple growing organizations over the years, we have been able to identify a few tips and tricks that can help you select the right employee rating scale for your next performance review. 

1. Go for a 4 or a 5-point scale

As a growing organization, choosing a 4 or 5-point performance rating scale makes sense because, it: 

• Is neither too abstract nor too cumbersome and detail oriented
• Will ensure that while your managers have enough options to choose from to rate employee performance, they don’t get lost in the sea of options 
• Can help eliminate the risk of managers going safe with the neutral middle option, by removing the same and going for a 4-point scale with only positive and negative options

2. Choose description over number

To augment the efficacy of your performance review rating scale, choose one which provides options in words or a description over numbers to:

• Ensure that your managers are able to give constructive feedback without an absolute label
• Prevent employees from being demotivated or left with a feeling of condemnation in case they receive rating in the low half of the spectrum
• Prevent any confusion of what the numbers means, which may lead to a skewed analysis

3. Be aware of the biases

Almost all performance rating scales are vulnerable to biases both in their scope and nature as well as for the rater themselves. Thus, when you pick a rating scale, you need to be aware about the potential biases and have remedial actions in place to ensure that they don’t give you an unauthentic picture of the overall performance. We will talk about some of the common pitfalls and biases in the next section for greater clarity. 

4. Create clear differences

When you choose a performance rating scale, you need to ensure that the difference in options is very clear and not ambiguous for the raters to figure out on their own. There are several aspects to it:

• First, having one option as sometimes and the other as seldom can be difficult to differentiate between
• Second, ensure that two options are not poles apart, leaving room for several performance categories in between. For instance, you can’t have one option that never meets expectations and the other as often meets expectations. There needs to be a balanced spectrum

5. Use the right words

Next, it is very important to use the right words in the statements and options that you choose. When it comes to the options, make sure there is a clear index of what each option means, especially if it is numeric. This index must be shared with all the stakeholder, the raters, those analyzing the results as well as the employees. 

Similarly, the questions should be very specific on one performance aspect. For instance, if you combine performance on communication and punctuality, it might lead to a lot of confusion. An employee might have great communication skills, but may not be punctual and thus, addressing them in the same question will be difficult. Furthermore, even aspects within the same performance parameter like active listening and ability to present in a large group can be separate.  

Common biases in a performance rating scale

Now, let’s look at some of the common biases a performance rating scale might be vulnerable to that you need to be aware of and try to avoid to the maximum extent possible:

1. Definition bias

As discussed above as well, the definition for options can be significantly different even when they are descriptive. This is so because all of us have different notions for each term. For instance, a manager might award an exceptional rating to some of his/her employees because they have been performing consistently well and that’s how they define exceptional. On the other hand, the bar for perfectionism might be too high for another, leading to a lower incidence of being awarded exceptional. Similarly, in instances where the options talk about meets or exceeds expectations, bias on what the expectations are can set in.

How to prevent this: The easiest way to prevent the definition bias is to have very clear definitions for all options which are communicated time and again to all. 

2. Leniency bias

The leniency bias occurs when the rater tends to give a more lenient or positive rating to an employee than what the performance actually begets. This can be seen when the rating is more on the positive side. Mostly the reason is that managers don’t want to demotivate their employees with a lower rating and, thus, end up giving a higher rating, which may not be a true reflection of the performance.

How to prevent this: Leverage a performance rating scale which increases the above average spread and talks about different aspects like top performers, outstanding, etc. This will ensure that decent performance is ranged at above average while exceptional ones have a separate rating. 

3. Numeric bias

Numbers can have different meanings for different raters in a rating scale. While each number can have a different meaning, the entire spectrum can be also looked at from two lenses. For instance, on a scale of 1-10, both 1 and 10 can be perceived as the top or the bottom. 

How to prevent this: Similar to the definition bias, the numeric bias for a performance rating scale can be prevented by using a clear index which clearly illustrates how the spectrum works and a definition against each number. 

4. Centrality bias

This is a very common bias when it comes to using a performance rating scale. Here, the rater tends to select the neutral or the central option to avoid any conflict or external explanation. More often than not, poor performance needs to be substantiated with improvement actions while high performance needs to be supplemented with evidence and rewards. To avoid any such actions, some raters take the easy way out, which doesn’t help differentiating between high and low performers.

How to prevent this: The easiest way to prevent the centrality bias is to remove the center or the neutral option. As shared above, you can simply go for a 4-point scale which doesn’t have a neutral option and thus, the rater has to distinguish between high and low performers. 

If you are dealing with consistent poor performance issues within your team, this article on Performance Improvement Plan might help.

Performance rating scale questions 

Invariably, you will have a statement or a question which will become the basis of the ratings for your managers. This final section will focus on the different nuances around performance rating scale questions that you must be aware of. 

How to choose right rating scale questions

Let’s start with a basic understanding of how to choose the questions for your performance review rating scale which can help you yield the best responses. To make the right choice, you must ensure that your questions are:

• Relevant for a group of employees. This suggests that your questions should have a meaningful spread and should be able to capture diverse performance levels
• Valid for the critical parameters for your organization. Put simply, your questions should seek answers for factors that define success for your organization. Simply getting ratings on any parameters will yield no impact
• Crisp and to the point. Don’t use jargon or very fancy language. Keep the questions simple and easy to understand
• Concrete and not ambiguous. The meaning of your questions should not be left for interpretation by the rater, they should be very specific
• Supported by the right kind of options or responses. For instance, if your question/ statement is The employee takes interest in team building exercises and your options are likely, not likely, etc. it may not make a lot of sense. However, options like never, sometimes, often, always, etc. make sense 

Read 150+ performance review phrases to find a diverse set of questions and statements for your rating scale across 17 employee qualities

Common questions for different types of performance rating scales

Before we conclude, here are some examples of common questions you can use for different types of performance rating scales. These questions can help you understand which scale is most appropriate for you depending on the situation. 

Point scale

1. How well is the employee able to communicate his ideas?
2. How often does the employee own up to her mistakes?
3. How well does the employee make an effort to go out of his way to help others?

Likert scale

4. The employee takes initiative without being asked to
5. The employee pays attention to detail
6. The employee delivers all the work before deadlines

Frequency scale

7. The employee respects the opinion of others
8. The employee is able to communicate his ideas clearly in front of others
9. The employee understands the project needs effectively

Wrapping Up

While there are different views on whether or not a performance rating scale is the best tool to measure employee performance, there is no doubt about the merits it brings along. Therefore, it is critical for organizations to leverage this potential. Here’s a quick revision of everything you need to know about performance rating scales:

• You should use rating scales to get concrete data points for quantitatively driven performances or when you wish to compare performance levels
• Rating scales are easy to administer and quick to get results for
• You may want to stay away from rating scales when you want to measure progress for roles which are different or are relatively new, with no benchmarks
• You must be cognizant of the rater biases and contexts while interpreting rating scales
• You must understand the different rating scales before choosing the right one based on the number and nature of responses for your needs
• When choosing a scale, aim for 4-5 point scale, which focuses more on numbers than description, be cautious about the words you use and have clear differences between different options
• Finally, make sure all your questions are relevant, valid, crisp, clear and supported by the right options

Now that you have a comprehensive understanding about performance rating scales, you should get started with applying the same to gauge performance levels in your organization. Follow the best practices and be aware of the pitfalls to make a dent in organizational success. 

Suggested Reading

150+ performance review phrases to use in your next employee review

100+ most useful self appraisal comments 

How to address poor employee performance at work

“Coaching is unlocking a person's potential to maximize their own performance. It is helping them to learn, rather than teaching them.” - John Whitmore 

Employee coaching is the secret tool that high performing organizations use to develop and nurture talent they already have. It supports continuous  performance management by not only addressing challenges of today, but also preparing the employees to tackle what comes their way in the future. 

In this article we will discuss:

• How to provide coaching to employees at different levels of performance
• 16 tips for managers to use coaching to improve performance
• Top skills for managers to become better coaches

Importance of employee coaching

Before we discuss further about how coaching can be implemented to achieve performance improvement and how managers can support the same, let’s quickly look at a few reasons that illustrate the importance of employee coaching:

On a closer look, you will see that employee coaching not only enhances employee experience leading to greater engagement and retention, but also has direct business impact with better performance, productivity and revenue. 

Identify coaching needs for different levels of employee performance

Before we start with specific employee coaching tips, you need to understand that the same coaching approach may not work for performers across different levels in the organization. There are two sides to this understanding:

• First, coaching will be different for different vertical levels based on tenure and experience within an organization. The same employee coaching framework will not work for a fresher and for someone with 30+ years of work experience. 
• Second, coaching for high performers will be different from that for a sub-optimal performer. You can either get this understanding by looking for performance trends manually or use a tool. For example, the Performance Snapshot feature of SuperBeings helps managers with a 9 grid matrix to identify employees at different performance levels based on their performance history over time and their future potential. 

Once you have figured out different groups of performers, use this list of tips to support employee coaching at different performance levels:

1. The newbie

• Avoid micromanaging
• Give direction to ensure a culture fit
• Offer constructive feedback

2. The ones who have just started performing 

• Encourage desired behavior
• Appreciate a job well done
• Help understand the next level of responsibility

3. The ones performing well

• Help create a career trajectory
• Encourage greater responsibility
• Appreciate efforts and recognize initiative

4. The masters

• Focus on niche coaching
• Help navigate leadership journey
• Create a ripple effect by encouraging second generation coaching

5. The high performers

• Help chart out their high potential professional journey
• Encourage them to anticipate potential challenges and prepare them to deal with them
• Focus on building their leadership skills
• Present them with new challenges to innovate and use creativity
• Don’t let them off the hook because of halo effect
• Understand and expand their core motivation

5. The low performers

• Understand key challenges
• Promote avenues for continuous learning
• Involve them in creating a performance improvement plan
• Encourage them to identify right opportunities for growth
• Provide constructive feedback
• Reward incremental performance improvement 
• Read how to deal with poor performers to learn more specific tips for coaching the low performers

16 tips for managers to use employee coaching for performance improvement

When it comes to improving performance, employee coaching can help in many ways. Here are some actionable tips for you to implement easily.

1. Ask questions to enable employees to come to solutions on their own, guide the way instead of driving them to the finish line.
2. Have some questions ready in advance as an ice breaker to avoid any awkward silence
3. Refrain from jumping to solutions if the employee is taking a little time to think, offer a safe space for brainstorming
4. Promote open ended questions versus those with binary responses to encourage conversation
5. Make your phrasing empowering, instead of using terms like “you should”, say “how would you”
6. Try to make each conversation growth focused, instead of spending too much time on reflecting what has happened. Focus on the future
7. Focus on professional development, even beyond organizational goals
8. Show faith in the employee you are coaching and encourage them to believe in themselves
9. Focus on identifying performance problems for the employee and ensure they understand the same
10. Collectively with the employee, try to understand the underlying factors that can promote better performance outcomes
11. Understand common barriers to performance and categorize them as internal (specific to the employee) or external (like organizational support)
12. Reflect on your conversations to analyze when you are asking questions and when providing solutions
13. Create an action plan for long term performance goals and areas of improvement
14. Be consistent in following up the progress and address challenges that might come along the way
15. Offer constructive feedback at every step
16. Be open to feedback from the employees on what can be better

5 Must Have Coaching Skills for Managers

To undertake the practices mentioned above, managers need to have a certain set of skills that can enable them to unlock performance for their employees. Following is a list of top skills to hone and some best practices to master the same.

Skill #1: Inquisitiveness

For employee coaching, managers need to move away from providing solutions and towards asking the right questions. The questions should be powerful enough to help the employees think in a growth oriented direction.

How to become inquisitive?

• Ask meaningful questions
• Focus on open ended questions 
• Keep your questions with a positive tone — don’t start a question with “don’t you think” or the like phrases
• Have follow up questions from within the conversation

Skill #2: Active listening

While coaching is about providing guidance, it seeks to ensure that guidance and support is offered to the situation of the employee. Hence, active listening is an important skill for managers if they want to become better coaches.

‍Active listening involves hearing, understanding, reflecting on and responding to what the employee has to say. 

How to become an active listener?

• Provide your undivided attention
• Use your facial gestures and body language to indicate you are listening
• Paraphrase and summarize to ensure your listening and understanding was accurate
• Don’t interrupt to force your point of view
• Don’t jump to conclusions

Skill #3: Growth mindset

Managers who seek to excel in employee coaching need to have a growth mindset with a commitment and belief for the development and success of their employees. 

How to adopt a growth mindset?

• Align organizational priorities with growth opportunities for the employees
• Encourage employees to see challenges as opportunities
• Help them in mastering the art of reflection and learning 
• Empower team members to come up with alternative solutions to the same problems
• Facilitate autonomy and flexibility to innovate and experiment

Skill $4: Empathy

As a coach, managers will be exposed to many sensitivities of an employee that might be holding them back. In such a situation, empathy as a skill is extremely important to create a high level of comfort and confidence.

How to become empathetic?

• Check your unconscious biases
• Be open to new perspectives and experiences
• Connect with your employees on a human and emotional level instead of just transactional
• Be genuinely interested in the employee’s growth

Skill #5: Consistency 

Finally, for managers to become a highly effective coach, the skill of consistency needs to be imbibed. The intent is to ensure that your efforts are not limited to a one off instance, rather are sustainable and scalable over time. 

How to become consistent?

• Create an action plan with a follow up schedule
• Calendarize your 1:1 meetings with employees you are coaching
• Constantly motivate the employees on their performance
• Don’t be too pushy or over burdening

Wrapping Up

Drawing this article to a close, it is quite clear that employee coaching has incredible potential to skyrocket performance for any organization. However, a few things need to be kept in mind.

• Clearly distinguish between coaching and other activities like managing and feedback
• Have different coaching frameworks and approaches for different levels of performance
• Coaching works in different ways for high and low performing employees
• Managers need to hone specific skills to facilitate effective employee coaching
• Focus on the above mentioned best practices is important to leverage coaching for improving performance

If you are interested in checking out more useful resources on managing employee performance, do check this out