How is employee performance evaluated (criteria and methods)?
Quick answer
- 1. Set clear, measurable criteria: objectives and KPIs tied to each employee's role.
- 2. Choose a suitable method: management by objectives (MBO), 360° review, competency scales or a combination.
- 3. Add regular feedback (not just an annual review), so you can correct course along the way.
- 4. Document the result in an evaluation form, as the basis for decisions (raise, promotion, development plan).
- 5. Discuss the conclusions with the employee and agree objectives for the next period.
What the law says
- The Labour Code (Law 53/2003) allows setting performance criteria and objectives, communicated to the employee on hire.
- Dismissal for professional inadequacy requires a prior evaluation, under an established procedure — the evaluation form is the evidence base.
- Evaluation criteria must be objective and non-discriminatory, under equal-treatment principles.
- Evaluation data is personal data (GDPR): keep it with role-based access and a legal basis for processing.
Practical examples
- Example: a sales team is evaluated on KPIs (target met, conversion rate), not on impressions.
- Example: for a manager, a 360° review is used, with feedback from the team, peers and superior.
- Example: for technical roles, a competency scale (from junior to expert) is applied to each key skill.
- Example: short quarterly feedback replaces the surprise of a single annual review.
Common mistakes
- Vague or subjective criteria ("good attitude"), which cannot be measured and do not survive a challenge.
- A single review per year, with no interim feedback, which lets problems accumulate.
- No documentation in a form, which weakens decisions (raise, promotion, inadequacy) in a possible dispute.
- Evaluation kept on paper or in Excel, with no history and no link to the employee record.
How 4softhr helps
- 4softhr offers a performance-review module with objectives/KPIs, competency scales and regular feedback cycles.
- Evaluation forms are linked to the employee record, so results have history and a documentary basis for decisions.
- The 360° review collects feedback from the team, peers and manager in a single flow.
- Results connect with development plans, onboarding and the org chart, in the same platform.
- Romanian-language support and alignment with the Labour Code help with fair, non-discriminatory criteria.