Employee performance appraisal has become an essential part of the process as companies strive to achieve growth and success. It helps organizations identify the strengths and weaknesses of employees and design programs to help them improve their skills and work more efficiently. However, bias can seep into the performance appraisal process and impact employee evaluation.
Therefore, HR teams need to understand the types of bias and how to mitigate them in their workplaces.
What is bias?
Bias in performance appraisal occurs when the performance assessment is influenced by factors other than the employee's actual performance.
These factors include gender, race, or personal relationships and can lead to inaccurate feedback, unfair treatment, and demotivation of employees.
Types of Bias in Performance Appraisal
- Similarity Bias: When the appraiser favours employees who are similar to themselves in terms of gender, race, age, or other characteristics.
- Contrast Bias: When performance is rated based on the comparison with the performance of other employees rather than their merit.
- Recency Bias: When an employee's performance gets evaluated based on recent events or performance rather than considering the entire performance period.
- Halo/Horn Effect: When an individual forms an overall impression of an employee based on a single trait or performance aspect, either positive or negative, influencing their evaluation of other aspects.
- Attribution Bias: When the manager attributes an employee's performance to factors outside their control, such as luck or the work environment, rather than their skills or efforts.
Impact of Bias on Employee Evaluation
Bias in performance appraisal can negatively impact employee evaluation, which can lead to demotivation, low job satisfaction, and high turnover rates. Employees may feel that their performance is not being evaluated fairly and their efforts are not recognized or appreciated.
Furthermore, biased performance appraisal can lead to the loss of talented employees who seek employment elsewhere.
Mitigating Bias in Performance Appraisal
To mitigate bias in performance appraisal, organizations can take several steps, including:
- Standardizing Performance Evaluation: Ensure that employees are evaluated based on the same standards and that factors outside their performance do not influence the appraisal.
- Providing Training: Training appraisers on recognising and avoiding bias in performance appraisal can help them evaluate employees objectively and fairly.
- Conducting Regular Evaluations: Recency bias can be eliminated through regular evaluations and feedback sessions. As a result, the employee's performance is evaluated over an extended period.
- Using Multiple Evaluators: Use multiple evaluators to assess an employee's performance. This can reduce the impact of a single individual's biases and provide a more accurate and objective evaluation.
Bias in performance appraisal is a serious issue that can negatively impact employee evaluation and lead to demotivation, low job satisfaction, and high turnover rates. Therefore, you need to understand the types of bias to learn how they can be mitigated in your workplace. Organizations can ensure that their performance appraisal process is fair, accurate, and objective by standardizing performance evaluation, providing training to appraisers, conducting regular evaluations, and using multiple evaluators.