Performance Evaluation Practices of Selected BPO Companies and its Effect to Employee Productivity

Abstract

The COVID-19 pandemic has sparked a debate on the usefulness of performance evaluations, with employees considering factors like work-from-home and hybrid setups as motivators. Employers aim to maximize employee productivity, and they use performance evaluations to assess performance and emphasize company goals. Ugoani (2020) supports this claim, stating that performance appraisals not only review job performance but also bring attention to the company's goals. Open communication between supervisors and employees is crucial during performance evaluations. However, resistance, lack of motivation, and unclear performance dimensions often lead to questions about performance evaluations. This study aims to determine the effectiveness of performance appraisal practices on employee productivity, as employees today prioritize work-family balance and burnout. The study found that most respondents are not satisfied with their company's performance evaluation system and do not believe it positively affects productivity. They also disagree with the communication of performance results and the effectiveness of supervisors providing feedback. They also disagree with the use of rewards like bonuses or pay raises, which do not motivate employees to work more. They also disagree with the promotion of social activities that do not improve productivity. Additionally, many respondents do not communicate negatively about their work, plan it efficiently, or actively participate in meetings and consultations. They also do not take on extra responsibilities or continuously update their skills and knowledge. The study concludes that the BPO company's performance evaluation practices significantly impact employee productivity.