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What is the Importance of Performance Evaluation Models?

Have you ever conduct a performance evaluation at your company? Which model did you choose and why? With the evolution of people management practices, the ways in which employees are evaluat have chang significantly.

The market demands more agility, transparency and precision, and it is essential that companies adopt evaluation models align with new work nes.

In this article, we will present the performance evaluation models most us in Brazilian companies, according to the HR Trends 2025 survey, carri out by Koru in partnership with Flash with more than 100 industry leaders.

We will also show how these practices can impact employee performance and motivation.

Performance evaluation models are essential tools for the growth of companies, as they allow a detail analysis of the work of employees, promoting not only the recognition of their skills, but also directing them towards continuous development.

A well-structur assessment can increase employee engagement, improve internal communication, and align organizational goals with individual expectations.

According to the article “Performance Reviews That Actually Motivate Employees”, publish by Harvard Business Review, the format of the performance evaluation has a direct impact on employees’ perceptions of fairness and motivation.

Research has found that narrative-bas assessments, which provide detail and contextualiz feback, are more effective at engaging employees because they offer a deeper understanding of their strengths and areas for improvement.

Purely numerical models, on the other hand, tend to be seen as more arbitrary and can harm employee motivation, especially when they are not accompani by a clear and constructive explanation.

Performance evaluation models most us in Brazilian companies

Brazilian companies are increasingly opting for agile and continuous approaches to performance assessment. The HR Trends 2025 study shows that models that emphasize personalization and the search for more effective and motivating results are gaining prominence in the corporate scenario.

In the case of evaluation models, the question was: Which performance evaluation models are most relevant? and leaders could select more than one option:

Find out in detail what they are below:

1 – Competency-Bas Assessment

One of the most popular models is  specific database by industry competency-bas assessment, adopt by 46.3% of Brazilian companies.

This model seeks to evaluate the employee’s performance bas on the specific skills necessary for success in the role.

It stands out for offering a detail analysis of employee behavior and skills, facilitating the identification of gaps and development opportunities.

Furthermore, the focus on skills allows for spam data  an assessment that is more align with the company’s strategic nes.

2 – Continuous Feback

Secondly, we have continuous feback, which is adopt by 43.9% of companies.

This model has proven to be an increasingly effective approach to promoting constant and transparent communication between leaders and employees.

Rather than waiting for an annual review, continuous feback allows employees to receive regular guidance on their performance, enabling real-time adjustments to attitudes and behaviors.

This model contributes to a culture of continuous improvement, strengthening the relationship between teams and leaders.

3 – 360º Assessment

The 360º assessment ti with OKRs, being us by 39% of the companies interview.

The objective of the first is to offer a more complete and multifacet view of employee performance.

This model is especially effective in collaborative environments, where interaction between different areas of the organization is essential.

By integrating different perspectives,  what is a website’s bounce rate? the 360º assessment provides balanc insights into strengths and areas that ne development.

4 – OKRs (Objectives and Key Results)

OKRs are adopt by 39% of Brazilian companies as a tool to align individual objectives with organizational objectives.

Through clear and measurable goals, OKRs facilitate performance monitoring and employee engagement with the company’s results.

This model is particularly suitable for companies focus on long-term goals, looking to drive performance in an align and measurable way.

5 – Boxes

The evaluation model bas on performance and potential matrices, such as the Nine Box matrix, is adopt by 29.3% of Brazilian companies. This model allows a visual analysis of employees’ skills and potential, facilitating decisions on development and succession.

6 – Traditional Annual Review

 

7 – Career Drivers

The assessment of employees’ potential and career aspirations, known as career drivers, is adopt by 13.4% of companies. 

Master assessment models with the HR Trends 2025 ebook

Performance evaluation models are constantly evolving, and understanding the latest trends can be key to leading high-performance teams.

 

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