HR Glossary

Absolute ratings

What is an absolute rating?

An absolute rating is a performance evaluation process where a person’s performance is judged based on predefined standards or criteria, rather than compared to others. The process is solely focused on performance, behaviors, and a consistent level of meeting and exceeding expectations.

How does an absolute rating work?

In this method, HR reps or managers use a structured set of performance factors like productivity, quality of work, communication, problem-solving, teamwork, and dependability to rate employees. These ratings are based on observable behaviors, documented performance, and how well the employee aligns with the role requirements. Every employee is judged independently, so multiple employees can score highly if they all meet the standards.

What are the techniques categorized under absolute rating?

• Checklist method: 

  Uses a list of statements, and managers check the ones that describe the employee’s performance

• Essay appraisal: 

  A narrative evaluation where managers describe the employee’s strengths, contributions, and areas for improvement

• Critical incident method: 

  Keeps records of specific instances of exceptional performance or poor performance during the performance appraisal period

• Behavioral Rating Scale (BARS) method: 

  Ranks employees based on observable behaviors associated with the corresponding rating level

• Forced-choice method: 

  Evaluator selects statements that best match the employee’s behavior to reduce bias

What are the advantages of an absolute rating?

• Allows for evaluation by job performance against established performance evaluations instead of against other employees
• Encourages fairness in teams with diverse roles
• Helps employees understand exactly what is expected from their role
• Produces detailed documentation that supports coaching, promotions, and performance decisions
• Reduces competition and creates a more collaborative environment

What are the disadvantages of an absolute rating?

• Varying evaluations depending on each manager’s judgment or interpretation of standards
• Time-consuming when methods like essays or incident logs are used
• Risk of rater bias (halo, horn, leniency, severity) if calibration is not done
• Sometimes fails to differentiate top performers if many employees meet the basic standards
• Requires well-defined criteria to ensure consistency across the organization

What is the difference between an absolute rating and a relative ranking?

In an absolute rating system, employees are evaluated based on their performance compared to established performance evaluations and individual merits. They can receive the same rating as other employees if they meet or exceed performance expectations. In relative rating approach, employees are rated or ranked based on their comparative performance to other employees. Employees are compared to each other and assigned rankings on a scale of 1 (best) to N (worst). The majority of employees are rated as performing well regardless of their ranking, while only a certain percentage of employees can be rated as having performed exceptionally well.

What are the best practices to implement absolute rating

• Set clear, measurable performance standards before the review cycle begins.
• Train managers on rating biases and consistent scoring practices.
• Use several assessments to create a complete picture of employee performance.
• Continually document employee performance, not only during appraisal.
• Provide employees with the standards used to determine ratings, so they can have transparency regarding what is expected of them.
• Calibrate departmental ratings to ensure fairness.
• Periodically review and update the performance criteria as their job roles continue to evolve.