Name a common method to assess employee skills.

Skills assessments or competency tests are a systematic way to evaluate an employee's abilities and knowledge related to their specific job role or required competencies. These assessments are often designed to measure technical skills, problem-solving capabilities, critical thinking, and practical knowledge that employees must possess to perform effectively in their positions.

By utilizing skills assessments, organizations can identify both strengths and areas for improvement within their workforce. This method provides objective data that can guide training and development initiatives, ensuring that employees have the necessary qualifications to fulfill their roles. Moreover, competency tests can also help in recruitment processes, ensuring that candidates have the requisite skills before being hired.

In contrast, while annual appraisals, manager evaluations, and peer reviews contribute valuable insights into an employee’s performance and behavior, they often incorporate subjective interpretations and may not focus specifically on the measurement of specific skills or competencies. Thus, they serve a different purpose in the overall assessment of employee capabilities.