Effective organizational performance evaluation is crucial for driving growth and maximizing employee potential. However, traditional performance appraisal methods often fall short in providing an objective and comprehensive assessment of employees' skills. These methods primarily focus on predefined targets rather than individual capabilities, rendering them inherently biased and retrospective in nature.

Performance reviews primarily identify performance gaps based on predetermined goals within a specific timeframe, lacking a forward-looking approach. Regrettably, this approach fails to assess employees' potential or effectively foster skill development. Instead, it confines evaluations solely to the achievement of predefined goals. Compounding the issue, organizations rarely establish goals centred around employee skill enhancement, and even when they do, they encounter difficulties in measuring progress.

To address these challenges, top organizations have been adopting competency-based assessment to drive skills and performance in the workplace.