Absolute rating is a performance appraisal process that determines and evaluates an employee's performance - depending on the company's metrics and standards. It assesses the employee's ability or potential to perform their job objectively.
They are non-biased, offer clarity, and flexibility.
An absolute rating measures performance against a fixed standard. In simpler terms, it can be scoring 85/100 on a test.
A relative rating compares performance to others. For example, when someone ranks in the top 10% of a group.
Absolute = Individual Benchmark
Relative = Comparison with Peers