Disclaimer: Employee evaluations are extremely sensitive in nature and are subject to numerous federal laws and guidelines. This article is intended for educational purposes only and is not to be taken as legal advice.
Employee evaluations and reviews are terrific tools for providing formal feedback regarding on-the-job performance. When implemented properly, evaluations and reviews can help turn average employees into excellent employees by pinpointing performance areas that need improvement. Furthermore, evaluations can help identify the weakest organizational members as candidates for possible termination. Here are the basic steps involved in conducting employee evaluations and reviews.
- Decide what to evaluate. The first step in measuring employee performance is to determine which criteria you will evaluate. Objective criteria--those that deal with quantifiable results such as the number of sales made in a month--are the easiest to measure, but often do not tell the whole story. A salesperson that closes the most deals month after month but also generates the most complaints from customers may not be as valuable to the company as you think. Therefore, a thorough employee evaluation should also measure behavioral criteria, such as attention to customer service and adherence to corporate polices, whenever applicable.
- Decide when to evaluate. In order for evaluations to be more meaningful and effective, you should conduct them at regular intervals. Many human resources departments follow an annual system whereby reviews are performed yearly on the date of an employee's anniversary with the company. Depending on the nature of your organization, however, you might find it advantageous to evaluate employees more frequently than that. For example, a firm that relies heavily on high sales volume would probably benefit from conducting quarterly evaluations to ensure that employees are meeting or exceeding minimum quotas.
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Author: J. Eguchi