Performance Evaluations: Are they
effective?
Successful businesses recognize that
their most important asset for success is their employee
base. Unfortunately, however, employers often overlook
a crucial step in managing and strengthening that asset
– performance feedback. Performance feedback to
employees is extremely important in setting expectations,
allowing for improvements and planning for future developmental
goals.
As part of an overall Performance
Management system, employers should have an effective
employee performance evaluation and review system. Performance
reviews are much more than counseling exercises. They
are part of a bigger, more strategic picture.
Performance reviews are very effective
for two commonly known objectives:
- The documentation of unsatisfactory
performance - performance reviews have been recognized
as effective in the courts and in arbitration proceedings.
- Linking performance with pay
- compensation systems which provide for distribution
of pay increases based on performance evaluations.
However, the most critical objective
should be to improve employees’ performance. By
implementing an effective performance evaluation process,
your business can achieve a number of positives, including
higher employee productivity, better performance, and
communication. Your employees will know what is expected
of them, how to achieve certain goals, and why they
will make a real difference to the future of your business.
For performance reviews to
be effective, consider the following seven factors to
help improve employee performance:
- Implement a consistent
and relevant performance evaluation system that is
simple as possible. Deciding what to include in a
performance evaluation system can be frustrating,
but keeping the process and paperwork as simple as
possible will ensure for a successful program.
- Develop customized performance
evaluation forms to ensure that the knowledge, skills,
abilities and behavioral competencies being measured
are relevant to the job and to the company.
- Show employees the link
between their individual performance and company performance
and goals.
- Understand how legal issues
play a part in the performance review completion and
review meetings.
- Directly address employee
issues. Allow for the employee to voice his/her concerns
and provide feedback as appropriate.
- Empower employees to improve.
Assist with the planning for developmental activities
needed to ensure that the employee will improve and
succeed.
- Follow-up, follow-up, and
follow-up. Provide ongoing, continuous feedback to
the employee regarding his/her performance. Don’t
wait until the next performance review cycle.
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articles from December 2007 |
