Evaluate Employee Performance | 4 mins read

How to Properly Evaluate Employee Performance

how to properly evaluate employee performance
Dakota Sheetz

By Dakota Sheetz

What to Measure in Employee Performance Reviews

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As an employer or manager, there are three main components during the performance review process that must be addressed. They are-

  1. Effectiveness
  2. Goals and Objectives
  3. Improvements

This can be a bit confusing, so let's dig in a bit.

Measuring effectiveness through performance metrics has long been difficult for managers and others. They think that effectiveness simply comes down to productivity. For instance, if you're running a restaurant, you might look at the number of tables someone serves each shift as a measure of how effective that person is.

However, you need to move past simple productivity and analyze quality, as well. Someone who serves the most tables might also have the most unresolved complaints. It's clear such a person is not effective. Keep that in mind when creating annual performance reviews.

Meeting Goals and Objectives
Employers and employees must work together in the decision making process when setting goals and objectives. Having employees help set goals gives them a sense of agency outside management objectives and keeps them engaged. Then, once set, you can measure the goals during the performance review.

Learning and Improving
Typically, the employees with the best job performance are those who are constantly learning and improving. Employees should be active participants in training and be willing to take the initiative to improve their performance goals based on what they have learned.

By constantly improving, employees bring more value to the workplace and help to increase performance standards contributing to long term business growth.

How to Conduct an Effective Performance Review

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Managers, owners, supervisors, and other leaders are often tasks with conducting performance reviews. These reviews are typically done once a year and provide important information to the employee and the company. Reviews must be conducted properly to be effective. Go over some ways to conduct an effective performance review.

Be Prepared
Employers and supervisors should prepare for annual performance reviews throughout the year by taking notes on employee performance as much as possible.

This will make it easier for the employer to create a proper review. Also, by taking notes, the employer or supervisor can offer specific examples to back up the information in the review.

Be Direct
No one wants to hurt an employee's feelings. Still, employers need to be direct when going through a performance review. That's not the same as being mean. Instead, it's honest. When employees know their weak areas, they're able to fix them. Thus, being direct and honest is doing the employee a favor.

Don't Compare Employees to Others
Comparing employee performance standards will create rivalries in the workplace. To ensure a positive performance management process never mention another employee during a review. Doing so could contribute to the development of a hostile work environment.

Use a Form
While some companies provide informal reviews, that's a recipe for disaster. Instead, use an evaluation form so everyone will be judged on the same factors. This evaluation form should be based on the metrics you've selected to evaluate the employees.

By using the same metrics across the board, it will be much easier to see who is performing well and who is falling behind. Then, you can use training to bring the underperforming employees up to speed.

How to Write a Performance Review

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Follow some tips to write an effective performance review. Over time, these tips will become second nature, and writing performance reviews will be easy.

Start at the Beginning of the Person's Employment
Open by mentioning the employee's start date and the way he or she has changed since that time. For instance, the employee might have had trouble upselling at the beginning of employment. You can mention that, and then discuss show he or she has begun to master that skill over the months or years.

Go Over the Goals
You should also include the employee's goals in the performance review. Use metrics to evaluate the goals. For instance, you might notice that an employee is 70 percent more efficient or has gone to 50 percent more training courses since setting the goals.

Use Tangible Examples
The review should also include tangible examples that highlight the information. Examples provide clarity and proof that the employer isn't picking on the employee.

Wrap It Up on a Positive Note
Always end reviews on a positive note. Employees should leave the meeting with actionable steps they can take to meet goals. They should also feel encouraged and capable of meeting their goals. When a review is over, employees should feel like they have an ally to help them succeed.

Help Employees Succeed with Performance Evaluations

Performance evaluations are an excellent opportunity for you to help your employees succeed. First, you need to measure the right metrics. You should measure metrics that allow you to identify employees-

  • Effectiveness
  • Ability to Meet Goals and Objectives
  • Desire for Improvement

Measuring metrics isn't enough. You also must make sure you conduct an effective performance review. You can accomplish this by-

  • Being prepared and direct.
  • Avoiding making comparisons.
  • Using a form that includes key metrics.

Writing out the performance review is also critical. When writing a performance review, follow the best practices, including-

  • Starting at the beginning of the person's employment.
  • Going over goals.
  • Including tangible examples.
  • Wrapping it up on a positive note.

With these tips in your arsenal, you'll create effective performance reviews that will help you with your workplace.