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How to Evaluate Employee Performance

March 25, 2014 at 10:04 AM

Conducting regular performance evaluations is essential for a company’s human resources department and management team. Employees will also benefit from these evaluations if done properly. A business that chooses not to hold evaluation meetings on a scheduled basis is leaving their staff, managers, and HR department at a disadvantage.

Consistent Employee Evaluation

Introduce a timetable for employee evaluations, and present this information in the employee handbook. It’s common to either choose to conduct performance evaluations at the end of the calendar or fiscal year, or to conduct annual reviews on the employees’ anniversary of their hire date. Try to stick to the schedule. Every company has busy days or times of the year and sometimes has to postpone meetings to deal with other issues, but as often as possible, stick to the scheduled timeframe for conducting employee evaluations.

New employees especially benefit from a regular performance evaluation. The rate of evaluations should be highest in a staff member’s first year. Conduct an initial employee evaluation after the first month to be sure staffers have a solid understanding of their responsibilities, challenges, and the company culture.

For the first year, hold evaluations once a month for the first three months, and then once for each of the last three-quarters. Mix up performance evaluations to include an immediate supervisor at some meetings and a department head at others, but always have an HR representative present. After the first year, holding an evaluation once every six to 12 months is sufficient.

How to Use a Performance Evaluation

Approach every evaluation the same. The idea should be to acknowledge good performance with a good evaluation. Schedule pay increases to occur after a predetermined evaluation if it is positive. Encourage employees to attend meetings with ideas to improve the company in some way or how they can help contribute to their department’s goals.

Use the staff member’s quality of work, reliability, and attitude to evaluate employee performance. Always suggest areas of improvement. Listening is important too. Employees often have good ideas about how to improve many tasks.

Use poor evaluations to correct an employee’s job performance problems. Give the employee specific steps to improve. If an employee cannot, or will not, improve their performance, attitude, or attendance; place these employees on probation and eventually let them go if there is no improvement.

Keep Track of Evaluations

Use staff management software with reminders of upcoming evaluations, birthdays, or probation periods. Keep good notes of meetings, and add all the information acquired to the employees' personnel records.

A central location within the company should keep possession of all personnel records and back them up. Consult OSHA and the Department of Labor in the state the business is located to find out how long to keep employee records.



Tags: employee performance personnel records
Category: Employee Evaluations

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