Delivering Employee Performance Evaluations Can Be A Challenge

The purpose of employee performance evaluations is to provide positive feedback that encourages good results and that corrects less positive outcomes.

Yet typically both the manager and the employee do not like these evaluations. Why? Because performance evaluations are hard to do right and they are therefore challenging to write and deliver; and they are also challenging to listen to.

Make sure your employees understand the evaluation process, review the process with new hires during the new employee orientation process.

Your human resources issues can become more of a challenge if you and your staff don't learn how to do effective performance reviews.

Not one of us is perfect, we all need to improve.

We need to focus on doing better step-by-step; that's how you get consistent, sustained improvement. Firing employees who are performing poorly is not the right answer. Evaluating employees regularly, and developing training and development programs is a good method of developing stronger performing employees.

Before you do the evaluation, review the employee's job description and ensure that it is up-to-date and clearly identifies the job requirements. If applicable, talk about the employee's performance with other supervisors - particularly if you need to confirm your perspective of an individual's performance. If there are no other employees to talk to, call up a key customer or supplier who has contact with the employee and ask how they feel about the service they receive from the individual.

As a manager, keep your focus on recognizing the value your employee brings to their job, and how they can improve. Do not put together a shopping list of improvements. I've asked managers who write performance evaluations to limit items for improvement and/or poor performance issues to not more than 5; and preferably not more than 3.

The reason to limit the needed improvements is to ensure that employees are not overwhelmed with how poorly they are doing and how much they need to improve. It is an interesting exercise to ask both your employee and the supervisor or manager who conducted the review whether they viewed it as a positive or negative review. (Often their opinions differ.)

Sadly, I have had many managers tell me they gave positive reviews; yet when I asked their employees how they felt after the review, they told me that the review was hugely negative.

Why the opposite perspectives? Because the managers felt that the employees knew that the good comments (even if only a few of them) outweighed the areas of improvement. However the employees felt that there was so much to improve upon, according to the review, that they couldn’t be doing a very good job.

My advice to managers who write performance evaluations is to ensure that they find AT LEAST the same number of good things to say about the performance as they can find improvements to focus on – even if the employee’s performance is simply adequate, rather than good.

Reviewing sample performance evaluations are a good way to learn what to do, and what not to do in a review. Put yourself in the employee's position and visualize how you would feel receiving that review?

An excerpt from a Customer Service employee review (highlights only):

Good Performance (good should always come first)

1. A team player
2. Well liked by customers and co-workers
3. Good phone manner, handles a high volume of calls daily (the highest of all CSRS)
4. Reliable, always at work on time, can count on him/her to be there when needed. 100% attendance and on-time performance.
5. Good computer skills and knowledge

Areas for Improvement

1. Accuracy of pricing needs improvement: about 10% of orders are priced incorrectly
2. Improve processing of orders - do it right the first time (about 12% of orders are sent back due to incomplete information)
3. Develop more product knowledge in order to assist customers with their orders and alternatives

Goals

(as they relate to improvement items; there might be other business goals still to be included)

1. Reduce pricing errors - to only 1% of orders (try to slow down and check own work more closely)
2. Improve processing of orders - to less than 1% of orders with incomplete information (try to slow down and check own work more closely)
3. Spend time with the sales representative and learn more about our products' features, advantages and benefits from the customer perspective

As much as possible, goals should be measurable and they should be understood and agreed upon by both the employee and the manager. Set goals that are reasonable and achievable.

Also, ensure that the goals are related to your small business plan and strategy; this will help your employee to understand the relevance between his/her performance and business growth and results.

Allow the employee to have a voice in the evaluation. Ask him or her to write down what they think they did well for the period under review and what they think they need to improve.

Consider this to be a coaching opportunity: discuss the performance with your employee and develop a plan of action. Make sure your employee understands the key result areas for the position (from the job description).

Remember that in many businesses, performance is tied to employee compensation. Good performance may merit an increase. Poor performance will not. Employees that are motivated by money will be disappointed if they don't get the tangible recognition (a bonus or salary increase) for good performance.

Use the evaluation process as a learning opportunity for your employee and yourself. It is particularly important to do performance evaluations on a consistent and regular basis: semi-annually is good for a new employee (keep it short and focused on measurable outcomes) and annually after the employee has been with the business for one or two years.

In business, human resources are your most valuable asset.

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