How to evaluate employee performance

Many companies take the time to do a six month or yearly evaluation on their employees. This is a great idea to assess employee performance, set goals, and determine compensation. Employers who do a routine evaluation of employee performance reap tremendous benefits. It sets certain standards for the company and the employees:


• Expectations for employees and company. Regular feedback obtained from both.


•  Reward good work; and discuss shortfalls in performance.


•  Open communication to discuss employee performance and keeps the needs of the workforce in check.

When you are evaluating employee performance, it is a great time to address problems and find solutions for them. Having documentation of issues that have arisen with employees will help keep your company out of legal battles if that employee leaves the company on bad terms. Having that written proof before the employee leaves, goes a long way in court.

Starting the employee evaluation process to address their performance requires a few plans you need to have in place. You need to have some performance standards and goals set up so you can evaluate each employee's performance against it. Below are a few tools you can start with.

Performance standards.
Performance standards discuss what you want accomplished in a particular job and how you want your employee's to go about following that job. The performance standards you set should be applied to every employee who holds each particular job. Having performance standards in place will help the employee know what they need to live up to in their job in order to be considered for raises. Below are a few performance standards used by numerous organizations that you can follow. The performance standards should be:


• included in the job description


•  based on the position, not the present or former incumbent


•  reasonable, measurable and specific


•  subject to change as the position evolves

Of course these standards should be modified to your company and even revised from feedback of your employees. Newly created positions should have a feedback letter attached so you can judge how to improve on the employee evaluations.

Goals.
Goals are a little different from performance standards. You will need to evaluate each employee and their past performance. Then you should tailor the goals to each employee. Look at ways you can help make their job more efficient, like purchasing new software or implementing safety standards. Discussing the needs employees see will help you both decide what is reasonable.

Performance Appraisal
The employee performance appraisal helps to identify, evaluate, and develop and individual's performance. It is a motivation tool that encourages employees to have high performance levels. Some great benefits that come from performance appraisal are listed below:


• validations of hiring practices - are the right people in the right positions?


•  provision of an objective measuring tool on which compensation decisions, and promotions can be based


•  identification of training needs - individually, departmentally and organizationally


•  identification of employees who have the potential for advancement or who might be better suited in other areas of the organization

Overall, it is important that you properly evaluate each employee on an individual level instead of as a whole group.

You will find that when you start evaluating employee performance, you can pick out the weak from the strong. It will help your company to become more productive and have happy employees. Your employees will see your general interest in them and their needs. The performance evaluation process should be equitable, accurate and timely. Showing awards and recognition help average performers become strong performers. The overall goal of having a performance evaluation is to become a successful company with benefits for everyone!

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