Why evaluate employee performance
This is very important for early stage companies, as people who take ownership can help you move a lot faster as they can overcome challenges and remove roadblocks. Each team member must maintain an up-to-date task list that they can use to monitor their deliverables and measure their progress. So we track every project and deliverable and determine whether it is on time and on budget. Scott Gerber is the founder of the Young Entrepreneur Council YEC , an invite-only organization comprised of the world's most promising young entrepreneurs.
Ideally, this is how things would go. Scott Gerber. Starting or Growing a Business? Check out these Offerings. Liked this article? Try these:. Every role is different so the metrics used to measure employee performance will ultimately depend on the type of business the company and employees operate in.
Standard of work produced is a key indicator of performance. Are employees putting in maximum effort to ensure high-quality results? Are performance objectives being met? Quality of work provides the basis to analyse all other elements of their performance. Looking at how much employees accomplish in an average week, month or quarter, how does this match up to your expectations?
Are deadlines met, vastly improved on, or is time wasted? Are corners being cut to produce work quickly? Efficiency is the result of maximum output at least cost so this is vital to be aware of within your company. Ask yourself if you trust your employees to do all their work to a high standard and deliver it on time. Do they work independently or do you feel that you often have to step in?
Do they consistently display company values? Are they punctual and present to the expected standard? High-performing employees can be trusted with autonomy and continue to produce strong results without much supervision. Take time during this stage to ensure that you get a complete and well-rounded review of the individual's performance to provide a solid foundation for improvement plans.
As the name suggests, this method takes a look at feedback, opinions and assessments from a circle of people. This includes team members, supervisors and others, that the employee works within the company. Look for any similarities in the feedback from the different areas, as this will identify areas for further improvement.
With this method, managers and employees work together to develop performance goals and set clear deadlines for completion. When employees are involved in the process of creating their objectives, they can see how their individual goals contribute to larger company goals. This method also helps to increase engagement and motivation for the employee while making it very easy to define success and failure for the employer. Starting with strengths allows managers, but also importantly, employees themselves to say what they feel they are good at — helping to indicate where employees might like to develop further.
This method can also be a great way to find out if the employee feels that anything about the business is holding them back, or if they feel they are lacking important resources, for example.
By mapping out these different areas of performance, both the manager and employee can work together to create a plan for development. Managers or HR can set the criteria to be ranked — often including behaviours, aptitude or projects completed. In this method, the employee judges their own performance against questions set by the employer. This method is most useful when used alongside a verbal performance review. Although some employees may find it difficult to know where they stand, when you can spot the difference between what the employee thinks of their own performance, and what you think — you will find some interesting points to discuss in the meeting.
This method also helps employees to understand what the performance review will look at, which can ease any anxieties. Next, you need to take the findings from the evaluation and create an improvement plan which works to fill any opportunities or areas of development that have been presented. Start with an open and frank discussion and find out if the employee feels anything is affecting their ability to perform. Personal reasons such as an employee may be going through a time of poor mental wellbeing or experiencing issues in their personal life can also impact performance.
Nevertheless, when you do discuss challenges and areas for development, you have to be clear about any problems. Performance evaluation is one of the most powerful defenses for employers against wrongful termination charges.
Supervisors should give candid and truthful performance appraisals in a timely, consistent, and thorough manner—and keep accurate records. Demotion, termination, and other disciplinary decisions are so sensitive that managers need to deal with these issues very carefully. All employment decisions should be based on the results of performance evaluation, which is a strong tool to protect the company from lawsuits. A manager should … [Read more When setting goals, managers and employees should align individual goals to the department goal and the corporate goal to make sure everyone works together purposely toward the same objectives and strategy execution.
If employees clearly understand how their roles directly contribute to the success … [Read more