Everyone who has ever been involved in either giving or receiving a performance appraisal probably can remember at least one or two awkward, nerve wracking experiences. But they don’t have to be painful or unpleasant if they are approached openly and systematically.
Performance evaluations are frequently seen as a very corporate-type function. Many small business owners have told me that an escape from the relatively formal nature of the large corporation is one of the main reasons they’ve ventured out on their own. Nevertheless, they are still keenly aware of, and frequently challenged by, improving employee and business performance.
Whether in large or small companies, managers don’t particularly care for the process in terms of its time-consuming nature and most people’s perfectly natural discomfort of giving direct performance feedback. It’s easy to talk about good things, of course, but it’s the development opportunities and things like them that have become a little bit more difficult. With time and practice, however, these issues can be overcome.
Another challenge is that people tend to “wear many hats” in a small business, so it can be a little more challenging to define what the job duties are for performance purposes. Even if people are doing many different things, it is critical that businesses be able to tie their business objectives to employee performance to be successful through the effective use of performance appraisals.
What Should Be Included in Performance Evaluations?
- The business owner or manager needs to carefully consider basic objectives in terms of the general performance of the business—profit-wise, sales-wise, efficiency-wise—so that it provides a measure and it provides a basis to objectively look at an employee’s performance.
For example, a company-wide goal that can then be translated into individual goals as a part of the performance evaluation process.
- You should have a good position description initially. Job descriptions should include the major—and some minor—duties of the position, yet be flexible to allow for changes as it evolves. They should also include the knowledge, the skills and abilities required to perform a particular job and the competencies required for success.
- Employees should be given the opportunity to weigh in on how they feel about the job, their performance and how they see themselves developing in the future. This is done by having them complete the evaluation form prior to the performance appraisal meeting. Ample opportunity for feedback and two-way dialog can reduce some of the anxiety in the process.
- Last, but certainly not least, the evaluation should be accompanied by a well-planned meeting, with ample time to discuss the appraisal. Feedback and open dialogue should be encouraged by the manager not only in the meeting, but all year long.
Mistakes Commonly Made
I think sometimes there may be a sincere desire to do job performance evaluations, but it’s taken on a little bit too quickly.
For example, some employers will just hand out performance evaluation forms and turn managers loose to evaluate their employees without setting the proper basis for measurement or without providing training in how to write appraisals and deliver them to employees.
As a result, managers will tend to evaluate based on how they personally feel about the employee. It becomes “How much do I like you?” or “How much have you made me happy (or not so happy) recently?” When this happens, the employee is not receiving a true evaluation of their performance.
Another mistake is when managers provide only numerical ratings or use vague terminology when writing performance evaluations. For example, saying someone “has a wonderful attitude” versus “This person is very cooperative and assists in projects.”
Being overly praiseful in your wording in the employee performance evaluation solely to achieve a certain level of pay or a certain salary increase can also be a big problem because it doesn’t address areas where the employee may need some development.
Oftentimes, these developmental areas are left out of performance evaluations all together or they’re not given the attention they might need.
One last mistake I commonly see is managers who, although they complete performance evaluation forms, don’t actually sit down with the employee and go over it with them. This is one of the most important steps in the process, and also one of the biggest value-adds from the process. Interaction between the manager and employee is necessary so the employee can learn what they do well and also what they need some development in.
In my next Insight, I’ll list some steps employers can take to administer effective job performance evaluations.