How to Design a Performance Evaluation System
A performance evaluation system for your staff can help them know what to expect. The evaluation process provides feedback that enables them to recognize their strengths and weaknesses while developing a plan with management to meet their individual and company goals.
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Instructions
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Create a specific description for each job and department that includes both individual and department goals. In addition, the company as a whole should have set standards for conduct and performance. These guidelines should be provided to each employee and signed on an annual basis to ensure everyone is aware of their specific responsibilities and duties.
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Design an evaluation form. The evaluation form used by managers should have some basic components such as attendance, adherence to company policies and overall work performance. Beyond that, each department may have evaluation forms that are developed based on the goals of that department. While this can be taken to a job level, most businesses will find that evaluation forms by department are specific enough to provide feedback.
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Set an evaluation schedule. Many businesses will evaluate employees after their first 90 days on the job or 90 days after a transfer or promotion. After that, evaluations routinely occur on an annual basis. In some cases, usually when there is improvement needed, evaluations may need to occur on a more frequent time schedule, such as every quarter.
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Train managers on how to use the evaluation system. Encourage them to thoroughly complete all aspects of the form and include examples of both strengths and weaknesses of each employee. Include practice sessions where the managers can be evaluated on their effectiveness in providing feedback to employees. Evaluation sessions can be a productive part of the business cycle if done in the correct manner by encouraging the employee rather than berating them. Devise a set of standard guidelines for evaluating employees in order to help avoid legal issues.
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Implement a 360-degree evaluation where all employees are evaluated by their manager, their peers and their subordinates. Each group of people will have different experiences in working with the employee and may offer insight that a person in another group would otherwise miss. This evaluation can be conducted on the same form and delivered to the manager a few days before the manager's evaluation.
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Tips & Warnings
Use employee feedback in devising the evaluation form.
