Managment

June 25, 2006

Evaluating Employee Performance: Tips and Pitfalls

by Jennifer Brown Shaw

Many employers evaluate their employees’

performance at some point during the employment relationship, such as annually or

at the conclusion of an introductory period.

Often, however, these employers conduct

performance reviews as a matter of course

without knowing why it is important to do

so. Some supervisors and managers also are

unaware of legal issues associated with conducting performance evaluations thoroughly

and accurately.

Why Are Performance Evaluations

Important?

Improving employees’ performance is the

primary reason for conducting performance

evaluations. Most employees want to understand where they are succeeding in their

jobs and where their performance could be

improved. Providing employees with regular

feedback allows them to enhance their demonstrated skills and improve in areas where

needed. It also increases productivity.

Another important reason for conducting

formal evaluations is to create a written record of an employee’s performance. When a

personnel decision must be made -- whether

positive or negative -- it is important to have

a written record of the employee’s performance to substantiate the action taken.

Documenting good performance justifies

favorable action if challenged by another

employee who does not receive the same

benefit. Similarly, if a disgruntled employee sues or files an agency charge, written

performance reviews, if done properly, can

provide crucial evidence for the employer,

particularly when the dispute is performance-related.

To be effective, performance evaluations

should include the following: (1) an evaluation of factors relevant to the performance

of the job; (2) an objective, honest, and

accurate description of the performance

that pinpoints specific facts and behavioral

examples; and (3) the identification of

performance or developmental goals that

are specific, measurable, and...