How to Evaluate Employee Performance

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As a manager, it’s a fundamental responsibility to evaluate employee performance at work. While it seems like giving performance reviews would be reasonably simple, it’s often more challenging than managers expect. This is particularly true for those who just joined the leadership ranks, as delivering constructive criticism can be uncomfortable at first.

Fortunately, it’s possible to develop a strategy that makes handling an employee performance evaluation easier. Here’s what you need to know.

How to Evaluate an Employee Performance Example

In most cases, an employee performance evaluation should touch on a few key points. First, you want to review any past goals and assess whether the employee has reached them or if more work is required. Next, you want to discuss any accomplishments before diving into areas for improvement. Finally, you want to outline new goals that will help the employee overcome any shortcomings.

Employee Performance Example Based on a Written Assessment

“John Doe was tasked with meeting several goals during the past year, including improving attendance and enhancing their performance in relation to the output quantity key performance indicator (KPI). As of this time, attendance has risen to meet company standards and, based on John’s rate of improvement, will likely hit the output quantity KPI within the next 30 days.

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“Additionally, John undertook a major project for the company this past fall. Along with completing the work by the deadline, John managed to keep the project under budget by 10 percent, resulting in significant savings for the company.

“One area for improvement is John’s meeting preparation. During group meetings, John doesn’t always have the related data that’s pertinent to both the meeting and his role.

“For the next year, John will participate in a coaching, as well as provide a list of the data points he’ll review prior to each meeting to support a better performance.”

What Should I Write in an Employee Performance Evaluation?

Generally, a performance review should include the following:

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  • Past goals and whether the employee reached them.
  • Achievements since the last employee performance evaluation.
  • Current areas for improvement.
  • Recommendations for securing the needed improvement.

When writing the review, it’s critical to focus on data and facts. That makes the information constructive and actionable, which can lead to a better ongoing performance.

Goals and objectives help outline next steps for employees. Plus, they’re a tool for managers, allowing them to track an employee’s efforts in key areas.

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Ideally, every employee performance evaluation should include a review of past goals, including whether the worker hit the targets. Additionally, it should feature one to three new goals for the upcoming period.

How Do Managers Evaluate Employee Performance

Generally, managers evaluate employee performances by reviewing relevant KPIs relating to the employee’s efforts. Additionally, a review of any past achievements and failures is wise, ensuring the manager has the correct information to create a fair assessment.

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How Do Most Companies Evaluate Employee Performance

Companies typically rely heavily on KPIs to evaluate employee performance. This allows for a data-driven approach, which can improve accuracy and fairness. All employees are judged on the same parameters, and minimum scores for KPIs are set in advance, preventing bias from entering the equation.

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How to Answer Employee Performance Evaluation Questions

When you’re answering questions from employees about their performance evaluation, you want to use a fact-driven approach. Leaving emotions out of the equation and relying on data improve fairness and reduce bias. As a result, it can prevent employees from feeling attacked or unduly judged.

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