In any company or organization, there’s a whole team of employees working under a manager or a supervisor where each individual has something unique to offer and bring to the table.

With so many people reporting to you and working on different things, it can become quite hard for managers to keep track of their daily performance and productivity levels.

That’s where employee evaluations come into the picture.

Also known as performance reviews, this is an excellent tool to conduct a formal assessment through which managers can evaluate an employee’s performance over time. Evaluations present a wonderful opportunity for managers to assess each employee’s accomplishments, progress, praise their achievements, provide feedback, examine their growth potential and set goals for the future to achieve the objectives of the company.

A performance review is a part of the whole performance management process which is conducted either once or twice a year. This evaluation tool isn’t just helpful for managers, but it also helps employees in a way that it gives them a chance to self-evaluate, raise their concerns, and discuss all their strengths, weaknesses, and goals.

Benefits of Employee Evaluations

When done right and conducted in the manner in which they are intended, employee evaluations can bring about a plethora of benefits for both the employees and managers.

They:

• Help increase job motivation and satisfaction
• Help managers identify areas of the business that can potentially be improved
• Boost morale and teamwork
• Increase productivity and performance
• Improve overall company culture
• Help managers identify candidates for promotion
• Improve communication between managers and employees
• Help provide honest feedback to employees
• Resolve issues and grievances
• Give employees a chance to discuss possible issues they might be facing
• Increase employee engagement
• Evaluate team members’ performance

How Employee Evaluations Boost Employee Success and Performance

An employee performance evaluation is such an integral part of the performance management process not only because it allows managers and employers to evaluate employee performance but also because they help boost overall employee performance and success.

They do this by:

• Providing employees clarity and understanding of the goals and objectives they have to achieve.
• Increasing employee accountability.
• Boosting their motivation by making them want to try harder.
• Fine-tuning organizational performance.
• Ensuring a continuous feedback and communication system.
• Identifying areas of strength and weakness for the employees to better understand where they need to put in more effort.

Important Performance Review Questions Answered

What should I expect in my first performance review as a manager?

In your first performance as a manager, you should expect to begin one-on-one sessions with each of your employees and walk them through their overall performance, future goals and objectives, and provide honest feedback. It might be confusing at first, but you will eventually get the hang of it.

What is the point of a performance review?

The ultimate point of a performance review is to help a manager provide useful feedback about employee performance, engage in productive two-way communication, pave the way towards better working relationships, and discuss each employee’s professional growth and development.

What happens during a performance review?

The manager usually begins by discussing the purpose of the performance review followed by going over the employee’s previous performance, future goals and objectives, concerns, issues, strengths and weaknesses. They also fill an employee evaluation form in order to document everything discussed in the meeting.

Are performance reviews effective?

Yes, performance reviews are indeed very effective considering how they offer clarity in terms of what the employee is doing and performing and what’s expected of them work-wise. Furthermore, these annual evaluations also establish healthy communication between employees and managers in which they can discuss important work-related matters.

Are performance reviews mandatory?

No, performance appraisals aren’t mandatory, and the decision to conduct one eventually comes down to the respective organization or company and how it sees fit. They aren’t strictly required by the law, and it’s possible that some employers don’t feel the need to have a formal performance management system in place.

Can I give a performance review remotely?

Yes, you can give a performance appraisal remotely by using various online tools such as Zoom and Skype. It’s a good idea to do a one-on-one session through a video tool because it helps conduct effective and interactive evaluations where both the employee and manager can engage in two-way communication.

Do performance reviews motivate employees?

Yes, performance reviews have greatly been shown to motivate employees because they help identify the need for improvement, determine individual employee efficiency, and push them to work harder. The fact that they set particular goals and objectives and achieve clarity in terms of work performance is exactly why it’s such an excellent motivational tool.

Should performance reviews be tied to compensation?

No, performance reviews shouldn’t be tied to compensation, and both should be treated separately. The main reason here is that employees work really hard under extreme and tough market conditions. If the top performers are only compensated during employee evaluations, it is likely to result in disappointment and demotivation among the other employees. Annual reviews are an opportunity to evaluate employees based on performance standards.

What should I say at the start of a performance review?

There are many things one can say at the start of an employee performance review. For instance, you can start by exchanging pleasantries and asking the employee how they are doing or explaining the purpose of the performance review meeting or beginning by providing a summary of the employee’s overall performance and then move on to the details.

What should you not say during a performance review?

There are many things you shouldn’t say during a performance review, such as criticizing without giving an example, comparing an employee with others, false appreciations and praises, raising their hopes of a promotion or increase in salary, making a blanket statement by using words like always and never, to name a few.

How do you answer a performance review question?

The best way to answer a performance review question is, to be honest and transparent without any personal bias. One’s tone should be polite, motivational, and encouraging without patronizing them or making them conscious in any way. One should also be civil to engage better communication between both parties.

What type of goals should I include for employees?

There are a number of goals to include in a performance review for employees where some of the most important ones are: increase punctuality, foster leadership, complete tasks on time, boost complex problem solving, improve work quality, request and use feedback, take initiatives and achieve organizational values and objectives.

What makes a great performance review?

There are three main qualities that make a great performance review, which include: developmental, achievement-oriented, fair and accurate. Other than that, there are factors like manager preparation, feedback, performance rating, constructive feedback, two-way conversations, and timeliness that play an important role as well.

What is a 360-degree feedback review?

360-degree feedback is a process or system in which confidential feedback is given to employees, which is collected from their supervisor, subordinates and colleagues. The purpose of this developmental tool is to help each individual employee identify their weaknesses, strengths and other such insights in terms of their work and performance. A key part of this review is to create an effective employee evaluation.

What is the most important part of the performance review process?

The most important aspect of the annual performance review process is the communication that takes place between the manager and the employee. It’s supposed to be a two-way process where both the manager and the employee voice their concerns, and each part actively listens to the other. Setting the right expectations is also another fundamental aspect of this process.

How should I deliver constructive feedback?

There are many ways to deliver constructive feedback during employee evaluations, such as being clear about what you wish to achieve through it, giving it face to face, being specific about issues and not giving blanket statements, not being personal, and offering solutions plus doable steps to the employee.

How do I address a combative employee during a performance review?

The best tips for addressing a combative employee is to critique their behavior and not themselves, listening to what they have to say, giving clear directions, working together towards viable solutions, writing down key expectations, not being personal, getting to the root of the problem, and most importantly, staying professional above everything else.

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Performance evaluations are a very important, and not to mention, a highly useful assessment tool that aids managers in keeping track of the overall performance of their employees. The employee evaluation process isn’t just for HR professionals! In many cases, they help get the most out of your employees and motivate them to do their best.

The evaluation process can help you identify areas of improvement, evaluate job performance, and provide positive feedback to individual employees. Annual performance reviews, combined with feedback on a regular basis, help improve an employee’s performance. A commitment to an open discussion and providing specific examples create a powerful two-way conversation for better results and improved employee morale.

As a manager, you must be thorough with every performance review that you conduct and maintain an unbiased, professional and encouraging approach throughout. The performance review questions answered above will help you understand the basics of these evaluations and also give you ideas of what to expect and how to go about them if it’s your first time.