Employee Evaluation

An employee evaluation is a method used by managers and human resource departments to review an employee’s performance during a set period of time. An employee evaluation also provides employee feedback, identifies potential training and development, and provides a basis for promotion and pay raises.

The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. In the employee evaluation process, HR should set goals, monitor goals, provide feedback, and document feedback and progress throughout the evaluation period.

Employee evaluations are timely evaluations of worker performance, typically made by their manager or managers. These evaluations accomplish two things:

Evaluations allow the manager to review employee progress, compliment them on their accomplishments and offer helpful critiques regarding improving performance and setting new goals.

Evaluations allow workers to access honest, professional feedback, see if their standard of work is acceptable, and find out how they can improve. Employees also often come away from evaluations with new goals for the next period.

When employee evaluations do not become a symbol of stress but are indicative of forward momentum, they allow workers and their employers to collaborate on new ideas and come up with solutions to fix problems.

Employee evaluation provides clarity to employees about the employer’s wants and expectations. Also, an employee evaluation provides valuable insights to managers and employees, helping companies make decisions regarding bonuses, raises, promotions and other rewards. Finally, an employee evaluation help employers identify the best and weakest employees.

The benefits of worker evaluations include:

Helping managers and employees communicate more clearly and effectively
Clarifying both groups’ expectations for the future
Improving workers’ job satisfaction
Improving employers’ retention of quality employees
Increasing company performance and profitability
Identifying “standout” workers who may be promoted
Identifying employees who are not suited to the job and may be better off elsewhere
Assisting employees who need further training
Improving the overall culture of the company
Increasing dialogue between supervisors and workers
Providing incentives and goals for employees
Showing employees what they need to work on
Showing employers how they can help workers succeed
Showing employers where they can improve
Providing employees with honest feedback, both positive and negative

How Often Should Employee Evaluations be Done?

As a general rule, most companies conduct performance reviews every 3-6 months. However, most experts recommend you conduct performance reviews every 6-12 months. Many businesses prefer evaluations as “annual reviews” based on this routine time frame.

However, research tells us that annual reviews do little to boost employer performance based on their timeline. Asking employers and employees to remember all the different behaviors and tasks of the last calendar year is difficult, especially when the company is busy. In addition, it can be difficult to stay on top of day-to-day meetings and duties, never mind remembering what happened eight months ago.

Over the past 4-5 years, many companies have decided to change their employee reviews strategies. These progressive employers provide workers with feedback more frequently, and they have found excellent results. For example, when evaluations occur once a month, employers can focus on recent projects and events, and their memory is fresh. In addition, the conversation does not have to span an entire year; instead, the exchange can focus on specific points of accomplishment and improvement.

For employees, more frequently timed evaluations to reduce employee reviews’ stress as evaluations become more routine. Employees also enjoy discussing current projects and asking relevant questions instead of focusing on something that happened ten months ago.

Many companies experiment with evaluation frequency, trying quarterly evaluations. Some businesses settle on monthly reviews as their sweet spot, and some companies try more frequent check-ins, such as brief weekly appointments.

One thing is certain: for most businesses, it makes sense to move away from the antiquated model of annual evaluations and to try something new to connect employees with their supervisors in a productive, forward-thinking manner.

How should employers conduct employee an evaluation?

Typically, worker reviews are formal, one-on-one meetings between employees and managers. The meeting usually occurs in an office or conference room.

While the location should be private and comfortable, the time frame for an employee evaluation is more influential. As mentioned, more frequent evaluations improve the efficiency and productivity of the meetings. Businesses that have shifted to more frequent reviews in recent years report that they meet performance goals faster and that their employees react more effectively to suggestions, critiques, and affirmation.

While businesses should ensure that they have proper spaces for private, comfortable evaluations, they should also focus on establishing a schedule for evaluations. Research shows that when employees know that, for example, they must participate in a review on the first Wednesday of each month, the evaluations proceed more smoothly, and the workers have time to prepare thoughts and questions.

Overall, frequent evaluations that take less time and run on a fixed schedule create the optimal conditions for worker reviews. For example, instead of sitting down with an employee and running through the events of the last 12 months, employers can check in on current projects with relevant due dates or ask about employees’ future goals.

Frequent evaluations help supervisors and managers fix smaller problems in an ongoing manner instead of being confronted with an issue built up over an entire year. On the workers’ side, more routine evaluations enable them to ask more questions and feel more involved in the culture of the entire office.

What should be the first step to take in doing performance evaluation?

The first step for an employee evaluation is planning. During the planning stage, supervisors are assigned to set performance indicators and goals to include in the evaluation meeting and standardize evaluation forms. Managers and supervisors should take the time to collect thoughts, prepare relevant questions, and collect standardized forms before the actual employee evaluation.

Managers should keep regular notes on all employees’ performance and include specific details. For example, a supervisor might note that one worker excelled at a group presentation and stood out when public speaking. This positive observation would be an excellent detail to share with the worker. On the other hand, if a supervisor is concerned that an employee is not meeting their monthly goals, they should share that observation early on, so the employee can work on improving their output and efficiency.

When managers take diligent notes, they have material to fall back on during review meetings. However, this applies to employees too. When employees have questions about certain tasks, duties, or projects but do not have the chance to get feedback, they should make a note of these concerns. Review meetings are an excellent chance for workers to share concerns, ask questions, and gain more guidance. When managers properly answer questions, the employee feels confident going forward.

Supervisors and managers also often use metrics to measure worker performance, such as recording their sales percentage or conversion rate. The nature of these metrics depends on the job. For example, a UPS delivery worker may be evaluated based on punctuality and delivery records. At the same time, an automobile salesperson may be graded based on their sales rate per month or quarter. Ultimately, metrics should link to the business’s overall goals.

It is also important that employees understand, going in, how their managers will evaluate them. Managers should never blindside workers by showing them statistics or metrics they were unaware of. When workers understand the specific evaluation methods their supervisors use, they work harder to fulfill the goals of their employer’s values.

Many supervisors ask workers to evaluate themselves by completing a self-appraisal form before the meeting. This technique helps workers and managers determine if their individual and company goals align. When employees evaluate themselves honestly, it also helps to increase performance, as workers set benchmarks for their careers. Employee self-appraisal forms do not need to be in-depth. They can consist of 4-5 questions about performance, goals, and future improvements the worker would like to make.

Lastly, employee evaluation does not end when the feedback session closes. Employee evaluations work best when they work on a routine, so the worker and supervisor should discuss the next meeting time and the agreed-upon goals for the next time period. They should create a plan for new meetings, new milestones, and continued success.

Contact Nakase Wade

At Nakase Wade, our California business lawyers and corporate attorneys have our clients’ best interests at heart. But, sometimes, employee evaluations lead to employee disputes, and when disagreements occur, you should have a lawyer you can trust. So contact Nakase Wade today for a free consultation, and let’s keep your business running smoothly.

Most recent blogs:

How to Calculate FTE

To calculate full-time equivalent (FTE), divide an employee's scheduled hours by the employer's hours for a full-time workweek.

Weingarten Rights

Understand Weingarten Rights: the right to have a representative during investigatory interviews as protected under the NLRA. Learn how these rights empower employees and safeguard their interests.

Can you get fired for using sick time

Understand your rights under California's Sick Leave Statute, protecting employees who need to take time off due to illness. Learn how legal protections safeguard against wrongful termination for using sick leave.

Insubordination in the workplace: 7 ways to manage

Navigate the challenges of insubordination in the workplace with effective strategies for managing difficult employee behaviors and fostering a positive work environment. Learn the importance of distinguishing between disagreement and insubordination for organizational health.

Diversity, Equity, and Inclusion

Explore the importance of diversity, equity, and inclusion in today's society. Learn how these values shape better, more inclusive communities and workplaces.

Human Resources (HR): Meaning and Responsibilities

Human Resources plays a pivotal role in recruiting, training, and managing employee relations, shaping a company's workforce for success. Discover the evolving responsibilities and strategic importance of HR in modern business dynamics.

10 Alternatives to Employee of the Month Awards

Discover the limitations of traditional Employee of the Month awards and explore ten innovative alternatives. Boost morale and recognition in your workplace with these creative solutions.

Learning To Learn

Discover the essential skills for modern leaders to thrive: learning to learn, adapting to change, and mastering new capabilities. Unveil strategies for personal growth and overcoming reluctance to embrace new challenges.

Gen Z Years, Age Range, Meaning, & Characteristics

Explore the defining years, age range, and unique characteristics of Generation Z, shaped by pivotal events like the pandemic and the digital age. Uncover insights into Gen Z's diverse demographics, digital nativity, and shifting social norms.

Quid Pro Quo Sexual Harassment and Law

Explore the origin and evolution of "quid pro quo," a principle that embodies mutual exchange in legal, political, and everyday contexts. Learn how it differentiates from bribery and shapes contracts, policies, and workplace ethics.

What is Sabbatical Leave? It’s the best kept secret in HR

Unlock the power of sabbatical leave to boost employee motivation and retention in a stagnating labor market. Learn how a planned break can give your company a competitive edge in attracting top talent.

At-Will Doctrine

Explore the at-will employment doctrine's impact on job security and termination rights in the US, highlighting key legal exceptions. Understand how at-will affects both employers and employees, with insights into valid termination causes and protections.

7-Day Work Week

Discover your rights under the 7-day work week laws, including eligibility for overtime and restrictions in some states. Learn about federal and state regulations, and when to seek legal action for wage violations.

What Happens When Employers Make False Promises

A false promise happens when a employer or hiring manager makes a statement on something the company can fulfill or avoid, but cannot or does not want to follow through with. You may bring a fraudulent inducement lawsuit against the employer for false promises for the harm you have suffered.

What to do if your employer doesn’t pay you?

If your employer failed to pay you for all of your work hours, a court could award you back pay. When your employer doesn't pay you, you should consult with an employment lawyer.

What to Do At a Job Fair to Impress Employers and Get the Interview

This article provides guidelines for job seekers to follow to ensure they are successful at career fairs. There are many things you can do to improve your chances of getting hired at a job fair.

Emotional Duress: How to Avoid

Emotional duress is an extremely unpleasant emotional response from someone else's conduct or actions. You can sue for money damages for anguish, or humiliation. This is known as emotional harm or mental anguish.

California Termination Laws

In California, an employee's employment may be terminated at the will of either party. Employees who are terminated must be paid all wages due at the time of termination.

Late Paycheck Penalty

When your paycheck is late, the employer has to pay a penalty of one day's pay for each day that the paycheck is late, up to a maximum of thirty days.

How To Calm Down Before An Interview

12 simple ways on to calm your nerves before and during an interview is to use relaxation techniques. Before an interview, imagine how you would ideally want to present yourself in the interview and then visualize yourself in the interview.

How to Include a Referral in Your Cover Letter?

Your cover letter should start with mentioning the referral's name because it instantly qualifies you. A referral cover letter helps you to define the mutual contact that has referred you for the job.

Best Job Options For Someone With A Criminal Record

This article identifies jobs for someone with a criminal record; examples are: delivery service, freelance designer, truck driver, chef, etc.

What are Weingarten Rights?

Weingarten rights guarantee an employee the right to Union representation during an investigatory interview by their employer.

What Is Job Rotation: Advantages And Disadvantages

Job rotation is the practice of moving employees between roles or positions in a company. Job rotation temporarily assigns employees to other roles to teach them new skills, learn about other functions within the team, and develop relationships across the business.

What is the meaning of Pay Rate?

Pay rate is the total money a worker receives during regular working hours, excluding overtime. In order words, pay rate, also called salary rate or compensation rate, is the wage amount paid to an employee per hour, per day, or per task completed.

How can part-time or temporary work help you explore career choices?

Part-time or temporary work offers a practical way to explore exploring and understanding what career you want. Temporary work or part time work gives you the opportunity to discover your strengths, preferences, and passions without the long-term commitment required by full-time work.

Understanding Incentive Pay: Definition, Types, and Benefits Explained

Learn how different forms of incentive pay, from bonuses to commission, can drive business success and enhance workforce engagement. Discover the key benefits and best practices of implementing incentive pay strategies in your organization, essential for attracting and retaining top talent.

What Happens When You Get Audited EDD

Gain clarity on the EDD audit process with our comprehensive guide, detailing what happens when you get audited by the Employment Development Department, including steps to prepare and respond effectively." "Navigate the complexities of an EDD audit smoothly with our expert insights, exploring the implications, documentation requirements, and key strategies to manage the auditing process efficiently and confidently.

What is FMLA Intermittent Leave of Absence?

An employee uses their 12 weeks of unpaid leave intermittently under FMLA Intermittent leave, taking it off and on, unlike continuous family medical leave or a reduced work schedule. FMLA leave can be taken intermittently by employees – in separate blocks of time for a single qualifying reason – or on a reduced leave schedule, which involves reducing the employee's usual weekly or daily work schedule, when it is medically necessary.

What is a statutory employee?

A statutory employee is a salesperson, either traveling full-time or based in a city, who represents you and submits orders from wholesalers, retailers, contractors, or operators of establishments such as hotels and restaurants. The merchandise sold should be for resale, or the supplies should be for use in the buyer's business operation. For you, the principal business activity performed must be the salesperson's work.