Employee Performance Evaluation - 5 Steps to Reduce Turnover, Improve Morale and Build Trust

In today's ultra-competitive business environment thenot observed. Managers should always document and
demand for qualified talent is greater than ever. As theretain on record, the employee's performance as it
workplace continues to change, it becomes apparentrelates to both expectations and company goals.
that successful organizations are those that canThe benefits of accurate documentation are many.
attract, retain, develop, and lead a diverse workforce.Not only will the company have an accurate record of
A major driving force behind retaining good employeesboth good and bad performance, but should any legal
is maintaining high morale in the workplace. Yes, it isissues arise (discrimination, wrongful termination, unfair
important to have strong management and leadershippromotion), the documentation serves as a reference
in any organization.point to all parties involved - the facts are all there.
But, what process do fast-growth companies utilize toAlso, integrating a performance planner on the
account for performance goals, improve morale,backside of the employee performance review
develop and recognize employee achievement toserves an important purpose. It answers two big
ensure both managers and employees are performingquestions; "How am I doing?" "Where do I go from
at their best?here?" The performance planner should include
To often, front line managers do not have a formallyperformance areas where improvement is needed,
defined process which supports their company'sknowledge, skills, or abilities that must be developed to
performance management strategy. When thisresult in the improvement.
process is missing or fragmented, companies placeThere should also be an area to document
themselves at risk: conflicting expectations regardingdevelopment activities/assignments (these are the
roles and goals, lack of standardized methods andplanned activities for addressing the areas of need)
unclear communication can create significantand finally, projected implementation/completion dates.
ramifications.Verify both the manager and the employee sign and
Also, the company image, relationships between thedate days of discussion.
managers and employees, as well as the quality ofStep 5 - Organization, timing, frequency and scope
work is impacted. This can lead to a decrease inOrganization of the aforementioned documents and
employee morale and job satisfaction, which ultimatelyforms is easy. To make management of this process
impacts the long-term growth and success of theeven easier, visit your neighborhood office supply store
organization.and purchase a six-sided classification folder
This article defines a simple, yet highly-effective proven(Globe-Weis Part #PU561GRE). The folder provides
process for developing and retaining some of yourample space for all individual employee documents and
company's most important assets: your employees.forms.
Step 1 - Define the results you want to achieve byA recommended format layout of all documents is
implementing the process. Some examples would be:listed as follows:
to foster an environment of open, honestFlap 1 - Employee Performance Review and a formal
communication, to communicate both companyPerformance Planner Form
department goals and objectives, to establishFlap 2 - Performance Expectations - current and
performance standards and to create a feedbackyearly (This should be there when you hire new
loop between management and employees.employees also)
When results are documented and used as theFlap 3 - Calendar showing attendance history - yearly
framework to reference to employees, managementFlap 4 - Communication log forms
now has a clear perspective on what needs to beFlap 5 - Documentation defining company goals and
done to move forward in creating the entire process.objectives
All employees benefit because everyone is on theFlap 6 - Letters of Recognition, Awards, Certificates,
same page, and can now identify company goals andEtc.
objectives.Timing the process begins once the decision is made
Step 2 - Set company goals and objectives, andby executive management to amend its current
determine what is required by employees to achieveperformance management strategy. Once the first
these goal and objectives. Recognize, in many casesdrafts are completed, the assigned management team
the vast majority of supervisors and managers arereviews and approves or rejects all documents prior
unaware of the importance of goal setting and theto implementation.
power of goal-oriented management.Upon completing all forms, it's now time to roll out the
By defining company goals and objectives, you notnew Performance Management Plan. For newly hired
only give employees a target to identify, you create aemployees, it is recommended performance
platform for dialogue between management andexpectations, communication log forms and company
employees to observe what goals are being met, andgoals be communicated during the first few week of
what must be done to ultimately achieve all goals. Byemployment.
linking goals from executive management downDoing this will eliminate any concerns the employees
through to rank and file employees, everyone identifiesmay have about their role and job responsibilities. Once
the big picture and ultimately what must bean employee is hired and depending on the job and
accomplished to sustain the organization's growth andscope of work, employee performance reviews
profitability.should be completed at least every six months.
Step 3 - Document the performance expectations.For employees currently employed with the
Define performance expectations in a simple, easy toorganization, the new plan can be phased in with
read format that includes performance categories -scheduled semi-annual employee performance
usually no more than six major categories arereviews. With regard to the scope of implementation,
necessary. Categories may include quality and quantityonce the documents are completed they can simply
of work, attendance/punctuality, teamwork, safety andbe reproduced for distribution throughout the company.
communication. Certain categories, such as quality andDepending on the size of the organization, specific
quantity of work, must be measurable. The benefit ofperformance expectations can be modified to match
implementing measurements within expectations is thespecific criteria within different departments.
company will move one step closer to establishingRemember, the key is to master the process. Once
clearly defined standards.the process is implemented, managers can then
These measurements can be linked to departmentexplore ways to improve content. This is what
company goals, incentive pay, an existingoperating standard are all about.
compensation model and consideration of certainThe benefits of implementing this process within the
employees for promotion within the organization. Inorganization are enormous. It serves as a tool to
addition to defining formal performance expectations,effectively establish and communicate performance
create an absentee calendar and communication logstandards which will improve employee morale,
form.performance and the overall quality of an operation. It
The absentee calendar form is used to documentserves as a vehicle to reduce Human Resource
attendance and punctuality, while the communicationManagement issues (discrimination, wrongful
log form serves as the medium where communicationtermination, unfair promotion) and allows mid - level
between the manager and the employee, regardingmanagers to focus on other areas of the operation
performance, is formally documented. Consistent usewithout being bogged down with "people issues".
of both forms by management provide a means toWhen the process is implemented throughout the
document performance in real time.organization, it becomes much easier for new (and
Step 4 - Create and utilize an employee performancetransferring) managers who are assigned to take over
review form with a performance planner. Thean existing work group.
employee's performance review will give both theShould you need to see what the ideal internal
manager and the employee a snap - shot of thePerformance Expectations, Employee Communications
employee's overall performance over a specificand Follow-up Forms look like, please contact me
time-frame. What's important about the employeedirectly? Finally, following the process helps everyone
performance review is it reinforces what theidentify what's important, where the employee stands
expectations are, if they were achieved and wherein relationship to performance and what needs to be
the employee scores in relationship to his/her peers indone so everyone performs at their best.
the workgroup.After doing this with dozens of companies in North
The performance review can have either a slidingAmerica, this is what you can do to improve
points measurement or can be defined in terms ofcommunications and execute HR functions much more
outstanding, above average, average, unacceptable oreffectively.