May 19, 2021

Employee Performance Evaluations

Performance evaluations provide employees with critical feedback on their strengths and suggest areas for improvement, and also help to lay out a career path for employees. 

Listed below are some of the most commonly used performance evaluation methods.

Management By Objective – This type of evaluation sets specific objectives defined by the manager with input from the employee. This approach is intended to make employees feel personally involved in the goal-setting process and responsible for meeting those objectives. Employees are evaluated at the end of the review period as to whether they have met the objectives. This evaluation process normally places more importance on tangible goals, like sales quotas, rather than more intangible goals such as interpersonal skills or commitment.  

360-Degree Feedback – With this method, feedback from managers, peers, direct reports, higher-level supervisors and even outside vendors or customers are incorporated into the evaluation process. The employee is then provided with the anonymous results of the feedback. The idea behind this type of evaluation is to provide the employee with insight on how others perceive their work and motivate them to work harder to realize company objectives.

Ratings Scale – This is one of the most commonly used types of employee performance evaluations. Employee performance in various areas is graded on a scale. Criteria that is often evaluated in this process can include traits such as productivity, customer service, teamwork, and quality of work. Employees are then rated on a scale using numbers, letters, or statements for each of the criteria, usually moving from unsatisfactory to outstanding. This type of evaluation allows for simple comparisons between employees and can usually be completed in a relatively short amount of time.

Self-Evaluations – The self-evaluation is not necessarily used as a stand-alone approach, but as a supplement to the existing evaluation method. Employees are asked to rate their own performance against a set criteria providing managers with a view of how the employee sees their own strengths and weaknesses. It also allows the employee an opportunity to participate in the evaluation process.
Regardless of your method, conducting regular evaluations and holding conversations about performance will help your employees and teams succeed.

Sources: Quantum Workplace, “What is a Performance Review: Types of Performance Reviews” Kissflow, “6 Practical Performance Appraisal Methods for the Modern Workforce” WebPT, “5 Common Performance Review Methods”

The views and opinions expressed in the article represent the view of the author and not necessarily the official view of Clark Hill PLC. Nothing in this article constitutes professional legal advice nor is intended to be a substitute for professional legal advice.
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