4 Key Components Of A Performance Evaluation

April 1, 2007
Author: Tom Perkins - Business Development Coach and Certified Personal Trainer    

Former Chairman and CEO of GE Jack Welch wrote in his autobiography that he spent about half of his time on people: recruiting talent, selecting the right people, mentoring, developing managers, dealing with under performers, and reviewing/evaluating the talent pool. Welch recognized the significance of having good employees.  "Having the most talented people in each of our businesses is the most important thing. If we don’t, we lose." 

As managers and owners, we often “do the right thing” and invest the time and energy in finding the right people for our organizations, yet tend to fall asleep at the wheel when it comes to consistently evaluating our employees on a regular basis.  Why do we cringe at the idea of providing feedback or direction?  If the process ultimately helps not only our employees improve, but assists in growing and building a successful organization shouldn’t we make the effort? 

Employee performance reviews are an essential part of any business.  It provides employees with an opportunity to receive formal feedback on how they are doing and managers with an opportunity to identify that individual’s specific strengths and weaknesses.  Without some type of formal review process, employees may never know if they are doing something wrong, how to fix it or what is expected of them. 

Each organization develops its own set of criteria and “grading” for performance reviews.  Generally, employees are evaluated on: 

Communication skills:  Do they convey their thoughts and ideas to coworkers and clients in a concise, organized and professional manner? 

Interaction:  Do they have positive and productive professional relationships with their coworkers and supervisors?  Are they respectful and courteous? 

Knowledge and skill set:  Does the employee have the necessary knowledge and skills to do their job? 

Productivity:  Does the employee consistently produce results?  Do they accomplish their goals?  Do they go beyond your expectations? 

Other items that should be discussed during a formal performance review are the employee’s accomplishments.  It is important for supervisors and managers to remember that the performance of your team reflects upon your abilities to effectively manage.  Their success is your success as well.  Take time to discuss those specific accomplishments and why they are significant. 

Another area which is often skirted is providing employees with specific feedback on how they can improve and/or grow.  Too often, the feedback from managers is vague or general.  Avoid telling an employee they need more knowledge or skill in a particular area.  Instead, provide them with information on how they can acquire that additional knowledge or skill set and provide a realistic timeframe in which they are expected to gain it. 

Finally, allow time for the employee to comment or to raise concerns that they may have about their review.  Tune in and listen to what they have to say.  You’ve had your opportunity to speak, so should they have theirs.  Their comments and/or concerns about their review should be added to the final written review and placed in their file for future reference.

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