6 ways to improve your company's performance evaluations
Performance evaluations are a crucial part of employee development within a firm, and as such, should be a key section for the Human Resources department. Here are some ways that your evaluation can be improved.
1. Before developing a performance review, the firm must check the cost effectiveness of implementing their ideas, and the opportunity cost of doing so. For example, how much would it cost to perform multiple performance reviews, if currently there is only one each year? This needs to include both the financial cost, as well as the opportunity cost of the time that will be spent.
2. The size of the company may also influence the frequency of reviews, as larger firms may have more employees per manager, thereby making it more costly for each manager, especially in terms of time. How often a formal review happens is dependent on the firm's structure and available resources.3. Once the timing and cost of the review has been established, creating a standardised method of rating will help simplify comparisons. While the basic criteria of the review should be standardised, it should still be job specific, with reference to specifics of the job. For example a person in sales may be assessed on sales figures.
4. While it's important to have the supervisor conduct the overall review, it may be advantageous to include other forms of review, such as a self review or a peer assessment to support the overall evaluation.
5. Being honest and open with your employees will likely be positively received, and will prevent potential misunderstandings that may arise if you aren't to the point.
6. Finally, help your employees set SMART goals, because one of the objectives of a performance review is to further employee development. Goals that are specific, measurable, attainable, relevant, and time-bound will give employees an extra target to achieve.
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