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Best Practices for Conducting Employee Performance Evaluations and Feedback



Employee performance evaluations and feedback are essential to managing a business, yet they can be stressful for managers and employees. Performance evaluations are important because they help identify areas of strength and areas for improvement, provide a platform for setting goals and expectations, and help employees understand their role within the company. By providing employees with regular feedback and guidance, organizations can foster a culture of continuous improvement and development, ultimately leading to increased productivity, engagement, and retention.

However, if not conducted properly, employee evaluations can lead to resentment, frustration, and disengagement. And if managers lack the necessary skills or experience, running efficient and effective performance evaluations can be challenging. Therefore, it’s essential to explore and implement various best practices to ensure they are objective, fair, and effective. This article will discuss the best practices for conducting feedback that you can apply to your next round of evaluations.

Set Clear Expectations & Objectives for Performance Evaluations Before conducting any employee performance evaluations, setting clear expectations and objectives is essential. This will help the employee understand what is expected of them and what they are working toward, which will help them be better equipped to achieve their goals and meet performance standards. Without clear expectations and objectives, employees may be unsure of what to do to succeed, leading to confusion, frustration, and decreased motivation.

When setting objectives, make sure they are specific, measurable, achievable, relevant, and time-bound (SMART goals). This could include key performance indicators (KPIs), job-specific competencies, or project milestones. This will give the employee a better understanding of their responsibilities and goals and make it easier for you to evaluate their performance. Once the criteria are established, managers should communicate them clearly to employees and discuss how they will be evaluated.

Setting clear expectations and objectives can lead to improved performance, increased motivation, and a stronger sense of alignment between individual and organizational goals.

Provide Regular Feedback In Between Formal Performance Evaluations Regular feedback is essential for employee development and growth between performance evaluations. It helps employees understand what they are doing well and where they can improve so that they can come to their annual assessment with a lot of growth achieved throughout the year already. Providing feedback regularly can also help employees increase productivity and be higher performers quicker than if they received feedback once a year. It also helps to build a culture of open communication and transparency, which can lead to improved employee engagement and satisfaction.

To give regular feedback, managers should provide it both informally and formally. Informal feedback can be given daily and involve simple comments or observations about an employee’s performance. This type of feedback is less formal and can be given immediately, providing employees with immediate guidance and support. On the other hand, formal feedback should be given at regular intervals, such as quarterly or bi-annually, and should be more comprehensive.

Create a Comfortable and Relaxed Environment Employee evaluations can be stressful and intimidating, so creating a comfortable and relaxed environment is important. This will help the employee feel at ease and more willing to engage in the conversation. And when employees feel at ease and comfortable engaging in their evaluation, they are more likely to be open and honest about their performance and receptive to feedback.

The environment should be private, quiet, and free from interruptions when facilitating performance evaluations. It is also important to schedule the review at a convenient time for the employee and to provide them with any necessary information beforehand.

A comfortable and relaxed environment during performance evaluations can also be achieved through the approach and tone of the one conducting the review. During the meeting, managers should establish a positive and supportive tone. This can involve starting the discussion with a positive comment or compliment and expressing appreciation for the employee’s hard work and dedication. Managers should also be attentive and present, actively listening to the employee’s concerns and feedback and responding with empathy and understanding.

Use Performance Metrics Performance metrics are a useful tool for evaluating employee performance. They provide objective data that can be used to measure an employee’s progress toward their goals and lay all the vital information out in a clear, easy-to-understand way. Performance metrics include sales figures, customer satisfaction ratings, and project completion rates. Using performance metrics makes it easier to identify areas where employees excel and where they may need additional support or training.

During the evaluation, managers should review performance metrics and other performance criteria, such as behavior and attitude. This can help to provide a more well-rounded and comprehensive assessment and ensure that all aspects of employee performance are considered.

Develop an Action Plan One main objective of employee performance evaluations should be for employees to come out of their assessment knowing exactly what they need to improve and how to implement the feedback given. Providing employees with an action plan during their evaluation gives them clear guidance to improve and increase performance immediately.

An action plan should outline specific steps employees can take to boost their performance. It should include deadlines and action items. It is also important to involve the employee in developing the action plan to ensure they are committed to the process and understand what is expected of them.

Provide Training and Support If it comes up during an employee evaluation that any of their areas for improvement stem from a lack of training in that particular area, it’s important to be able to offer the proper training and support to improve performance in those areas. During the evaluation, managers should review the employee’s performance and identify areas where additional training or support may be needed. This can include on-the-job training, mentoring, or other resources such as workshops, classes, or online courses.

By providing training and support, managers can help employees improve their performance and ultimately contribute more effectively to the organization’s goals and objectives. Providing these also shows employees that the company is invested in their development and growth. This can lead to improved performance, increased job satisfaction, and better retention of valuable employees.

Celebrate Success Celebrating success and positive reinforcement is just as important as discussing areas of improvement. Employee performance evaluation provides the opportunity to give employees the recognition they deserve and celebrate their accomplishments. It is important to recognize and celebrate the employee’s achievements and to show appreciation for their hard work and dedication. Celebrating successes helps to build morale and motivation and can lead to improved employee engagement and satisfaction.

Managers should take the time to acknowledge and celebrate the employee’s accomplishments during the evaluation meeting, whether it is a specific goal achieved, positive customer feedback, or an overall improvement in performance. This can involve praising the employee’s efforts, providing positive feedback, or offering rewards such as bonuses or additional time off.

Get More Out of Performance Evaluations Employee evaluations and feedback are essential for managing a business and developing employees. By following these best practices, you can conduct assessments that are objective, fair, and focused on employee development and growth to give better feedback and get more out of your annual performance evaluations.

To learn more about conducting more efficient and effective performance evaluations, watch this webinar to help you rework your annual performance reviews and give employees what they really need and want.



CHRIS DYER Chris Dyer is a recognized company culture and remote work expert. As a former CEO managing thousands of people, his companies consistently were named a best place to work. They have also been named a fastest growing company by Inc Magazine 5 times. Chris routinely consults and speaks, and Inc Magazine ranked him as the #1 Leadership Speaker on Culture. He has two bestselling books The Power of Company Culture and Remote Work, and has been named #5 on the Leadershum Power List, a Top 40 Change Management Guru, a Top 50 Global Thought Leader, and a Top 50 leadership podcast just this year. As a leadership speaker his goal is to inspire audiences with a straightforward delivery, insightful candor, and engaging humor. His talks leave audiences permanently transformed, offering innovative perspectives on leadership to improve company culture, and empower organizations to discover new successes. Countless companies have unlocked productivity, performance, and profits by implementing his 7 Pillar Strategy.

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