The new year ushers in new goals – and often annual employee performance reviews. Not surprisingly, research shows that both managers and employees dislike performance reviews. The critical part of any evaluation is clear communication. The Davidson Group provides some insights on commonly used review processes.
Performance Reviews
An employee’s performance is documented and evaluated by their immediate supervisor. Although they are usually done on an annual basis, some organizations are doing them more frequently to improve communication.
Pros – They can enhance employee focus, determine training needs and improve performance.
Cons – There is a considerable time lag in work and feedback. There are negative views on this process due to its subjective nature.
360-Degree Review
Feedback is gathered from three levels – supervisor, peers and subordinates. The employee also provides input on their view of their performance.
Pros – This can allow an organization to develop employee behavior and improve employee relationships.
Cons – This feedback tool is not customized to the needs of the organization. Some question the accuracy of the results.
Points Rating Systems
This process provides an analytical and quantitative method of determining the relative values of jobs. Point-rating plans define characteristics common to each job being evaluated and allocates point values to each degree.
Pros – Employees are evaluated based on the same metrics. Employee identity can be masked for an unbiased review of performance for each job.
Cons – Employees justify their rating for each characteristic of his/her role. While it is objective, the assessment is subjective due to the human graders.
There are numerous other types of performance evaluations used. Instead of a lengthy review process, teach your supervisors and managers to give timely feedback.
Contact the Davidson Group at 336-294-5053 for ideas on how to improve your review process for better employee performance.
