The Performance Evaluation Cycle
Many people look forward to annual performance reviews the way they look forward to oil changes and tune-ups. Sure, these are standard operating procedures, but they can be a hassle and they could reveal bad news. As a result, performance reviews are often done poorly. They’re treated as an afterthought and rushed when the time comes. Or they’re not done at all.
When done effectively, reviews provide employees with feedback about their performance, clear expectations for performance going forward, and goals for the next year. And they give employers the documentation they need to justify pay increases, decreases, or other employment decisions. Really, though, reviews should be just one part of a larger performance management process.
The purpose of the performance evaluation process is to align individual employee goals with departmental and company goals. It links what an employee is doing on a day-to-day basis with the company’s long-term strategy.
Performance management is an ongoing process, with feedback and coaching happening regularly throughout the year. A well-oiled performance evaluation process helps the business run smoothly. It improves morale, builds trust and loyalty, and increases productivity.
And if coaching is done on a regular basis, there should be no surprises when it comes time for performance evaluations.