Management tips for giving employee feedback that improves employee performance

Conducting an effective contribution evaluation begins with the Supervisor selecting an appropriate time and place to meet with the employee to review the evaluation privately and without interruption.  The key to setting the location is confidentiality, a critical success factor in the evaluation process.

Going into and during the evaluation review, the Supervisor must never allow personal feelings to influence what is said to the employee.  Remember that the discussion is to be conducted professionally with respect; derogatory comments are inappropriate.  Also, the employee should never be allowed to control the evaluation.

The evaluation form is discussed with the employee to explain how each category was rated. Specific examples should be cited to help reinforce each rating.  An employee who does not understand their evaluation is less likely to try to improve their performance.  An employee who is genuinely surprised is unlikely to hear or understand anything beyond the surprise.  Be clear on the message you want the employee to hear when completing their evaluation form.

An employee’s strengths must be recognized and contributions recognized.  Specific suggestions for improvement must accompany the discussion of weaknesses.  Counseling is an integral part of the evaluation process since the objective is to improve employee contributions and behavior patterns.

Employees want to know where they stand and how they can improve.  A commitment must be obtained from the employee to correct or at least improve any problem areas. The employee must realize that improvements are expected where noted. In some cases, the Supervisor may require that the employee receive further training or education.

The employee should be encouraged to make comments during their evaluation.  The Supervisor has failed the employee if the evaluation is a monologue and not a dialogue.

The evaluation ends when both the Supervisor and the employee sign the completed evaluation form.   A copy of the signed form is given to the employee, and the original is forwarded to H.R., the Office Manager, or the Owner for inclusion in the personnel file.

Contribution evaluation ratings need to be grounded in observable facts

Evaluations must be based on the Supervisor’s assessment of the employee’s contributions to the business, not solely on the comments or opinions of other people.  The overall employee evaluation is intended to be a culmination of contributions during the entire evaluation period.

Single events of outstanding or faulty performance should not be used by themselves but considered in the entire context of the rating period.  This underscores the importance of keeping accurate records, not only of “poor” performance but of “good” performance on each employee, by making notes to file.

Abstract concepts like attitude, motivation, and cooperativeness help categorize different aspects of an employee’s performance, but they do not convey much meaning because they are too vague.

Think of it in this way — you cannot explain someone “not having enough confidence.” Yet you can explain and help correct someone speaking in a low, tentative, quiet voice who does not take an active role during conversations or meetings, nor do they volunteer needed information.

Avoid the eight most common pitfalls in conducting an objective employee contribution review

1. “Halo Effect” – rating the employee the same in every category based on a generalized opinion of their overall job performance. Each category must be evaluated separately and objectively.
2. Bias – rating an employee based on whether the Supervisor likes or dislikes that individual.
3. Undue credit for length of service – rating an employee based on their length of service instead of the quality of job performance. In other words, thinking that “he must be doing an outstanding job because he has worked here ten years.”
4. Self-Identification – identifying with the employee’s personality, appearance, work habits because they are like, etc., assigning a higher rating than expected.
5. Loose ratings – giving higher ratings out of a desire to please and remain “a friend” to the employee. A true “friend” would not let an employee’s marginal or poor performance continue unrecognized, particularly when it gets to the point where the person might have to be separated from the company.
6. Tight ratings – rating all employees below standard due to the Supervisor being a “perfectionist.”  Do not confuse “results.” Just because an employee does not come to work as early as you or worry as much as you about the business, does that mean they are not worthy of excellent results in the performance of their assigned job if their contribution exceeds expectations.
7. Personal competitiveness – giving low ratings to an employee because the Supervisor perceives that individual as a challenge or threat to their job security. The truly outstanding Supervisor knows that their success is determined by those who work for them.  Only by hiring those who are as good as, if not better, can a Supervisor guarantee themselves better odds of
8. The “fuzzies” — sometimes employees are rated as:
   • Being poorly motivated
   • Not having confidence
   • Not having credibility
   • Being uncooperative
   • Having a bad attitude
   • Having poor communication skills
   • Not being dependable

 Your business’s most valuable “assets” are those who contribute to the business’s sales and profits.  Your most costly “assets” are those employees who contribute less value to the business than they earn in compensation.  A key element in keeping your employees engaged in their work is the formal performance evaluation.   This is when you assess the employee’s value to your company equitably and objectively.

One of the most significant benefits of a contribution-driven evaluation process conveys the companies appreciation of its best employees.  If done correctly, it will improve the average and substandard employees and serve as a key trigger in eliminating marginal employees.

Your contribution management process also serves as the basis for wage and salary increases. Only the latest evaluation completed during the year should be the basis for any wage or salary increase.  Then, the primary factor must be the improvement in either the total score or in individual categories.

Would you like help establishing a contributions management process?

Click here to speak with one of our certified BusinessCPR™ Business Coaches to learn how to quickly set up a contributions management process.  A process that will lead you to make more money by helping those in your employ better appreciate where they contribute to business sales and profits and where they could do better.