People Management & HR

6 key elements to consider when evaluating employee performance

  • 5 min Read
  • December 14, 2021

Author

Escalon

Table of Contents

Once or twice a year, most businesses conduct assessments in which managers and HR personnel evaluate employees’ performance against a certain set of criteria. However, those criteria may not adequately reflect every employee’s capabilities and competencies. 


Now, a growing number of businesses are changing assessments to make them more beneficial for both the employee and the employer. HR leaders at these companies are redesigning the process to preserve an employee’s unique identity, while also aiming to foster a conversation between manager and employee about the subject’s expectations and aspirations. This enables a more positive interaction that in turn engenders loyalty and a happier workplace.


Every business should consider designing an evaluation framework that supports learning and develops a more agile and future-ready workforce. Listed below are six important pillars that should underpin your employee evaluations.


Standards in performance:

These should be uniform for a particular role, irrespective of the individual subject’s qualifications. If a less-qualified individual is doing something that a highly qualified individual is not able to, then the former should be appreciated, and the latter counseled and trained to produce optimal work. Likewise, the standards should be achievable and not intimidating.


Individual goals:

Every employee is different. Categorizing everyone in the same bucket is an inefficient and outdated way to manage resources. It is up to people managers to recognize individual talent and get the best out of each team member. In this regard, setting individual goals that are specific and tailored to each is the right way to go in a complex work environment. This ensures that you are recognizing the individual as a person and also giving them an opportunity to showcase their talent.


Observe the entire duration:

Managers and overseers tend to only remember and analyze incidents and performance spanning only a few weeks or months in the recent past. This is completely off the mark. The employee has not only worked for the immediate duration of the assessment period, rather they have put in their effort year-round, and this needs to be taken into account judiciously. Perhaps the employee has gone out of their way to ensure that deadlines are met, or maybe they overcame a big obstacle. Observe and analyze the entire year to compile a balanced assessment.


Be ready:

Prepare yourself for the talk. When the time comes for managers and employees to sit at the table and discuss performance, there tends to be a certain apprehension from both sides. Most of the time this stems from the fact that the parties are unprepared or have not given it enough thought beforehand. Mentally preparing yourself, making notes and being ready for different scenarios tends to have a better outcome than rather going in with no forethought.


Talk to us about how our outsourced business services can help your startup be proactive in invoicing and improve debt collection rates.



Honest criticism/employee differences:

A person in a managerial or senior position may or may not have criticism for subordinates. If they do, care should be taken that criticism is specific and not presented as a blanket critique of the person. Never comment on an individual’s appearance, outlook or anything that is not associated with the work at hand. On the other hand, embrace constructive criticism regarding anything at the workplace. Another important point to remember is to refrain from comparing employees, whether they are performing the same role or not. Respecting individuality is a key component of human resources.


Have a conversation:

Most managers tend to be just discussing points during the review process, but the key is to have a conversation and an understanding of the situation, or the kind of person they are dealing with. Remember that the conversation should focus on performance.


Fine-tune your assessment with these six questions



The above pointers give you a head start on how to conduct and assess employees who work for and with you. But there are some other basic questions, which coupled with the pointers above will make your life easier and give you a sense of control during the evaluation process. These include:


  • If given a chance, would you promote this individual?
  • What does the future hold for them?
  • How can you make this individual a better employee, and through which tools?
  • Where does a specific individual stand in the team? Can they be replaced?
  • Do they deserve the highest remuneration?
  • Would they fly off or leave you in the lurch?

The correct employee performance evaluation method is more important than ever as it indicates your attitude toward your employees and how concerned you are about their morale. These questions are intrinsic to the process and can help close performance gaps.


Want more?

Since 2006, Escalon has helped thousands of startups lower their payroll costs and bring in lasting value with our outsourced HR solutions — and we can help yours too. Talk to an expert today.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Tax Implications of Remote Work: What SMBs Need to Know 

The rise of remote work has opened exciting possibilities for small and medium businesses – access to a wider talent...

Leadership & Growth

Succession Planning: Preparing for Leadership Transitions 

Change is inevitable in business, and one of the most significant changes a company can face is a leadership transition....

Accounting & Finance

Sales Tax Compliance in the Digital Age: Challenges and Solutions 

The rise of e-commerce and digital business models has revolutionized how companies reach customers, but it has also added new...

Leadership & Growth

Implementing Lean Management Principles in SMBs

“Lean management” might conjure images of big manufacturing plants fine-tuning assembly lines, but the principles of lean are highly relevant...

People Management & HR

Developing a Competitive Compensation Strategy for SMBs

For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...

Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...

Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...