The Importance of Performance Evaluations

When it comes to performance appraisal systems or programs, one size does not fit all. Any form of appraisal system should be directly tailored to the employer's workforce if it is going to prove useful. For instance, it should include measurable, objective criteria directly related to the assessment of the essential job functions and necessary qualifications for each position. Accordingly, it should be closely tied to the employee's job description.

When assessing an individual's performance, it is best to evaluate behavior-oriented traits. This includes in part, measuring the quality and quantity of work performed, the ability to meet deadlines and compliance with established protocol. However, measuring personality traits such as integrity, conscientiousness, interpersonal skills and other intangible characteristics that define attitudes (versus observable behavior) should be limited, due to their subjective nature.

When completing the evaluations, managers should be mindful of focusing on the entire period of review ' not just the most recent past or one incident. This focus avoids basing a review on an aberration or hiccup in one's performance. Additionally, the assessment should be based on factual data, not general opinions about an individual or personal feelings. Most importantly, the criteria should be applied fairly and consistently to eliminate favoritism and potential claims of disparate treatment.

Care should also be taken to avoid “grade inflation” by rating employees higher than warranted in an effort to motivate them or to avoid confrontation. In the end, this type of benevolence can mislead the employee into thinking that everything is fine and only perpetuates the problem at hand. It can also be used as evidence in a lawsuit to challenge an otherwise legitimate employment decision based on performance. For example, an employee who has never been told about a performance issue may claim that a sudden dismissal about alleged long-standing problems is not the real reason for the decision, but instead a pretext for some form of discrimination.

Communication

Following the completion of the evaluation, the next step (which can often be the most difficult), is communicating the assessment to the employee. This may be done directly by the manager responsible for supervising the employee in the presence of another witness, such as a human resources or another professional. Regardless of who does the talking, honesty is the best policy. Managers are urged to be direct with employees about their performance and focus on specific information rather than generalizations. When assessing negative qualities, emphasis should be placed on methods for improvement when possible. For instance, an “action plan” with well defined objectives and time lines should be developed to assist an employee in achieving performance goals.

It is also important that management refrain from doing all the talking during the performance meetings. Part of the discussion should include an opportunity for the employee to respond to issues raised in the meeting. This offers management an opportunity to learn something about the employee that may be of value but was unknown beforehand. The employee should also be given a chance to express interests in training, promotion and career development. Prior to the conclusion of the meeting, the employee should be required to sign the evaluation, acknowledging his or her receipt and understanding of the document. This will help to avoid any subsequent dispute as to whether the employee was made aware of the issues addressed in the appraisal.

Feedback

Although many organizations only require annual performance appraisals, continuous, informal feedback (both positive and negative) throughout the year is encouraged. This is important for several reasons. First, feedback given contemporaneous with a performance issue is more likely to correct the problem at hand, rather than to allow things to continue as if nothing were wrong. Additionally, employees like to know whether they are meeting expectations. Ongoing assessments can be morale boosters. They can also signal to an employee that things may not be working out, enabling the employee to make more educated career choices.

Finally, and perhaps most importantly, ongoing feedback takes the element of surprise out of a situation when poor performance results in disciplinary action or dismissal. When an employee is in the dark about an issue that results in discipline or dismissal, it is more likely that the employee will question the employment decision and search for reasons other than performance, i.e., race, gender, age, etc. This can inevitably lead to litigation. Following the guidelines set forth herein may assist in defending against claims of discrimination or disparate impact when performance evaluations are used as the basis for a reduction-in-force or other personnel decisions.

Christine Bonavita defends private and public sector employers in state and federal courts and before governmental agencies with respect to the Americans with Disabilities Act, Title VII, the Age Discrimination in Employment Act, the Family Medical Leave Act, the Fair Labor Standards Act, and the National Labor Relations Act. She can be reached at [email protected].

It is that time of year when many managers are either presented with the daunting and time-consuming task of completing performance appraisals or have just finished their appraisals and are waiting to communicate the results to the employees. In either situation, the process is usually coupled with questions from managers as to why evaluations are necessary. Employees often wonder themselves.

Using an Appraisal Properly

Employee performance appraisals are an important tool in any organization if used properly. For instance, evaluations may be used to:

• assess an employee's strengths and weaknesses;
• provide feedback on recent performance;
• establish employee expectations;
• assess performance over time;
• set future performance goals and objectives;
• provide a basis for promotion, training and professional development;
• justify compensation or disciplinary decisions; and
• select personnel for a reduction-in-force.

Different Systems

When it comes to performance appraisal systems or programs, one size does not fit all. Any form of appraisal system should be directly tailored to the employer's workforce if it is going to prove useful. For instance, it should include measurable, objective criteria directly related to the assessment of the essential job functions and necessary qualifications for each position. Accordingly, it should be closely tied to the employee's job description.

When assessing an individual's performance, it is best to evaluate behavior-oriented traits. This includes in part, measuring the quality and quantity of work performed, the ability to meet deadlines and compliance with established protocol. However, measuring personality traits such as integrity, conscientiousness, interpersonal skills and other intangible characteristics that define attitudes (versus observable behavior) should be limited, due to their subjective nature.

When completing the evaluations, managers should be mindful of focusing on the entire period of review ' not just the most recent past or one incident. This focus avoids basing a review on an aberration or hiccup in one's performance. Additionally, the assessment should be based on factual data, not general opinions about an individual or personal feelings. Most importantly, the criteria should be applied fairly and consistently to eliminate favoritism and potential claims of disparate treatment.

Care should also be taken to avoid “grade inflation” by rating employees higher than warranted in an effort to motivate them or to avoid confrontation. In the end, this type of benevolence can mislead the employee into thinking that everything is fine and only perpetuates the problem at hand. It can also be used as evidence in a lawsuit to challenge an otherwise legitimate employment decision based on performance. For example, an employee who has never been told about a performance issue may claim that a sudden dismissal about alleged long-standing problems is not the real reason for the decision, but instead a pretext for some form of discrimination.

Communication

Following the completion of the evaluation, the next step (which can often be the most difficult), is communicating the assessment to the employee. This may be done directly by the manager responsible for supervising the employee in the presence of another witness, such as a human resources or another professional. Regardless of who does the talking, honesty is the best policy. Managers are urged to be direct with employees about their performance and focus on specific information rather than generalizations. When assessing negative qualities, emphasis should be placed on methods for improvement when possible. For instance, an “action plan” with well defined objectives and time lines should be developed to assist an employee in achieving performance goals.

It is also important that management refrain from doing all the talking during the performance meetings. Part of the discussion should include an opportunity for the employee to respond to issues raised in the meeting. This offers management an opportunity to learn something about the employee that may be of value but was unknown beforehand. The employee should also be given a chance to express interests in training, promotion and career development. Prior to the conclusion of the meeting, the employee should be required to sign the evaluation, acknowledging his or her receipt and understanding of the document. This will help to avoid any subsequent dispute as to whether the employee was made aware of the issues addressed in the appraisal.

Feedback

Although many organizations only require annual performance appraisals, continuous, informal feedback (both positive and negative) throughout the year is encouraged. This is important for several reasons. First, feedback given contemporaneous with a performance issue is more likely to correct the problem at hand, rather than to allow things to continue as if nothing were wrong. Additionally, employees like to know whether they are meeting expectations. Ongoing assessments can be morale boosters. They can also signal to an employee that things may not be working out, enabling the employee to make more educated career choices.

Finally, and perhaps most importantly, ongoing feedback takes the element of surprise out of a situation when poor performance results in disciplinary action or dismissal. When an employee is in the dark about an issue that results in discipline or dismissal, it is more likely that the employee will question the employment decision and search for reasons other than performance, i.e., race, gender, age, etc. This can inevitably lead to litigation. Following the guidelines set forth herein may assist in defending against claims of discrimination or disparate impact when performance evaluations are used as the basis for a reduction-in-force or other personnel decisions.

Christine Bonavita defends private and public sector employers in state and federal courts and before governmental agencies with respect to the Americans with Disabilities Act, Title VII, the Age Discrimination in Employment Act, the Family Medical Leave Act, the Fair Labor Standards Act, and the National Labor Relations Act. She can be reached at [email protected].