{"id":15058,"date":"2020-09-10T15:05:16","date_gmt":"2020-09-10T19:05:16","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=15058"},"modified":"2020-09-25T19:42:38","modified_gmt":"2020-09-25T23:42:38","slug":"how-to-evaluate-employee-performance","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-evaluate-employee-performance\/","title":{"rendered":"Tips for How to Evaluate Employee Performance"},"content":{"rendered":"\n<p>Do you really know how to evaluate employee performance? <\/p>\n\n\n\n<p>Learning how to evaluate employee performance is an important part of any manager&#8217;s skills. Providing good evaluations is part of being a manager, and helps build a <a href=\"https:\/\/www.shortform.com\/blog\/startup-culture\/\">positive company culture<\/a>. <\/p>\n\n\n\n<p>Keep reading to find out how to evaluate employee performance. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Evaluate Employee Performance<\/strong><\/h2>\n\n\n\n<p>Managing people is a simple series of steps. Learning to how evaluate employee performance is part of these goals. <\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Define the goal.<\/li><li>Give the goal to people who can achieve it. Preferably, you don\u2019t need to tell them what to do to achieve it (this is micromanaging).<\/li><li>Hold the responsible people accountable for reaching the goal.<\/li><li>If they fail, train them and give them time.<\/li><li>If they can\u2019t do the job after this, switch them to a different job that matches their strengths, or get rid of them.<\/li><\/ol>\n\n\n\n<p>The ultimate responsible party is the person who bears the consequences of failure. If you\u2019re the business owner, that is you. For example, it\u2019s your responsibility to pick the right doctor, since you bear the responsibility if she does a bad job, not the doctor\u2019s. <\/p>\n\n\n\n<p>Here are Dalio\u2019s principles on how to train new people, evaluate how people are doing, and how to decide what to do with people based on how they\u2019re doing. This is how you can learn how to evaluate staff performance. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Evaluation<\/strong><\/h4>\n\n\n\n<p>Make a clear \u201ccontract\u201d on what the expectation of work is. Without this, you can\u2019t hold people accountable for it not being fulfilled.&nbsp;When everyone knows the expectations, it makes deciding how to evaluate employee performance easier. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Review goals, tasks, and responsibilities at least once a quarter.&nbsp;<\/li><li>Meet more frequently to get in sync\u2014perhaps at a ratio of 1:10 to 1:20 for the time spent with the person over the time the person spends working.<\/li><li>If someone performs poorly, make sure it\u2019s not because the expectations weren\u2019t clear to them.<\/li><\/ul>\n\n\n\n<p>Make your metrics clear-cut and impartial.<strong> Define the most critical metrics, and have discipline in checking them regularly.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Even better, tie the metrics formulaically to predetermined consequences (like bonuses).<\/li><\/ul>\n\n\n\n<p>Take data points over time to notice patterns in people. Built from the specific data\u2014their metrics, performance, input from others\u2014up to an overall impression. This is an important part of knowing how to evaluate staff performance. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Bridgewater uses the <a href=\"https:\/\/www.shortform.com\/blog\/dot-collector-ray-dalio\/\">Dot Collector<\/a> to compile thousands of data points about people over time.<\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.shortform.com\/blog\/how-to-evaluate-interview-candidates\/\">Evaluate employees<\/a> with the same rigor as you do job candidates. Don\u2019t be easy on people just because they\u2019re not outsiders.<\/p>\n\n\n\n<p>Hold people to the same standards, and provide feedback consistent with the standards.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Don\u2019t hold the stronger performer to a higher standard.<\/li><li>Don\u2019t spread the blame. The person who is most in the wrong needs to get the strongest feedback. Otherwise, they might believe they didn\u2019t cause the problem.<\/li><\/ul>\n\n\n\n<p>Assign credit precisely. Specific people are responsible for specific results.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Everyone thinks what they\u2019re doing is more important than it really is. People tend to overestimate their own contributions. If you survey people on what their % contribution to the organization is, you\u2019ll end up with well over 100% in total (Bridgewater\u2019s was 300%).<\/li><\/ul>\n\n\n\n<p>Dalio likes \u201cforced rankings,\u201d in which people rank their co-workers from best to worst. This prevents an assessment of everyone as above average, and it helps identify <a href=\"https:\/\/www.shortform.com\/blog\/low-performers\/\">low performers<\/a>. This is one way to decide how to evaluate employee performance. <\/p>\n\n\n\n<p><strong>Don\u2019t be overconfident about your assessments.<\/strong> Use other people to develop your assessment.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Triangulate your impressions of people with other believable people.<\/li><li>Get in sync with the person you\u2019re giving feedback to. Do they agree with your feedback?<\/li><\/ul>\n\n\n\n<p>Judge people based on both their reasoning and their outcomes. Often, the outcomes are out of their control, and <strong>if the person had sound reasoning, they should not be punished for a poor outcome<\/strong>. This is an important part of knowing how to evaluate staff performance. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>To use a golf analogy, \u201cPay more attention to the swing than the shot.\u201d<\/li><\/ul>\n\n\n\n<p>Periodic performance reviews should contain few surprises\u2014feedback should have been delivered continuously so that people know where they stand. This is an important tool for knowing how to evaluate employee performance. <\/p>\n\n\n\n<p>Check behavior, and deter bad behavior. More people than you think will cheat if given the opportunity.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Choose people to audit or investigate. Explain that you\u2019re doing this and why to the people under audit, so there are no surprises.&nbsp;<ul><li>They shouldn\u2019t take this personally as a lack of trust, just as bank tellers shouldn\u2019t complain when banks count the money in drawers.<\/li><\/ul><\/li><li>Auditors\u2019 procedures should not be known to those being audited.<\/li><li>Find ways to audit the auditors to avoid simple rubber stamping.<\/li><li>If you find a rule violation, use \u201cpublic hangings\u201d to deter future bad behavior.<\/li><\/ul>\n\n\n\n<p>Now that you know how to evaluate employee performance, you can use these techniques with your own staff. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you really know how to evaluate employee performance? Learning how to evaluate employee performance is an important part of any manager&#8217;s skills. Providing good evaluations is part of being a manager, and helps build a positive company culture. Keep reading to find out how to evaluate employee performance.<\/p>\n","protected":false},"author":5,"featured_media":15069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[129],"class_list":["post-15058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-principles-life-and-work","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tips for How to Evaluate Employee Performance - Shortform Books<\/title>\n<meta name=\"description\" content=\"Do you need to know how to evaluate employee performance? As a manager, providing good feedback helps a company succeed. Here&#039;s why.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/how-to-evaluate-employee-performance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tips for How to Evaluate Employee Performance\" \/>\n<meta property=\"og:description\" content=\"Do you need to know how to evaluate employee performance? As a manager, providing good feedback helps a company succeed. 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