Employment Law Tip: A Performance Appraisal Check-Up

A performance appraisal system is key to helping employees grow and develop on the job and can help you to identify and reward your top performers. At the same time, a good system will assist you in identifying sub-par performers and developing plans to either improve their performance or weed them out. And, in today’s litigious environment, an objective and consistent appraisal program can help ward off discrimination claims.

10 Tips for Effective, Legal Performance Appraisals

Don’t let your performance appraisals fall by the wayside. Learn how to make them effective and legal with our exclusive White Paper, 10 Tips for Effective, Legal Performance Appraisals.

If you’re updating your appraisal program—or looking to implement one—here are some points to consider:

1. Appraisal form. Companies today are taking many different approaches to formal employee-evaluation systems. Some organizations rely on a brief form of two or three paragraphs, while others use elaborate rating schedules and multipage documents to evaluate their workers. How elaborate a system your organization uses depends on your needs. You may need to use different forms for different categories of employees. However, all appraisal forms should embody these two elements: 1) They should cover all relevant performance criteria; and 2) They should be understandable to both the evaluator and the employee.
2. Ratings. Rating scales are relatively easy to develop and can be adapted to many kinds of jobs. Various qualities, such as the ability to communicate and dependability, are rated on the basis of a numerical scale. For instance, a score of “5” might mean the employee is outstanding in a category, and a “1” would mean below average.
3. Job description. Accurate, detailed job descriptions are the building blocks of your appraisal system. Make sure that all of your job descriptions clearly describe the competencies needed to do the job and the duties the position entails. (For more information, see “How to Create Job Descriptions That Prevent Employee Lawsuits and Simplify Your Hiring Process—An Essential Guide for California Employers”)
4. Appraisal period. Most organizations evaluate employees periodically, usually annually on the anniversary of each employee’s hire date. Some firms review all employees at the same time each year. In either case, when employees are having serious problems with their performance, they should receive performance reviews more frequently.
5. Delivery. In most cases, the supervisor or manager will be delivering the appraisal to the employee. In some situations where job performance is sub-par, a human resources representative may choose to sit in on the appraisal with the supervisor.
6. Training. Make sure your organization’s managers and supervisors are thoroughly trained in the specifics of the performance appraisal system and in how to deliver an appraisal. Training is key to ensuring that your system is effective.

Our online subscribers can download an exclusive new Employer Guide on performance appraisals, which includes two sample appraisal forms.

Additional Resources:

Employer Guide: Performance Appraisals: How to Bolster Employee Performance and Decrease Your Risk of Lawsuits