First, like any important process, the metrics used to measure effectiveness and progress ![\"\"](\"https:\/\/berkonomics.com\/wp-content\/uploads\/2019\/11\/employee-review.png\")
are so important to a successful outcome, that a good manager will spend time reviewing those metrics used by others and create an appropriate set of measurements for your company that reflect the most important attributes of the employee as they relate to the needs of the company.\u00a0 There are many formats for use in rating and reviewing employees, and selection of the proper form and format is the first step in a successful process. \u00a0But note that this alone will be time-consuming for you.<\/p>\n
How often to review, if ever?<\/strong><\/p>\n I\u2019ve been asked often if such reviews should be performed quarterly, semi-annually, or annually.\u00a0 Note that few ever ask if they should be performed at all.<\/p>\n One argument: legal protection for the company<\/strong><\/p>\n When an employee is subsequently dismissed for any reason, the documentation of past performance and reviews, including any past notification of weaknesses or warnings, becomes an important shield to protect the company against a subsequent lawsuit or challenge from a state employee review process.\u00a0 Many companies do not take the time to perform such reviews and end up paying the price in adverse rulings by courts or commissioners based upon verbal statements alone. So, protection of the corporation is reason number one for investing in such a process.<\/p>\n Do employees care enough to go through the process?<\/strong><\/p>\n [Email readers, continue here…]\u00a0<\/em><\/span> \u00a0Second, employees most often genuinely want to know how they are performing against the company\u2019s standard and management expectations.\u00a0 It is human nature to desire praise; and the review process is one tool to provide such positive feedback to employees. This still does not address the question of how often to make this a formal process if ever.<\/p>\n Alignment of employee goals with those of the company<\/strong><\/p>\n Third, every employee should be directed to work toward the goals of his or her department, which in turn are aligned with those of the company itself.\u00a0 By providing a format for review that includes a number of key performance indicators that measure just such alignment, both the employee and the manager keep focused upon the real goals for productivity.<\/p>\n Passing on corporate values<\/strong><\/p>\n So, how often should you and your reports do this?<\/strong><\/p>\n To answer the question of how often to perform such employee reviews, from experience I believe that quarterly formal written reviews are too much of a task for all.\u00a0 Semi-annual reviews are excellent, especially for companies that offer stock options as well as merit increases for outstanding performance.\u00a0 With such reviews, option grants could be tied to one review and merit increases to the other.\u00a0 Two carrots in a year are better than one for obtaining desired outcomes. \u00a0The very minimum level of acceptability should be one annual review for an employee. \u00a0There are those who are passionate about tossing out the formal review process completely and just providing feedback when warranted, positive or negative.<\/p>\n How about reviewing the CEO?<\/strong><\/p>\n I participate in a number of CEO reviews as board chair of those companies.\u00a0 In such reviews of the top executive, I reach out to his or her direct reports for input, and then I turn to other members of the board of directors.\u00a0 With such a comprehensive view of CEO performance, it is much easier to sit with the CEO and provide valuable input that is useful for CEO development.\u00a0\u00a0 And even founder-CEO\u2019s are thankful for the input received, usually taking criticism as a challenge to grow in the position.<\/p>\n Our conclusion<\/strong><\/p>\n I\u2019d have a difficult time thinking that any company, large or small, could perform at its peak without great employee metrics including individual key performance indicators, capped by consistent reviews and feedback. \u00a0\u00a0You\u2019ve just heard the arguments for and against specific periodic reviews. \u00a0That decision I\u2019ll leave up to you now that you\u2019ve heard from both sides of this controversial argument.<\/p>\n","protected":false},"excerpt":{"rendered":" Here comes a controversial subject. \u00a0How often do you take the time to rate your direct reports?\u00a0 Is it worth the time and effort when measured from the perspective of the company and of the employee? \u00a0In terms of time, … Continue reading ![\"\"](\"https:\/\/berkonomics.com\/wp-content\/uploads\/2019\/11\/Employee-review2-300x200.jpg\")
Fourth, corporate values are passed on to employees in a number of self-reinforcing ways, including discussion of values during the review process.\u00a0 Many a business would not have strayed into a dangerous regulatory and legal abyss if employees were shown, told, and measured by their adherence to the values stated by their corporation as important to all stakeholders.<\/p>\n