Performance reviews are documents that managers like to hate and that HR professionals like to have. When done right, performance appraisals can be very helpful. But if done wrong, they can demoralize employees, frustrate managers, and expose an organization to legal risk. To minimize the risk of litigation, develop a practical performance evaluation system that meets legal requirements. The Center for Association Leadership suggests creating an evaluation form specifically tailored to the employee`s position. Training of your performance evaluators; and the establishment of a rating scale, where the lowest is “unacceptable” and the highest is “exceptional”. To increase accuracy, you can use two evaluators for the same employee instead of one. Make sure your employees are clear about the professional tasks to which their assessment relates and offer an effective appointment process. An employer may have a top-notch evaluation form, but this form is not worth much if the people who use it are not properly trained. Evaluators should be provided with written instructions on the purpose and mechanisms of the performance appraisal system, emphasizing the importance of accuracy and providing information on potential OEE problems, as well as instructions on the relationship between performance evaluation and job analysis or job description. While this is an essential part of employee performance management, performance appraisals can be filled with potential legal landmines. This program shows managers how to properly structure meetings and comply with labor laws.
Below are some practical guidelines for associations to develop and implement an employee performance appraisal or evaluation system that meets these practical and legal criteria. But instead of viewing performance appraisal as a valuable tool for communication and recognition, many organizations see it as a necessary evil, a paperwork exercise designed to keep the organization out of court. Late evaluations. According to Segal, not delivering a performance review on time can make employees feel offended, devalued, or feel like there are double standards, especially in cases where companies regularly discipline employees for attendance issues or missed deadlines. In addition, a delay can create a “window of opportunity for a pre-emptive legal strike,” he said, if an employee`s fear of the delay leads him to seek advice from a therapist — or a lawyer. For this reason, he suggested that employers “evaluate supervisors not only based on the quality of their exams, but also on their timeliness,” adding that an employer he knows will not give salary increases to managers if their exams come too late. Association leaders may need to consider reducing staffing levels to maintain the financial health of their organization. Although these workforce reductions are sometimes real “staff reductions” – not based on the performance of those affected, but on the decision to eliminate or outsource certain departments – association leaders will often try to reduce staff whose performance level is below expectations. Segal said managers should avoid other common mistakes, such as performance issues from a previous evaluation period coloring a new rating, focusing too much on recent performance and focusing on possible causes of poor performance, such as disability or family responsibilities, rather than focusing on performance itself. Conducting an employee performance evaluation gives you the opportunity to discuss goals and set goals, and allows you to provide personalized feedback that explains to the employee exactly what is expected of them.
Writing a performance appraisal can help you create a credible history of an employee`s problems, which can be helpful in defending against an employee`s subsequent claims that a dismissal was for a discriminatory reason rather than based on their performance. Overvaluation. The higher-than-justified employee rating gives absent employees a false sense of security, Segal noted, and it devalues the excellent performance of others, especially in situations where performance-based compensation is allocated from a pool of funds. He suggested that managers think about what it means for employees to simply meet the expectations of their work and determine whether a particular employee`s score should be above or below that level for each criterion measured. Documentation of a performance evaluation should be done in a standard, objective and thorough form. While there are many performance appraisal systems and products in place, from a legal perspective, an evaluation form should include the following: If done right, performance appraisals can promote professional growth and motivate employees, while providing liability protection to the association. If you already have job descriptions for your employees, developing performance appraisal methods costs very little – staffing time is your biggest expense, but you have it on any staffing project. Get sample evaluation forms and determine which one is best for your business. Job descriptions are crucial. You need it to determine the performance standards your employees need to meet. Consider the cost of leadership training provided to supervisors and managers to assess job performance; Provide employees with training on what to expect at the time of the assessment.
Your entire workforce needs to understand how the company evaluates performance and why you use performance reviews. Donna Roback, a Minnesota-based attorney and employment and employer mediator, cites training or lack of training on employer errors in implementing an assessment system. Most people are familiar with their typical use – granting salary increases – but explain how exams can be used to decide who will receive education or professional development. If you have this framework, the legal aspects are practically null, provided that the supervisory authorities carry them out appropriately. Segal stated that it is important to ensure that an organization`s disciplinary process is consistent with the performance evaluation. “We shouldn`t have a history of two cities where the process of discipline and evaluation are separate and different and are actually at war with each other. As a small business, you will likely use the same performance appraisal format for all employees. If you use different types of performance reviews, be sure to use the same type for employees with similar tasks. For example, if you have five administrative assistants, don`t use narrative or essayist scoring for three and no graphical rating scale for the other two.
It can be prohibitive to conduct different types of performance reviews in your organization. However, if you do, use an appropriate format for each type of job and the same type for similar positions. Segal suggested that HR send out the form mid-year, even if an employer does not conduct formal semi-annual reviews, so that the manager can inform an employee of a performance decline and give them the opportunity to correct it well before the annual review is conducted.