Employee evaluations – Do you have to do them?  Should you?  If so, what’s the best way? Let’s start with an answer that our clients like to hear:

Employers Do Not Need to Do Employee Evaluations

Seriously, folks. If you hate doing these, don’t do them.  Better yet, don’t promise to do them either. By the way that inadvertent promise is the first mistake we’ll find in your borrowed or self made employee handbook!   First, realize that feedback is a good thing with employees, whether it’s setting goals for improvement or showing appreciation for a job well done.  It’s all part of creating an environment of open communication, and keeping employees focused on your track, instead of their own agendas.  However, we also know evaluations are time consuming, can create an expectation for a raise, and can even come back and bite you if you’re not careful. But, if you do them, here is a ton of practical guidance on the best practices and things to avoid.

Note that in our form, there are no general grades like 1 to 100 or A to F. Read on for the reasons.

Employee Evaluations Can Do More Harm During a Employee Lawsuit

First, a cautionary tale on how they can do more harm than good: Employee Jane needs to be terminated, laid off, or let go for some reason.  The only written record in her file is a recent past evaluation that points out some areas of needed improvement, but gives an overall score that indicates her performance is acceptable, or even stellar.

Jane becomes disgruntled about losing her job, and hires an attorney. Although you had no discriminatory motive to fire her, it’s now your burden to prove she was fired for some reason other than her gender/age/race/ethnicity. Your records, including this evaluation, can either help or hurt you.

What if in your case, in your own words and in writing, you gave Jane a favorable “98%” for overall performance or an A? Great job!  But now that you had to terminate Jane for the 2% of her performance that was just awful, you still have that nagging document in her record that actually says she is an overall good employee.  Her attorney would love to call this, “Exhibit A” in her case against you. This is why assigning an overall grade is not good practice.  You might think you’re being nice or that they will like you more by not mentioning the negatives, especially if it wasn’t that big of a deal up to now, but something like a tendency to gossip or being late occasionally can quickly lead to a problem big enough that you will need to let that employee go.  And your protection lies in having clearly documented that issue.

What is the Best Practice for Employee Evaluations?

Create a policy and follow it. Make sure it is worded properly in your employee handbook.  Again, make sure that you don’t give an overall average grade or make overly general comments.  An employee can be doing fantastically at answering the phones and need a little improvement in cooperation with the team, all in the same evaluation. Just grade each component separately and specifically.  Don’t be afraid to add notes and more specific comments to the file.  For example, say “Great at following required scripts with callers, but needs to work on sounding cheerful with every caller.”  Or, “Often willing to help out other team members, but reluctant to stay late or work through breaks when needed.”

Employee Self evaluations can also be a great tool

Give them the form and ask them to take 30 paid minutes to fill it out and then give it back to you. It can open the doors for discussion, especially if your employee is open to hearing ways they may improve. We recommend that you also do your own evaluation of the employee so that there is a record of any difference in opinion. You may be able to use the difference in a constructive way to point out blind spots or to address where you see the need for improvement.

For Example: A conversation about “completing work on time” leads to discussion of unauthorized overtime.
“I see that you scored yourself satisfactory in the area of “completes work in a timely manner.” I have to disagree with you. I did note you are having trouble getting your work area cleaned up at the end of the day. This is causing you to get into overtime almost every week. What can we do to support you in not letting that happen anymore?” Make notes about this issue and the employee’s response.

Employee Evaluations are not a replacement for Corrective Action notices.

If you want more info on Corrective Action notices, download the Toolkit by filling out the form on this page or within our website. Like this guidance, it will not bite!

It is okay and even desired for you or a manager to be able to bring a level of positive thinking and comments to each evaluation.  However, remember that if you have an employee that needs to immediately improve or correct a behavior, the evaluation is not the best place to effectuate that kind of documentation and change.  You shouldn’t wait for evaluation time to document performance problems.  Using Progressive Corrective Coaching on an ongoing basis to address negative performance with every employee makes it easier to except constructive criticism as an opportunity to improve.  It also will make evaluations go a lot easier when the time comes because you can focus on where they have improved, or still need improvement, or where they are doing well, but you know that the negative issues have already been covered directly and clearly.

If you don’t want to do employee evaluations:

• Make sure your handbook doesn’t say you will do them regularly;
• Never do them with some employees, or one employee, and not others; and
• Don’t use them in place of disciplinary action (use Progressive Corrective Coaching instead)
• If you want to use evaluations:
• Make sure your handbook gives you flexibility, discretion, and clarifies whether a raise will be considered in conjunction with them;
• Do them with every employee in a consistent way;
• Don’t use a format which adds up all the categories and creates an overall score of the employee’s performance in general; and
• Don’t use them in place of disciplinary action (use Progressive Corrective Coaching instead).

This is general Guidance and not legal advice. If you feel you need expert guidance you may contact CEDR or in the instance of legal advice, contact your attorney. Click here to download a Employee Performance Evaluation Form

Let us help you.  Take this code with you,  2011EVAL and enter it in the shopping cart.  It will waive our entire $299 Handbook Evaluation Fee. Learn more about the evaluation and enter the code here. Contact us at 866 414 6056 with questions.