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Today’s workplace looks a lot different than it did 50 years ago. In the past, it was not uncommon for employees to work at one company for most of their adult lives and retire with a pension plan. Employee loyalty wasn’t just practiced; it was ingrained in the work culture.

We can’t say the same for today’s work culture, where change is the new norm and expected. And, there are a couple of good arguments for changing jobs, one being that people who changes jobs can get a raise of 10 – 20% just by switching to a new company. What’s worse is that employees who stay in companies longer than two years get paid, on average, 50% less. How is it fair to those who are loyal to make less over the course of their lifetimes?

The problem begins with the failure to recognize performance and reward it accordingly, and the solution begins with effective employee evaluation.

John Bersin, a contributor on Forbes.com, wrote a great article on performance reviews and what needs to change. For one, Bersin writes:

“Managers cannot typically ‘judge’ an entire year of work from an individual at one time (imagine if your spouse gave you an annual review!), so the annual review is awkward and uncomfortable for both manager and employee.”

Other reasons employee evaluation needs to change according to Bersin include:

  • Once-a-year feedback is useless. To really succeed, employees need regular, consistent feedback in a constructive setting.
  • Feedback needs to come from multiple people, including peers, and not just a manager.
  • Poor performance should be addressed when it happens, not at the end of the year.
  • Positive, constructive feedback is crucial to high performance and the current “appraisal” process doesn’t support this.

So, how do we create effective employee evaluation programs? By revamping the entire program into something that will drive efficiency, create opportunities for improvement and make employees happier, leading to employee loyalty.

Here are 7 tips for creating an effective employee evaluation program.

  1. “Develop a ‘feedback-rich’ culture.” Encourage your employees, staff, managers, etc. to provide constructive feedback on a regular basis.
  2. Allow employees to create their own goals and adjust them as necessary. A big part of employee growth is allowing them to set their own goals, but have managers give feedback on a regular basis. Resetting them can be important, too.
  3. Bersin says to “separate the discussions about performance from discussions about potential and future career plans.” There is a time and place for talking about raises, but certain evaluation discussions should not include them.
  4. Managers need to be able to “assess performance regularly” so that they can give feedback on a daily or weekly basis. Provide them with the tools they need to accomplish this.
  5. Focus on producing great talent and not just output. Companies who help their employees grow will thrive.
  6. Instead of assuming a percentage of employees will perform poorly, use assessments to determine if the individual is in the right position or needs guidance on how to succeed. Investment in employees will encourage them to stay.
  7. Invest in an employee evaluation software. Instead of trying to manage and organize all of this feedback yourself, invest in a system that has preset reminders, user portals, tools for creating professional development plans and more.

Interested in creating an effective evaluation program in your organization? Request a free trial of Standard For Success, an employee evaluation software that streamlines employee evaluations in order to drive improvement and organizational efficiency. Our software collects data in a meaningful way to collect data that will drive results.

The best part? Over the past 3 years, we’ve been able to maintain an excellent client retention rate due to our superior customer service. Request a Free Demo of SFS

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