Evaluating employee performance (compensation)

EVALUATING

EMPLOYEE PERFORMA

NCE(Paul J. Jerome)

•Prepared by: Ancel Lopez & Nielzen Joy Melo

The Performance Management Cycle

coaching

evaluating

planning

The Performance Management Cycle

Planning phase

•Position description : define the responsibility of a job and include evaluation measurements•Performance Objectives: define individual objectives for which the employee will be held accountable, in addition to the Position Description•Performance action Plan: explain how these objectives will be achieved.

The Performance Management Cycle

Coaching phase

• The agreed upon performance plans are implemented here

The Performance Management Cycle

Evaluating phase

• Throughout the process you’re also documenting how your team members are doing

Purpose of Performance Evaluation

•Provides a way to describe your team members have performed on the job, and how they improve their performance in the future so that all will benefit.•It also provides opportunity to mutually develop work objectives and ways to achieve them•It provides documentation to support all personnel decisions (e.g., promotions, salary adjustments, terminations, etc.)

Types of Performance Evaluation

• Introductory Performance Evaluation• - conducted between 1 to 6

months after an employee ‘s hire date to determine if the employee is a match for the job.

• Annual Performance Evaluation• - are what everyone usually

get so worked up about. This formal annual documentation of performance highlights or lowlights strongly influences personnel decisions and ends up in a special employee file.

Types of Performance Evaluation

•Special Performance Evaluation•- similar to annual performance, except they’re conducted to an “as-needed” basis at the request of the teal leader or member. Usually these evaluations support employment status changes.

•Corrective Actions•- often called “reprimands”, these evaluations are a form of progressive discipline.

Types of Performance Evaluation

• Feedback Sessions• - an informal evaluation of

on-the-job performance that take place during the day-to-day coaching process between team leaders and members.

• Status Reports• - periodic (e.g., weekly,

monthly, quarterly) progress reports that are typically submitted to management to document key individual and team performance highlights.

Benefits of EEP

•Performance will improve by redirecting undesirable behaviours through constructive feedback, and can be maintained and leveraged by reinforcing desirable behaviours through recognition and rewards.•Provides an opportunity to build strong working relationships between you and your team members•Team members’ roles and responsibilities can be clarified, esp., those areas you consider strengths or those that need improvement.

Benefits of EEP

•Plans can be created to develop team members’ performance in current assignments and prepare them for additional assignments•finally, performance evaluations become historical documents that can later support personnel decisions (e.g., promotions, demotions, transfers, compensation adjustments, terminations, etc. )

Performance Evaluation Model

Collect and select

Describe and document

Develop and review

Conduct and summarize

Collect and select

•Gather information from as many resources as necessary •Brainstorm descriptions of performance •Choose substantive data to record

Describe and

document

•Describe performance with “the write stuff”•Connect behaviours, impacts, and examples following “the 2.5 rule”•Fit descriptions into your form

Develop and

review

•Identify opportunities for employee growth•Draft employee development profiles to enhance performance•Seek support from your organization

Conduct and

summarize

•Create a comfortable environment•Share highlights to build understanding and appreciation•Finalize commitments and collaborate toward mutual goals

Corrective Actions

•Corrective action must be uniform and progressive, so that all employees in an organization know what to expect•Also known as ‘discipline’

Standard process for Corrective

Actions

• Step 1 Verbal Counseling• Step 2 Verbal Warning• Step 3 Written Reprimand• Step 4 Suspension (optional)• Step 5 Termination

Step 1: Verbal Counseling

• First, describe the “Areas of Needed Improvement” --- what your team member is doing, the undesirable impacts from his behaviour, and examples.

• Next, discuss alternative behaviours for the employee, you, and theirs to take to redirect his current behaviour and reach desirable results. Solicit and respond to your team member’s concern and suggestions.

• Last, summarize key steps for you and your team member to take, and schedule a review session.

• Follow all the suggestions in step 1. Then inform the team member that due to unrepeated undesirable behaviour.

• Ask the employee for any reasons for the lack of behavioural change.

• Note the dates, times, and key discussion points of this meeting in your own file. Offer a copy of your notes to the team member. Give a verbal update to the next level of management and Human Resources.

• Your verbal and written communications should mirror one another.

• The performance evaluation you write should have “2.5 rule” descriptions of team members’ behaviour.

• Follow all the suggestions in Step 1 and Step 2. then develop a written reprimand with the assistance of the next level of management and Human Resources.

• Following a lack of improvement and/or serious allegations (e.g., accusations of theft), the employee may be suspended from work without pay as disciplinary action, to allow for further investigation.

• This step is usually approve by HR in advance, and involves organization-specific steps, considerations and forms.

• Always consult to a senior management, HR, and legal counsel before proceeding with a termination of employment.

• Again your organization will have specific steps, considerations, and forms. Follow them.

• Performance Evaluation is... An ongoing, interactive process, not a form of an annual meeting

• Focused consistently and objectively on performance behaviours, not the person

• A shared and participative process of documenting past performance and exploring future potential.

• A helpful and necessary tool to reinforce or redirect performance

END

•NOW WE KNOW!!!!!!