I don't like the idea of traditional performance evaluations. Most managers don't like to give performance evaluations — and most employees don't like to get them — because they seldom identify the real issues. For a practical checklist to prepare for reviews, see Preparing for Your Annual Performance Review.
Why traditional reviews fail
- They have a poor boss. Remember, half of all managers are above average, while the other half are below average. What's the value of a performance evaluation from a below average manager?
- The reviews are seldom honest. Because no one wants to offend anyone else we rate toward the comfortable middle or, if there's a "let's get rid of them" agenda, the performance appraisal gets manipulated toward the low end.
- The Peter Principle. The person was moved into a new role (whether through hiring, transfer, or promotion) for which they lack the requisite skills or training. They have the desire, but not yet the ability. Whose fault is that?
Even though there are other difficulties associated with the traditional performance appraisal process, many small to mid-sized companies still conduct them. If you want practical resources on managing staff and responsibilities, see CompleteMarkets.
Alternatives and best practices
- Make sure you have crystal clarity about what constitutes good performance - in terms of quality and quantity.
- Allow the employee to own the performance benchmarks.
- Provide as much feedback as possible on these benchmarks.
- Catch problems early.
- See where the "system" might be hampering performance.
- Think of yourself as more of a coach than a manager.
- Seek anonymous feedback of your staff and other managers. If you truly want to be a good manager, you need 360° input. Solicit it and take any judgment as a gift.
This last option—terminating employees who can't meet benchmarks—is the trickiest because it involves more emotion than any of the others. Nobody likes to end a relationship, even if it's a bad one, but if the process has identified shortcomings without surprise there should be less regret on your part. If you need help implementing these practices, talk to an agent.
Frequently Asked Questions
How often should managers give feedback?
Regular feedback is best—short check-ins weekly or monthly keep performance issues small and prevent surprises at annual reviews.
What can reduce bias in appraisals?
Use clear, measurable benchmarks and gather 360° input so assessments rely less on a single manager's opinion.
How do you handle skill gaps discovered in an employee?
Offer targeted coaching or training and set measurable improvement goals before considering role changes or termination.
When should a manager move from coaching to termination?
If reasonable support and time fail to produce the agreed-upon improvements, termination may be necessary to protect team performance.