How to build an effective performance evaluation system

A performance evaluation system is a bit like the dentist’s wheel. Everyone knows it’s ultimately a good thing for all parties included — yet no one is too eager to face it.

You may have heard of many performance evaluation examples that failed to make a dent in an employee’s progress. In fact, according to Gallup, only 14% of employees strongly agree their performance reviews inspire them to improve. This can be because these evaluations offer no actionable results. Or because of the lack of more informal, frequent feedback throughout the year leaves employees jaded.

In any case, 14% is not good. Not for the employees, not for you (who spend all this time evaluating everyone) and not for the company.

Having an effective performance evaluation system in place can really make a difference. It improves team communication; it motivates your employees to keep striving for excellence; it facilitates overall growth. An effective system also helps weed out any “bad apples” faster — before their poor performance or behavior affects the whole organization.

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