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Glossary Terms
Glossary of Human Resources Management and Employee Benefit Terms
Table of contents

Employee Performance Evaluation

Employee performance evaluation is a key function of human resource management. It is important to note that for the evaluation to be effective, it should be fair, transparent, and consistent, with clear communication between the evaluator and the employee. This helps in maintaining a positive work environment and fostering professional growth.

What is an employee performance evaluation?

An employee performance evaluation is a systematic process where an organization assesses an employee’s work performance over a specific period. It involves setting clear performance expectations, monitoring progress, providing feedback, and identifying areas for improvement and professional development.

What is the purpose of employee performance evaluations?

The purpose of evaluations is to align individual performance with business goals while encouraging growth and accountability. It also improves communication and future planning.

  • Clarifies job expectations and standards
  • Identifies high performers and underperformers
  • Helps in succession planning and development strategies
  • Offers documentation for HR records and legal compliance

Why is employee performance evaluation important?

Performance evaluations provide insight into employee contributions and help managers make informed decisions. Without evaluations, businesses risk misalignment and low engagement.

  • Encourages continuous improvement and growth
  • Supports fair decisions in pay, promotion, or restructuring
  • Boosts employee morale through recognition
  • Helps retain top talent by showing appreciation

When should employee performance evaluations be conducted?

Evaluations should be done at set intervals to maintain consistency and timely feedback. Timing depends on the company’s policy, role type, and performance issues.

  • Annually or biannually for most roles
  • At the end of a probation period
  • Before promotions or pay raises
  • After major projects or performance concerns

Who conducts employee performance evaluations?

Managers, supervisors, or team leads typically carry out performance evaluations. HR may support by offering tools, checklists, and compliance oversight.

  • Direct managers familiar with the employee’s role
  • HR teams for alignment and process consistency
  • Peer evaluators in 360-degree feedback models
  • Self-evaluations to encourage personal reflection

Where do employee performance evaluation examples come from?

Examples can be found in company templates, HR resources, or online tools. These examples help guide the language and structure of effective evaluations.

  • Company-provided evaluation forms
  • HR training platforms and toolkits
  • Industry-specific performance review samples
  • Leadership courses or development workshops

What to say on employee performance evaluation?

Use specific, constructive, and balanced language. Highlight strengths while addressing areas that need improvement without being overly negative.

  • “Consistently meets deadlines and project goals”
  • “Demonstrates leadership and team support”
  • “Needs improvement in communication and task prioritization”
  • “Shows creativity but must improve consistency”
  • “Excels in meeting KPIs and client satisfaction metrics”

What are key performance indicators in employee evaluation?

KPIs are measurable goals used to evaluate job performance. They should align with role-specific responsibilities and company objectives.

  • Sales numbers, revenue impact, or customer satisfaction
  • Project completion rate or task accuracy
  • Attendance and punctuality
  • Efficiency in meeting deadlines
  • Quality and consistency of work output

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

What are the best practices for employee performance evaluation?

Best practices ensure evaluations are effective, fair, and motivating. Reviews should promote trust and development rather than fear or formality.

  • Be clear, specific, and evidence-driven
  • Use predefined evaluation criteria and goals
  • Provide both positive and improvement-focused feedback
  • Allow employees to self-reflect and respond
  • Focus on future development and SMART goals

What are some examples of employee performance evaluation phrases?

Phrases help frame feedback in a clear and professional tone. Use a mix of positive, constructive, and improvement-focused examples.

  • “Takes initiative and completes tasks independently”
  • “Needs to develop better conflict resolution skills”
  • “Works well under pressure and adapts quickly”
  • “Should seek more clarity before executing tasks”
  • “Supports team members and fosters collaboration”

What is included in an employee performance evaluation checklist?

A checklist ensures nothing is overlooked and that evaluations remain consistent across departments. It helps structure the review process.

  • Review of past goals and KPIs
  • Assessment of core competencies and behaviors
  • Feedback from peers or previous reviews
  • Future goals and career development plans
  • Employee comments and acknowledgments

What are the benefits of employee performance evaluation?

Regular evaluations benefit both the individual and the organization by encouraging growth and aligning goals.

  • Builds transparency and accountability
  • Encourages skill development and training needs
  • Identifies leadership potential and promotion opportunities
  • Improves communication and manager-employee relationships
  • Helps set and track measurable goals

What are some negative employee performance evaluation phrases?

These phrases should be constructive and solution-focused. Avoid harsh language and instead guide improvement with clarity.

  • “Needs improvement in meeting deadlines consistently”
  • “Struggles with prioritizing workload effectively”
  • “Lacks attention to detail in final submissions”
  • “Reluctant to accept feedback or collaborate with peers”
  • “Shows limited initiative in handling new tasks”

How to complete an employee performance evaluation?

Completing the evaluation requires input gathering, analysis, and thoughtful communication. It’s a collaborative, two-way process.

  • Collect performance data and supporting documents
  • Fill out standardized review forms or templates
  • Write clear comments for each performance category
  • Meet with the employee for discussion and feedback
  • Finalize the evaluation and share a copy with HR

How to perform employee evaluation?

Evaluating performance requires structured preparation, honest feedback, and consistent criteria. It’s important to remain objective and supportive throughout the process.

  • Review job descriptions and KPIs
  • Gather input from peers, self-assessments, and prior evaluations
  • Provide evidence-based feedback
  • Focus on outcomes, behaviors, and improvement areas
  • Schedule follow-ups to measure progress
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