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Employee Appraisals

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Employee performance appraisals are important tools for small and growing businesses. The appraisals can be crucial in developing employees, reinforcing good performance, and pointing out areas of improvement. Appraisals provide an opportunity to formally communicate expectations for future performance. They also create a record of steps taken to remedy bad or inadequate performance.

Yet many businesses dread doing appraisals or do an inadequate job of giving them. Here are some tips for strong performance appraisals:

  • Convey the good and the bad concerning past performance
  • Set clear goals
  • Outline areas for improvement
  • Give detailed feedback — vague generalities don't help the employee
  • Set new goals
  • Establish procedures for ongoing feedback — not just once or twice a year through a formal performance appraisal process

Solid documentation — such as performance appraisals showing poor performance — is useful evidence should you get involved in a lawsuit with the employee over what you felt was a justified firing.

Click here for a sample Employee Appraisal Form.

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