Performance reviews: Cut liability, add punch to annual chore

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in Firing,HR Management,Human Resources,Leaders & Managers,Management Training,Performance Reviews

Your performance evaluation system probably isn't "meeting expectations" and may "need improvement."

One of the biggest problems: grade inflation. Managers routinely give employees higher marks than their performance warrants. As a result, companies struggle to justify firing an employee who appeared to be performing well on paper.

Bottom line: If your managers think of performance reviews as an annual exercise in shuffling paper to justify raises, promotions or layoffs, you've got a lot of work ahead.

Dump 'Lake Wobegon' effect

Your business isn't located in the mythical town of Lake Wobegon, where "all the children are above average."

Fair and accurate performance ratings help you document poor performance well before you fire an employee, and also give the worker a chance to improve. That's important for productivity and morale, as well as your defense in court.

Stick to facts

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