Make the most out of employee performance evaluations
Companies that focus on their people’s performance are 4.2 times more likely to outperform their competitors, according to studies by the McKinsey Global Institute (MGI). That means higher revenue growth and lower turnover rates.
In addition, MGI’s look at 50 companies’ performance management practices concluded that companies that focus on their people and organizational health also reap dividends in culture, collaboration, and innovation, as well as sustained competitive performance.
Evaluate and encourage
Performance evaluations are a valuable tool for managers to both assess and encourage employees, and to address any workplace issues. They should let employees know how they’re doing, what they can improve, and acknowledge superior job performance. They should also allow employees to share their struggles and have input into developing goals.
The process of conducting performance evaluations varies depending on a company's policy and culture. Some companies have formal performance review programs, while others have a policy of open communication. Both methods should cover any performance-related issues that arise.
Strong performance evaluations:
- Define job-related expectations;
- Assess performance against expectations using observable behaviors or outcomes; and
- Provide written documentation that supports the conclusions reached.
Evaluations should be conducted by individuals who are knowledgeable about the role and able to make informed assessments based on real work conditions, rather than assumptions or isolated incidents. That means supervisors should base evaluations on regular interaction and documented feedback gathered throughout the review period.
A living document
One common challenge with performance reviews is that they’re completed and then forgotten. To avoid this, evaluations should be positioned as a reference point for ongoing coaching; not the end of the conversation.
Evaluations may be used to decide whether training or corrective action has been effective and whether more support is needed. Similarly, managers should revisit performance goals during check-ins, tie them to development conversations, and use the evaluation as a living document that spells out? future expectations.
To make sure evaluations are constructive, it’s important to pair clear expectations with a support plan. This includes showing specific areas for improvement, explaining why those expectations matter, and outlining what resources, training, or coaching will be provided.
Evaluations should do more than find gaps; they should help determine what comes next and how the organization will support improvement. In practice, this means documenting next steps, timelines, and follow-up discussions, so employees understand both what’s expected and how they will be supported in meeting those expectations.
Ask the right questions
While the specifics depend on position and job duties, here are 10 questions that can be used to get the ball rolling in a performance evaluation:
- What accomplishments in this review period are you most proud of?
- What tasks or responsibilities have been most challenging for you?
- Can you share examples of situations where you felt you performed particularly well?
- Are there areas where you believe your performance could have been stronger?
- Have expectations been clear, and where could they be clearer?
- Were there times when you felt unprepared to perform a task? If so, why?
- What additional training or resources would help you perform your job more effectively?
- What specific goals should we set for the next review period?
- What support, training, or tools will help you achieve those goals?
- How will we measure progress and success?
Key to remember: Performance evaluations should clearly set expectations, use documented, observable feedback, and serve as a foundation for ongoing coaching, goal setting, and support. They should be more than a one-time conversation.























































