Performance evaluations or performance reviews are used to monitor employee growth and satisfaction as well as to express company needs and objectives for the upcoming year. The purpose of a performance review is to provide an opportunity for employees to develop through professional activities, open a regular and meaningful conversation between the company and its employees, and identify documented performance plans.
Through a formal outlining it will help your company align their employees, resources, and systems to meet their strategic objectives. Employees who set their own goals and have a better understanding of them for their job performance policy tend to have a greater sense of ownership for and commitment to achieving them than do those whose goals are simply imposed from above.
Every company's performance evaluation and review process is different. How often and in what format you conduct your reviews is specific to your organization, so it's helpful in your policy to include an overview of each type of appraisal and how often employees should expect to evaluate their job performance. Included in this policy are two types of reviews.
You can build out your own performance evaluations using our 5 Templates for Performance Reviews as a start.
Special performance reviews are an informal opportunity for the Department Managers to commend employees or teams for their performance results. These performance evaluations may be held in person or in writing. The purpose of special performance reviews is to issue a one-time reward to employees who have been ‘exceptional’ in their departments. For example, if an employee works as part of a team and exhibits more than what is required from them, a special performance review may take place.
‘Exceptional’ employees perform additional duties, set positive examples for others, and regularly exceed company targets. If an employee demonstrates the exceptional standard by:
Special performance reviews may result in the award of a one-time bonus. These reviews differ from Annual Performance Reviews, as they do not take place at regular intervals. Special performance reviews, and the associated bonuses, are limited to once a year. The Executive Director of the company is responsible for reviewing the work of all supervisors. Work reviews for other staff are the responsibility of the appropriate supervisor.
For more information about one-time special performance bonuses for employees, see the One-Time Bonuses section of the employee handbook.
Annual performance reviews are a formal opportunity for Department Managers and employees to exchange observations about the working relationship over the previous year. These performance reviews must be held in person and documented in writing. The purpose of the review is to have an open and honest discussion regarding employee and department performance.
During the annual performance review, the Department Manager is expected to evaluate the standard set by the prior year, set goals for the oncoming year, and determine whether an employee has earned an annual bonus. Department Managers are expected to review the quality of an employee’s performance, attendance, dependability, and attitude. Employees may make suggestions for improving the working relationship. The needs of the company must be communicated clearly by Department Managers and other supervisors.
In preparing for the review meeting, employees should understand that their Department Manager may review documentation and notes of past performance discussions, performance expectations based on the job description, records of compliments and complaints made for/against the employee in the previous year, and sample work products from the employee.
For more information about annual bonuses for employees, see the Annual Bonuses section of the employee handbook.
Disclaimer: The PeopleGoal Policies are general templates and should only be used as a basis for company policies. Please take into account all local, state, and federal laws when drafting your company’s final policies. This is not a legal document or a contract, and PeopleGoal will not assume any legal liability associated with the use of this document.