Assessment tools: steps to properly assess your employees

Written By Steps To Faculty Published May 22nd, 2010

If you are starting up a business, you need to have the proper assessment tools in place that will allow you to measure employee performance so that you keep the right people in place and let go of those who are not helping your business. The only way to make your way is to formulate the tools that will allow you to quickly identify who you want to stay and who you want to go. Once that is figured out, the rest becomes easy.

Step 1 formal feedback is the key to everything

Informal feedback is wonderful because it allows managers to correct problems as they arise from day to day; people are human and human beings are going to make mistakes. However, informal feedback is usually geared towards addressing a specific problem and does not have the same significance to employees that a formal evaluation does. For that reason, it is always a good idea to schedule formal sit-down evaluations with employees on a regular basis – maybe every six months or quarterly.

Step 2 know what your organizational goals are

It is important to know what you want to accomplish as an organization: what are your profit goals for the year? What sort of market share are you looking for? What sort of brand are you trying to build? When you know what your organization wants to achieve and when you have measurable goals in place, the next step is to come up with employee performance benchmarks that will help you achieve your organizational objectives. A good way of looking at this is as follows: how much product or sales do your employees have to produce each day, each week and each month for company revenue goals to be reached? What quality benchmarks do employees have to reach in order to ensure that the company reaches its quality assurance goals? And what behaviors from employees – punctuality, safe operation of machinery – are demanded if the company is to keep overhead costs down?

Step 3 rank employees to avoid central tendency error

When employers use ranking scales, they often rank employees in the middle to avoid having to give people failing grades. The key to overcoming this is to rank employees from number one to last; not everyone can be “average,” so this forces the identification of people who are not doing their jobs effectively (for a good overview of central tendency error, please see Indiana University, 2007). When you rank people relative to other people in the organization, you are better able to make hard choices about who is doing the job – and who is not.

In all reality, proper assessment is one of those things that distinguishes good businesses from bad businesses and great businesses from everybody else; if you want to build a business empire, then you have make assessment easy to use, easy to understand, and as unbiased as possible. The steps above can certainly help you move in the right direction.

Works Cited
Indian University. (2007). Evaluate job performance. Retrieved May 21, 2010 from

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