Tips for Performance Appraisal

Provided by Solutions Consultant and BizMantra
To minimize exposure to employee litigation, employers should develop a checklist of items that are necessary for the enforcement of fair, consistent and legally sound performance appraisal systems.

Apprise employees of performance standards in advance. When a new employee is hired or when new standards are adopted, supervisors should amend job descriptions and performance evaluation forms and copies should be given to all affected employees.
Document all performance problems regularly on appropriate appraisal or progressive discipline forms. Provide the employee with a copy immediately. A precise format for conducting an evaluation leads to more thorough, accurate recording of information. Informality, on the other hand, may lead to claims of discrimination.
Provide employees with relevant feedback. Vague, generalized or subjective evaluations may lead to litigation.
Promptly evaluate nonproductive employees. When managers tolerate an employee with a performance problem for months and then suddenly give him/her a negative evaluation and terminate him/her, the employee may claim that the action was arbitrary or discriminatory and may be able to show that no opportunity for improvement was given.
Give the employee an opportunity to comment on or dispute the performance appraisal. This will support the fact that you provided the employee with notice.
Train supervisors how to evaluate employee performance and how to administer the company's appraisal system.
Establish a review audit system to prevent manager bias or personal feelings from impacting on the appraisal.
Develop written policy statements approving only a specified procedure for conducting appraisals.
Document through performance files as well as job-related testing, rating systems, appraisal forms and signed memoranda.