How Often Does Your Organization Conduct Performance Evaluations?
How Often Does Your Organization Conduct Performance Evaluations?
Upper Saddle River, N.J. - April 2004 - Throughout March, Compensation Resources, Inc. (CRI) surveyed 571 companies to obtain data on the number of times an organization conducts performance evaluations throughout a fiscal year.
In comparison to the data collected on this topic in April 2003, the results showed very similar trends. This March, our survey showed that 63% of the respondents indicated they conduct performance evaluations once per year. Likewise, in 2003, our survey showed that more than half of the companies (57%) were also conducting performance evaluations once per year. Similarly, 16% of the 2004 and 17% of the 2003 respondents indicated they conduct performance evaluations two times per year. For purposes of trending comparisons for both years, the results are as follows:
Background Information Regarding Performance Evaluations
The information provided through a Performance Evaluation will significantly enhance management effectiveness in making decisions that influence the direction and coordination of human resources. Therefore, a primary objective of any business is to ensure the existence of an effective, accurate, and continuous appraisal process for gathering, analyzing, and disseminating information about the performance of its employees.
To ensure productivity and high levels of performance among all employees, CRI recommends that management conduct performance evaluations bi-annually: one during mid-year (interim) and the formal performance evaluation at year-end with each review taking into consideration different performance factors. The interim review is generally more employee-driven; it reviews the performance to date, makes any necessary adjustments and is focused more on employee development. The formal performance year-end review should be used to evaluate the employee level of goal achievement, determine annual performance, assign an overall performance rating, and serve as the basis for any compensation action at that time. With respect to new hires, CRI recommends a performance evaluation after 90 days, to ensure employees understand their job functions and expectations. Tasks or goals should then be established for the rest of the year.
It is important to remember that a performance evaluation is a process, not an event. While the formal performance evaluation may occur once a year, assessment and coaching must be continuous. Informal feedback and counseling should be the basis of much of the performance evaluation process during the year.
