The Essential Cornerstones of Every Performance Management System
How to Conduct Terrible Employee Evaluations:
The Essential Cornerstones of Every Performance Management System
2025 Issue 3 | GearedUp
46
If your club is anything like most other employers, the most dreaded words in the English language are,“ It’ s time to do performance evaluations.” Employees typically don’ t like receiving them, and managers typically don’ t like conducting them.
According to a recent survey by Willis Towers Watson, only 26 % of North American organizations reported being effective in managing employee pay and performance. Poor performance management hurts company operations and can have significant legal consequences. If performance management is so important, why is it done so dreadfully? Too often employers make the same fundamental mistakes.
MISTAKE NO. 1: Failure to Plan
Too many employers consider performance management a one-time meeting at the end of the fiscal year during which the manager and the employee share a cup of coffee( either in person or virtually) and discuss the past year in very general terms. Effective performance management requires goal setting, ongoing monitoring and year-end feedback with tangible examples of successes and improvement opportunities. The process should be transparent to employees and consistent from year to year.
Key Points:
• Develop an annual timeline with designated periods for goal-setting, mid-year checks and year-end evaluations.
• Educate your managers on the importance of effective performance management to make it a priority rather than a bureaucratic task.
MISTAKE NO. 2: Failure to Set Meaningful Goals
Unfortunately, many managers simply copy over the previous year’ s goals, or they don’ t create specific objectives at all. In some cases, all employees have identical goals. Quite possibly the most important aspect of performance management is setting effective goals at the start of the performance period designed for individual employees. Goals should be relevant to the overall business objectives and result in meaningful development for the employee. The goal should be collaboratively developed and be S. M. A. R. T: Specific, Measurable, Achievable, Realistic, Time-Bound.
Key Points:
• Develop unique goals at the start of the planning year.
• Tie goals to either the club’ s objectives or career development criteria( or both).
• Train managers on how to set appropriate goals.
MISTAKE NO. 3: Failure to Monitor
One of the most common criticisms employees have regarding performance evaluations( especially when the evaluations have negative comments) is that the employees claim they were“ surprised” or“ didn’ t see it coming.” Another common criticism is that the manager only focused on the last month of performance, rather than the entire year. A designated mid-year check can help to reduce or eliminate this concern. The feedback can be informal throughout the year, but a formal and documented mid-year year check is often best. A mid-year check by J. Hagood Tighe gives both the employee and the manager an opportunity to track progress and make suggested adjustments if performance is not on track.
Key Points:
• Document comments and status check, including positive and negative feedback.
• Managers should strive for consistent feedback for all direct reports.
MISTAKE NO. 4: Fail to Assess Actual Performance
Weak managers often struggle with providing clear, objective feedback during the annual review. Too often they focus on either one key success or failure and make the entire review a rehash of that specific event. An effective review should entail a review of the goals and the employee’ s performance in meeting those goals. It is essential that the manager have objective criteria that support their assessment, not just vague impressions or“ gut feelings.” The best reviews are often two-way conversations highlighting both successes and improvement areas.
Managers need to be especially careful to avoid unconscious biases in their evaluations. The“ Halo Effect” can come into play if a manager thinks an employee is a strong performer and thus tends to minimize shortcomings or failure to meet goals and objectives. On the flip side, the“ Horns Effect” occurs when a manager lets a single negative impression about a person override any positive outcomes the person may have achieved over the course of the year.
Key Points:
• Managers should focus on objective results, not subjective impressions.
• Consistency is essential both over time and among different employees.
• It is essential to document the year end performance meeting, especially if opportunities for improvement were discussed and reviewed with the employee.
MISTAKE NO. 5: Fail to be Honest and Appropriate
Being a manager means that you must be capable of providing honest feedback. It is not always easy. It is easier( and more fun) to be friends with employees. But that is not the job. Honesty is