Performance Reviews: Tips for Effective Appraisals

Performance reviews often seem like a mandatory exercise that provides little value to the employee or employer. However, a well-conducted performance review benefits both by improving communications and the employee’s effectiveness. If you need to fire an employee, performance reviews can provide important protection if the employee challenges the termination.

Effective performance reviews improve communication on many levels. First, performance reviews provide an opportunity to formally assess and communicate the employee’s contribution to the organization and identify his or her strengths and weaknesses. It’s a great time to discuss and rectify poor performance as well as acknowledge and congratulate strong performance. It’s also the appropriate time and setting to give salary raises and promotions or demotions where warranted. Finally, the review also allows you to realign the employee’s goals and responsibilities with the company’s overall objectives. Remember the following when conducting reviews:

by Karen Greenwood, NFIB Legal Foundation

Full Story; http://www.nfib.com/object/IO_25543.html

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Forget Money, Focus on Praise

by John Tschohl

Motivating Employees is Crucial

A motivated employee is a productive employee, and productive employees can do wonders for a company’s bottom line. They provide exceptional customer service, which creates customer loyalty and results in increased sales. They also stay with the company longer, which decreases the costs of hiring and training new employees.

Unfortunately, many companies focus more on maintaining their equipment than motivating their employees, says John Tschohl, founder and president of the Service Quality Institute in Minneapolis, Minn. And often, those who do attempt to motivate their employees do so with money.

Money, however, is not a motivator. “There is little correlation between pay and performance,” Tschohl says. “Recognition is much more effective. People have an incredible need for recognition.”

Full Story: http://www.nfib.com/object/IO_25527.html