Do Employees Measure Up? A formal review system will help you evaluate their performance.
Everybody who works for you needs to know where they stand andhow they are doing compared to your expectations of them. Manycompanies have formal review systems to let employees know howtheir performances stack up. Reviews may be conducted as often asevery three months, but annual reviews are most popular. Eachreview should go over the goals that were set when the employeestarted the job or during the last performance evaluation. Then thereview should examine how well the employee has done towardreaching these goals. The employee should be asked to rate his orher performance, in addition to relying on objective measurementssuch as sales figures. You and the employee should then discuss thedesirability of trying to reach goals that haven't yet beenachieved, and you should both set goals for the future.
Excerpted from Grow Your Business