10 Performance Evaluation Mistakes that Hurt Your Workplace–And How to Fix Them

Performance Review Best Practices for HR Professionals

Performance evaluations. Just the words themselves can cause a mix of emotions, from mild apprehension to full-blown anxiety, for HR professionals, managers, and employees. But here's the thing: they don't have to be a source of stress. When done right, performance evaluations are a powerful tool for growth, development, and building a stronger, more engaged team. Unfortunately, many organizations fall into common traps that undermine the entire process. This may be why a Gallup poll found that only 14% of employees strongly agree that their performance reviews inspire them to improve.

But we’re here to help. Express Evaluations is passionate about helping small to medium-sized businesses nail their performance reviews, and this post is your guide to avoiding the most frequent evaluation pitfalls. 

Mistake 1: The Recency Bias Trap 

We've all been there. It's evaluation time, and the most recent successes (or failures) are top of mind. This is called recency bias, and it can seriously skew your perception of an employee's overall performance. While recent performance is important, it shouldn't overshadow the entire year's contributions.

The Fix

Implement a system for regular performance tracking. This could be as in-depth as a performance management software program like ours or as simple as a shared document where managers jot down key accomplishments, challenges, and observations throughout the year. Encourage regular check-ins (more on that later!) to discuss progress and provide real-time feedback. This way, the evaluation becomes a true summary of ongoing performance, not just a snapshot of the last few weeks.

Mistake 2: Vague Feedback

"You're doing a good job," or "You need to improve" – these statements are so vague they're practically useless. Employees deserve specific, actionable feedback that helps them understand their strengths and areas for development. Vague feedback leaves employees feeling confused, demotivated, and unsure how to improve.

The Fix

Be precise. Instead of saying "You need to be more proactive," try "I've noticed that in recent meetings, you haven't been contributing as much as you could. For example, in the last project kickoff, you didn't offer any suggestions during the brainstorming session. Next time, I'd love to see you come prepared with a few ideas." This provides concrete examples and suggests specific actions. Remember the SBI feedback model: Situation, Behavior, Impact. Describe the situation, the specific behavior you observed, and the impact it had.

Mistake 3: Overly Critical Feedback

While constructive criticism is essential, evaluations shouldn't become a laundry list of shortcomings. Focusing solely on the negative can damage morale, stifle creativity, and make employees feel undervalued.

The Fix

Balance constructive criticism with positive reinforcement. Start by highlighting the employee's strengths and accomplishments. Frame areas for improvement as opportunities for growth, not personal attacks. Focus on behavior, not personality. Instead of saying "You're lazy," try "I've noticed that deadlines have been missed on the last two projects. Let's discuss how we can prioritize tasks and ensure timely completion in the future."

Mistake 4: Failing to Follow Up

A performance evaluation is not a one-and-done event. If you don't follow up on the agreed-upon goals and action plans, the entire process loses its value. It sends the message that the evaluation was just a formality and that development isn't truly a priority.

The Fix

Schedule regular follow-up meetings to discuss progress, provide ongoing support, and adjust goals as needed. This shows employees that you're invested in their growth and development. Make the follow-up process part of your evaluation system.

Mistake 5: Ignoring Employee Input

Evaluations should be a two-way street. Failing to solicit employee feedback is a missed opportunity to gain valuable insights and foster a sense of ownership.

The Fix

Include a self-assessment component in the evaluation process. Ask employees to reflect on their performance, identify their strengths and weaknesses, and propose development goals. Use the evaluation meeting as a platform for open dialogue and mutual feedback.

Mistake 6: Lack of Consistency

Inconsistent evaluations can lead to feelings of unfairness and resentment. If some employees are held to different standards than others, or if the evaluation criteria keep changing, it undermines the integrity of the entire process.

The Fix

Develop clear, consistent evaluation criteria that are applied fairly to all employees. Provide managers with training on how to conduct objective and unbiased evaluations. Document the criteria and make them accessible to all employees.

Mistake 7: Forgetting About Goal Setting

Evaluations should be forward-looking, not just a review of the past. Failing to set clear goals for future performance leaves employees without a roadmap for improvement.

The Fix

Use the evaluation meeting to collaboratively set SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound. These goals should align with the company's overall objectives and provide employees with a clear sense of direction.

Mistake 8: Neglecting Manager Check-ins

Annual evaluations are not enough. Employees need regular feedback and support to thrive. Neglecting manager check-ins can leave employees feeling isolated and unsure of their performance.

The Fix

Implement a system of regular check-ins between managers and employees. These check-ins don't have to be formal performance reviews. They can be informal conversations about progress, challenges, and development opportunities. These regular touchpoints provide ongoing feedback, build stronger manager-employee relationships, and prevent surprises during the formal evaluation. Think of it as continuous performance management, not just an annual event.

Mistake 9: Avoiding Difficult Conversations

The cold, hard truth is that most of us don’t want to sit down face-to-face with another person and let them know that they’re not meeting expectations. It’s uncomfortable. But shying away from addressing performance issues directly can lead to unresolved problems and hinder employee growth. 

The Fix

Approach difficult conversations with empathy and a focus on development. It’s important to provide this kind of feedback promptly. Addressing a problem right away can keep it from escalating and help set an employee back on the path to high performance. Work collaboratively with the employee to develop a plan to improve and follow-up.

Mistake 10: Failing to Connect Evaluations to the Bigger Picture

Employees need to understand why performance evaluations are important and how they contribute to the overall success of the organization. Failing to connect evaluations to the bigger picture can make the process seem pointless and bureaucratic.

The Fix

Communicate the purpose of performance evaluations clearly and consistently. Explain how they align with the company's strategic goals and how they benefit both the individual employee and the organization as a whole. Emphasize that evaluations are a tool for growth and development, not just a judgment of past performance.

Quick Checklist for Better Employee Evaluations

• Track performance throughout the year

• Use specific, actionable feedback (SBI Model)

• Balance criticism with positive reinforcement

• Follow-up on evaluations and goals

• Include employee self-assessments

• Standardize evaluation criteria across teams

• Set SMART goals that tie to company goals

• Hold regular manager check-ins

• Address problems quickly and with empathy

• Communicate the purpose of evaluations clearly

By avoiding these 10 common evaluation mistakes, you can transform your performance review process from a source of stress to a powerful engine for growth and development. At Express Evaluations, we're dedicated to helping you build a high-performing, engaged workforce. Our software is designed to streamline the evaluation process, provide valuable insights, and make life easier for HR professionals. Ready to improve your evaluations? Try our streamlined performance review software today.

References: 

• Gallup. (n.d.). Performance Management: What It Is & Why It Matters. Retrieved from https://www.gallup.com/workplace/215927/performance-management.aspx.

• Harvard Business Review. (2022, July). How to Conduct a Great Performance Review. Retrieved from https://hbr.org/2022/07/how-to-conduct-a-great-performance-review.

• Society for Human Resource Management (SHRM). (n.d.). 5 Pitfalls to Avoid While Providing Performance Reviews. Retrieved from https://www.shrm.org/in/topics-tools/news/blogs/5-pitfalls-to-avoid-while-providing-performance-reviews.