free employee performance reviews examples

Staff and Salary

Sooner or later eventually the time arrives where you have to hire somebody to help you. You will need to prepare a couple of things before posting a “Help wanted” ad on your website or in the local newspaper.

Take some time and create a detailed job description – not for the ad, but for yourself. Think about everything you want the employee to work on. The duties and requirements of the position needed to be laid out properly. This will give you a good impression of what you need to expect from the future team member. It will also give the employee an idea of what is expected from him/her. One of the biggest mistakes made when hiring employees is different expectations from both side – because of a missing job description. Avoid these mistakes by doing your homework – before you hire.

You also need to decide if you want a contractor or a real employee to join your team. Both options offer advantages and disadvantages. If the contractor isn’t operating as a company, you will want him to fill out the IRS 1099 form. The contractor is responsible for paying his own taxes – not you. Employees get the W2 form instead at the end of each year to report their income. You are responsible for deducting the tax from the employee’s paycheck and to send it to the IRS. You are most likely also responsible for paying money for the social security, workers comp, and for unemployment. Check with an account / lawyer and eventually consider hiring a payroll company to take of everything for you. Other things to consider are:

1) Term of contract (open or limited time – e.g. 3 months)
2) Benefits for employees (health insurance, etc.)
3) Job requirements / responsibilities
4) Probationary period
6) NDA / Non compete clause (check with a lawyer to make sure it is legal in the area you live in)

Contract – you will need a very clear and detailed contract that specifies what is required from the employee and what is expected from you. The contract should list everything that might need to be regulated this way. Check with a lawyer and also do your research. Every state might have different requirements. Your local SBA office will eventually be able to help you. http://www.nolo.com has also some very good information available. The whole topic is very complicated if you have never done it before. Be safe – take your time and rather hire a professional (personnel or outsource) to avoid mistakes.

Besides all the legal stuff – you also have to make up your mind of what kind of pay you can offer your employee. The web hosting industry has different models in use right now. For support technicians the pay can either be per ticket or salary-based. Or it can be a combination of both. If you pay your staff per ticket, you will also come up with a scheme for easy tickets (less work) and for more difficult tickets (more time consuming). Our research has shown prices per ticket ranging from $1.25 to $2.50 per ticket. You can also add incentives for tickets answered within a certain time after the customer has submitted the ticket. As faster the tickets are answered, the better your company looks to the customer. Speedy customer service is a definite plus. You will need to put into consideration where the employee will be located. Somebody in a rural area has fewer costs of living compared to somebody living in New York City as an example. If you want to keep good employees you need to make sure that the salary is adequate and fair. You could offer frequent pay increases to motivate the employee or contractor to do better work.

If you need to hire a system administrator, you will look at a higher cost. Depending on how much help you need, you eventually should start out with hiring somebody hourly-wise. This will keep your cost low and gives you time to see how the admin performs. If you find a good administrator and your finances allow hiring him, it might be a step to consider. Highly skilled and motivated employees are worth their money. Your business reputation will depend on those people, too. Selecting the right staff is important. Salary-wise – hourly pay for administrators can rank from $20.00/per hour to $90.00 per hour. Eventually a service contract will be an option for the beginning. This will give you a certain amount of time of the administrator at a fixed cost.

Motivation: Motivate your employees. A small bonus here, or an Amazon.com gift certificate here, will do a lot to keep the employee motivated. Research has shown that these small motivational things do much more good for your business, than the one-time raise a year. If your employees work in an office location – have a Pizza Day once a month/week and eventually offer free pop (Coke, Mountain Dew, and Sprite).

The hiring process: Once you receive the resumes of the applicants, make sure you take the time to read them carefully. There are several different approaches for this and you will need to figure out which one works best for you. You can sort the resumes by level of experience. Newbies might not have experience, but they might be much more motivated and willing to learn. They also ask for less money. But – they might leave your company soon once they have some experience under their belt. Now they are able to make more money somewhere else. More seasoned applicants need less supervision and less training. The return of investment (the salary) for you is probably higher – at a price (higher salary). Make sure you ask for references and do check them, too.

Hiring is one of the toughest elements of small business management. Determining what talent a business needs to succeed, then finding the time and know-how to recruit these people is a real problem for many entrepreneurs. Successful hiring can be expensive and time consuming. Unsuccessful hiring can be disastrous for your company’s health.

Markets change. The information provided here might not match the market and location where you are located. Do thorough research and don’t be shy hiring professional help for this important step

How to Fire an Employee

One of the most difficult tasks you will face as a business owner will be firing employees. Employees who consistently break the rules, do not perform the functions of their job, or cause difficulties for your business can be a strain on the work environment, your cash flow, and even disrupt your business from thriving and performing as expected. This tutorial will give you steps and hints about firing employees or associates.

Document, Document, Document

The first step in preparing when letting go an employee is to make sure you have all the documentation you need. When you give verbal warnings, be sure to document them properly. Make a case for this specific situation by documenting everything you did before making the decision of releasing the employee. Anything that shows that you tried to solve things to the better. Your business should have a well documented procedure for what it expects from employees and anything that is considered grounds for immediate dismissal. Be sure to use these as guidelines and consult with a lawyer experienced in HR questions if necessary.

Witnesses

Have a friend, family member, or business partner be there to assist in any paperwork and any issues that arrive from the employee. Not only does this representative help with anything you might forget, they also serve as a witness if any lawsuit arises. This will be difficult for either one of you but in the end it will be well worth the effort.

“I’ve been fired, but why?”

Explain to the employee the performance you have expected, the steps you have taken to help them meet that performance, and that he/she has not met them. Do not say more than you have to, just state why they are being dismissed and fill out any exit paperwork. If you are upset, cool down before talking to them. If you have to fire somebody over the phone because he or she is in a different location advice the employee that you have somebody with you listening to the conversation. Make it very clear that you are in control and prepared.

Establish Exit Procedures

Make sure you backup any important files before firing the employee and take steps to lock them out of any computer system. Change all passwords but make sure the employee does not realize that before the actual moment of truth. It is also recommended that you fire someone on a Monday and not on a Friday. Employees fired on Fridays have the whole weekend to stew, while those fired on Mondays usually are more upbeat because they have the week ahead of them. Be sure to explain when the last paycheck is coming, when benefits terminate, and any information regarding extending their health coverage or any other details (if this applies to your situation).

Remember to keep the meeting short and to the point. Explain to the other team members that you fired the individual without going into too many details. They do not need to know all the details but you need to make sure that they understand that this was not a personal dispute between you and the employee fired. You want employees to be honest to when disagreeing on something and not scared to get fired. When a new potential employer calls you for a reference, remember to just state the title and dates of employment. Specify that you are not able to provide any further information. Advice your remaining employees that your business policies specify that all calls for references have to go through HR (you?) or yourself. Document again how the complete process of firing went, what the employee had to say and what happened.

Filed Under: Human Resources Tagged With: employee performance reviews examples, free employee performance reviews examples, Human Resources, human resources command, human resources training

Deadlines Approaching For Filing 1099s For Independent Contractors

Deadlines Approaching For Filing 1099s For Independent Contractors
by: Richard A. Chapo

While the middle of January may seem a bit early to begin thinking about taxes, 1099-MISC filing deadlines are looming for businesses. Generally speaking, IRS 1099-MISC is the form used to report miscellaneous income that you paid to persons during 2004 in the course of your trade or business.

Does This Apply To My Business?

The 1099-MISC forms must be issued to any person that you have paid at least $600 in rents, services or other income payments. Typically, you should issue the form to any independent contractor that you paid $600 to during 2004. For example, if you paid a designer $1,500 to build and maintain a website in 2004 for your business, a 1099-MISC filing would be required. As with practically any IRS filing, there are additional situations that require a 1099 filing [ex: any fishing boat proceeds], so make sure you cover your bases by looking at the relevant instructions. Generally, you are not required to report payments to a corporation.

When and What Must Be Filed?

The 1099-MISC form is a multi-layered carbon form, so make sure the information you provide appears clearly on all of the copies. Once you have filled out the form, you must provide Copy B to the person that you are reporting to the IRS by January 31, 2005. Using our previous example, you would mail Copy B to your website designer before the end of January.

Copy A of the 1099-MISC form is intended for the IRS. You are required to file it by February 28, 2005 if you are sending the form by mail. If you prefer to file electronically, you have until March 31, 2005 to file the form.

Revealing a particular flair for red tape, the IRS requires you to file an additional form if you are filing Copy A of the 1099-MISC by mail. In such a situation, you must file an “Annual Summary and Transmittal of U.S. Information Returns” form. This summary is better known as Form 1096 and you should have already received a copy of it in the mail from the IRS.

Where To Find These Forms

To the surprise of many people, the IRS has an excellent website containing information and tax forms. Unfortunately, the site is fairly useless when it comes to obtaining tax forms that you can actually file. You cannot download and use any 1099 form from the website. If you try to print forms from the site and use them, you run into two problems. First, the IRS computers will not be able to read the forms and will reject them. Second, it is doubtful that you will be printing on multi-layered carbon paper, which means you will have no Copy B of the 1099. Obviously, either situation can attract unwanted attention from the IRS.

You can order forms from the IRS by calling 1-800-tax-form or ordering them off of the IRS website [do not download]. The IRS suggests it typically takes at least two weeks for the forms to be delivered, but keep in mind that it may take longer. If you need the forms sooner, you usually can find them at libraries and post offices.

About The Author

Richard Chapo is CEO of http://www.businesstaxrecovery.com -

Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review. He can be reached at richard@businesstaxrecovery.com.

Filed Under: Human Resources Tagged With: employee performance review, free employee performance reviews examples, human resources canada, human resources websites

Setting Clearer Performance Expectations

The annual performance review.

Stating this phrase guarantees some reaction for anyone who has ever had one, or had to give one as a supervisor or manager. In my experience in working with organizations, that reaction is seldom positive.

The concept behind the performance review or evaluation is a good one. It is a chance for someone to discuss their accomplishments, get feedback on their progress, and build a plan for continuous improvement. The idea makes sense, which is why every organization I’ve worked with has these meetings between a supervisor and an employee.

Unfortunately, while the idea is sound, far too often, in execution, these meetings are ineffective at best, and counter-productive at worst. While there are many reasons why this is true, one of those reasons is that supervisors don’t know how to do one of the most critical parts of this event effectively – setting clear performance expectations.

Without clear expectations from the previous year, the discussion becomes too subjective – one of the major (justified) reasons employees don’t find these reviews valuable. Without clear expectations set for the coming year, people don’t know what to work on throughout the year, beyond vague generalities or assumptions. This then sets them up for yet another largely subjective review next year.

Some Criteria

These expectations should be:

- Connected to the goals and objectives of the organization

- Clear and agreed upon

- Developed jointly

Applying these three criteria to the expectations you set during these meetings will improve the relevancy and clarity of the expectations. And by jointly developing them you improve the commitment of the employee to both the process and the expectations themselves.

Getting There

Once you know what successful expectations will look like with the criteria, the next question becomes, “how do we get there?” Here are some tips to help you identify, clarify and agree to performance expectations.

1. Start with organizational goals. Help the employee understand department and organizational goals. Discuss how their work can positively impact the achievement of those goals. Use that perspective to develop any performance expectations that directly link their work to those goals.

2. Ask questions. One of the biggest mistakes you can make during a performance review meeting is to do all of the talking. Get the employee to discuss their expectations and goals for the coming year. Start by asking questions – especially open ended ones. Perhaps you have some very specific things you want to include – you can add your items later in the conversation. Ask first and ask often.

3. Be quiet. If you are going to ask… you have to be quiet and listen. Be patient. They might not have an immediate thought – or they may be scared to say much if this is a different approach than they have experienced in these situations before. Ask the questions expectantly, rephrase them if needed, be patient and keep your mouth shut. If you are going to jointly create these expectations, you have to let them talk.

4. Acknowledge their feelings and perspective. You may not agree with everything they say. You may see their proposed expectations missing the mark slightly. Remember this is a conversation. Don’t judge too quickly. Even if you want to influence them to a different view, acknowledge how they feel, even if your feeling is different.

5. Challenge them to stretch. One of the best things we can do for people is encourage them to stretch their performance. Help people raise their expectations a little bit more. How do you know it is a stretch? When is feels like a challenge, but isn’t unbelievable. Setting expectations of improvement levels that people can’t visualize achieving is likely beyond a stretch. Set expectations that raise the bar a little – and that drive people towards their potential.

6. Be specific and descriptive. The expectations need to be descriptive and clear. If they are vague, they are open to interpretation and won’t be met to anyone’s satisfaction. Make them specific and write them down.

7. Restate and clarify. The meeting can’t end until you have agreement on the expectations, and you can’t get agreement unless they are clear. Review the notes that have been written down, and make sure that you both agree that they say want you want them to say, and that when you both read them in 2 days or 2 months, that they will still mean the same thing.

8. Gain agreement. Get people to commit to the expectations that have been created. Give space for them to share concerns or frustrations, but leave with a commitment to work towards these expectations. Your organization may want people to sign their performance reviews or plans. Beyond those requirements, having people sign their expectations and agreements is a powerful piece of people committing to achieve something. So consider having people sign, even if it isn’t a part of your organization’s process.

Taking these steps will help you create job expectations that will meet both the organization’s and the individual’s needs. It will also be a springboard to helping make those performance reviews more valuable – for everyone.

Final Note

Perhaps as you read this list you didn’t see anything earth-shattering or new. If so, my question to you is – are you doing all of these things, even though you know them?

About the Author

Kevin Eikenberry is Chief Potential Officer of The Kevin Eikenberry Group (http://KevinEikenberry.com), a learning consulting company that helps Clients reach their potential through a variety of training, consulting and speaking services. To receive your free special report on “Unleashing Your Potential” go to http://www.kevineikenberry.com/uypw/index.asp or call us at (317) 387-1424 or 888.LEARNER.

Filed Under: Human Resources Tagged With: employee performance review, employee performance reviews examples, free employee performance reviews examples, job performance review, performance review, performance review software, performance reviews, writing performance reviews

Managing Rebellious Employees

Surveys of executives reveal that many companies fall short of their profit objectives due to “people problems.” Research for my Absolutely Fabulous Organizational Change book found these “people problems” fall into two “r” categories: rebellion and resistance.

Rebellion is akin to teenagers defying authority figures, fir instance, rebelling against leaders who institute change. Resistance includes employees flinging roadblocks in the way of the organizational change. Examples include employees slowing down their work pace, badmouthing the change behind leaders’ backs, making spiteful comments about the leaders, and slashing productivity.

Feels Like a Lover or Spouse Just Walked Out on You

One of my prouder moments in the media spotlight occurred when I appeared on business television shows — and also was quoted in national magazines — concerning employees’ emotional reactions to organizational change. I had just delivered a speech on the topic at a national convention. At the press conference after my speech, reporters snapped to attention and later quoted me when I said the following: “The major emotional reaction of employees during organizational change is that they feel like their spouse or lover just walked out on them!”

Why did my statement attract media attention? Because I summarized the emotionally charged sting of betrayal everyone has felt for various reasons. Employees showing difficulty handling change often feel betrayed. They get used to everything at work being done in a certain way. But all of a sudden, if a company (or spouse or lover) changes how it acts, the person feels a huge sense of loss, distrust, and betrayal.

7 Methods to Handle Resistant Employees

My research on executives who lead highly profitable organizational change uncovered the seven most useful methods to handle resistant employees:

a. communicate reasons for change

b. terminate

c. involve employees in decision-making

d. incentive pay

e. insist employees achieve quantified objectives within deadlines

f. teamwork that creates peer pressure to “get with the program”

g. celebrate successes to help employees feel proud and emotionally “bond”

“Old-Style” Versus “New-Style” Employees

Another bottom line concern: Employees who worked productively before the organizational change may be unproductive after the change is implemented. I call them “old-style” and “new-style” employees. I find the following vital differences:

Old-Style Employees: Works in 1 department, Solo work, Likes receiving direction, Prefers to be told what to do, and Focus: Seniority & experience.

New-Style Employees: Interdepartmental, Teamwork, Likes ndependence, Prefers shared leadership, and Focus: Updating & expanding skills.

For example, at Excell Global Services, vice president Lori Ulichnie used four methods to transform old-style employees into the new-style employees needed to implement Excell’s highly profitable organizational changes:

a. Incentive pay

b. Thrill of employees receiving executives’ attention

c. Clear business strategy

d. “Communicate 500 Times” — continually repeating Excell’s strategy to employees.

Shoot the Dissenters

Another way to handle resistant employees was colorfully stated when I delivered my Absolutely Fabulous Organizational Change™ presentation at a company’s management retreat. At one point during my presentation, an executive stood and dramatically announced: “As our organization undergoes major organizational changes, we always seek to cure the wounded. But, we will shoot the dissenters!”

Every manager in my workshop remained silent for a few moments. Then, they all burst out laughing. Reason: They recognized the wisdom of what they heard. Some rebellious and resistant employees simply need to be de-employed. After all, a company’s purpose is to prosper — not to run a counseling center for rebellious employees.

Hire the Best

Importantly, a fantastic way to avoid employee problems in times of change is to not hire employees who could become problem employees! As I always ask in my workshops and speeches on Hire the Best — & Avoid the Rest™, “What’s the fastest, cheapest and easiest way to have productive and dependable employees?” My answer: “Hire people who are productive and dependable human beings!!” Superior hiring methods often include evaluating applicants using customized tests and interviews.

About the Author

Michael Mercer, Ph.D., is a consultant, speaker, and founder of The Mercer Group, Inc. in Barrington, Illinois. He delivers speeches and seminars at conferences and corporations. Dr. Mercer’s “Abilities & Behavior Forecaster™” pre-employment tests are used by companies across North America. He authored “Hire the Best — & Avoid the Rest™” and also “Absolutely Fabulous Organizational Change™”. You can subscribe to his FREE e-Newsletter at http://www.DrMercer.com or call him at (847) 382-0690. © Copyright 2005, Michael Mercer, Ph.D.