How should you prepare for the performance evaluation?
Review the goals you set for the employee last year.
Review the employee’s job description.
Gather all the performance notes you have accumulated over the year. Have specific examples of good and bad performance.
Draft a performance evaluation.
Review your evaluation of the employee with your manager to be sure you are in agreement and to keep them informed.

Points to remember:
Consider the employee’s performance over the entire period not just the last month or two.
Don’t be overly influenced by one or two events (either positive or negative).
A balanced evaluation will include both positive results as well as areas to improve.
Be honest while maintaining the employee’s self esteem.

How should you conduct the performance evaluation?
Set aside a specific time to meet with the employee and let them know it will be their performance evaluation meeting.
Ask the employee to come prepared to discuss their performance.  You might ask them to prepare a list of their accomplishments over the past year.
Make sure the meeting is held in private without interruptions.
Listen to the employee’s view of their performance.

Points to remember:
The worst feedback is personalized criticism that is judgmental. Make it about the work not the person.
Be prepared to discuss possible solutions to problems.
End on a positive note by reinforcing the benefits to be gained by making the changes you have discussed.

What should you do after the evaluation?
Include points discussed during the evaluation discussion on the evaluation.
Give the employee a copy of the evaluation.
Your evaluation of the employee’s performance is your view of how they performed. If the employee disagrees with your evaluation, you should not change the evaluation. The employee is free to make comments in the comment section on the evaluation.
Have a follow up meeting to discuss the employee’s goals for the upcoming year which begins the cycle again.

Points to remember:
If the evaluation was difficult, you may want to allow the employee time to reflect on what you discussed and meet again to talk about how to work together to improve the employee’s performance. Show that you are really concerned about helping them improve.

If you agreed on an action plan such as weekly meetings to review projects, confirm it to the employee in writing and be prepared to follow through on the actions you agreed to take.