How to Create a Scorecard for Employee Performance

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Maintaining employee oversight is an important part of your managerial responsibilities in running a business. However, you have to make the process as objective as possible. One way to do this is by devising a scorecard to measure employee performance. A tabulation of daily effectiveness can be a tool to determine career advancement for your workers. Because this system can result in such high stakes, you must make sure it is as fair and equitable as possible, and that it takes all the most important factors into consideration.

Assign each of your employees an anonymous number designation and keep the number key separate from the score sheet. This will allow you to consider the raw data of the scores without having personal feelings about individuals affect your judgment. Your employees will appreciate that the idea of "favoritism" has been removed from the process; make sure the administrative assistant responsible for gathering this data is the only person who knows which number identification corresponds to which employee.

Determine how important each aspect of performance is and weigh it accordingly in the scoring system. For example, tardiness likely should not command an equal portion of performance score as the number of sales. Working on a number scale of 100 will allow you to break up the percentage of importance any individual factor should have.

Keep the scores limited to no more than a month at a time. You can certainly keep these results on file for a look at an employee's performance over a longer period of time; however, a scorecard that goes on longer than this can be difficult to read when the data become jumbled.

Use a simple spreadsheet to physically design the scorecard. While keeping the system as simple as possible, you will avoid complaints that the process is unfairly biased or subject to misinterpretation. Also, you should keep an open-door policy about the scorecards in order to clear up any misconceptions as soon as they occur.

Keep the scorecards in a closed file; because these are sensitive personnel files, scorecards should not become a published among the other employees. Public scorecards could encourage cutthroat mentalities in the workplace that are detrimental to the smooth functioning of your business.