MBA1594 How to Evaluate Your Employees

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Hey O. Welcome to the 100 RV a show.

Powering your business brain every single day with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm.

I'm also the co founder of the.

Hundred Dollar mba, a complete business training and community online. And in today's lesson you will learn how to evaluate your employees. Having an evaluation process for your team members is not only good for your.

Business, but is good for the team member as well as you as the manager. Understanding how much value each teammate is.

Adding to the business.

It's easy for us to be out.

Of sight, out of mind, not really.

Have top of mind what everybody's doing in our business, how well they're doing it and how much they're improving. This is essential and even more important for the team member themselves to feel a sense of progression, to feel a sense of improvement, significance, validation and feeling valued. And of course it's a way to.

Find out if somebody needs some training.

If somebody's not doing as well as they should, or even when it's time to say goodbye. But how do you create an evaluation.

System that's fair, that's clear, that's easy to understand and incentivizes performance?

Well that's what we get into in today's lesson, we're gonna make it simple.

We're gonna simplify this process. You can always improve it later on. But I wanna get you started. That's the most important here.

Let's create an evaluation system for your.

Team members that works.

So let's get into it.

Let's get down to business. Not evaluating your team members is like playing a sport or a game without keeping score. And then once a year or once a quarter, you just reveal the score to the team members. Say, by the way, you're winning, by the way you're losing. It's like they are unaware of how.

They'Re progressing and how well they're doing and what they're being scored by.

This sounds like a zany game, right? Like you don't know how to score or how to win and you don't.

Even know if you're winning or losing.

Until some arbitrary or reoccurring date. And by that time it's kind of.

Too late to course correct.

And to be quite honest, this is really unfair. Unfair to the employee, unfair to the actual business because you're not really getting the best out of them. You're not allowing them to do their best. This is why having an evaluation system for your team members is really important. So we're going to make it very, very simple.

First thing we're going to do is.

We'Re going explain and outline to each.

Employee, each department, what winning looks like.

And that is done by setting a set of KPIs key performance indicators. What are the main things they have to do in order for them to be doing their job properly? I'm going to give you an example. Somebody who is a digital marketer on your team. They might have a few responsibilities and let's just name, let's say they have four responsibilities. The first responsibility is running paid ads, Facebook and Google Ads.

Let's say the second responsibility is tracking.

And increasing your website traffic. The third is optimizing all your social media and making sure that you are growing your social media platforms. And the fourth one is tracking and increasing your website traffic through SEO. The important thing about each KPI that you set for a team member is.

Is you need to set KPIs that.

Are measurable, that they can have some sort of gauge, whether it's a metric, whether it's a number, whether it's some sort of score. And some people, they do like a scale from 1 to 5 or something in terms of how well they've done that job.

I personally don't like That I like.

Met, not met, meaning either they met.

That KPI or they did not.

That makes it very clear cut and easy for them to understand and achieve.

You either accomplished that or you did not accomplish. So your job is to take a.

Look at your team members, each role in your business.

You may have three or four roles.

In your business right now. Maybe a marketing person, maybe a customer service person, maybe a salesperson, maybe a manager.

The point here is that you're going to take each role and you're going.

To outline four big KPIs and under.

That you're going to have four clear.

Indicators that they've met that KPI. So for example, let's say social media is one of the KPIs under there. I'll have four saying increased followers for all four platforms that we're on. Let's see, like that might be Twitter, Facebook, Instagram, LinkedIn. The next one would be increased engagement from, you know, the last time we evaluated the next one might be mentions.

The point here is, is that these.

Are things they can actually track and it breaks down what it means to do a good job with social media. One thing I recommend is as you are creating these KPIs and the sub points under them, the four points under them to reach that KPI.

You should do this with the teammate.

That'S being evaluated with this evaluation, with this KPI metric, Make it a workshop, make it something that you come and agree with together. We both agree that hey, this is what winning looks like in your position. Once you've made a document, a very simple document, and you can really just create a Google form, what we do is we set evaluation dates and you could set that on your own. It depends on how busy you are, depends on how senior they are in the business. But you could do evaluations every three months, you can do evaluation every six months. You could do it once a year, but no less than once a year in my opinion.

And you just literally set a calendar date in the calendar.

It's a calendar invite.

And before that date, the employee, the teammate will self evaluate, they'll open up.

This KPI document and they'll look at the last year or six months or whatever the cycle is and say have you met those KPIs? Met or not met. And they basically score themselves before it's time to have that chat.

And you basically go through the documentation.

And talk about how you met that and how you did not meet each KPI. This is a great discussion to come up with great ideas and great solutions to improve the position and the role and make the business better as a whole.

It also gives them a chance to kind of voice some of the challenges.

They'Re having and maybe voice maybe where.

They need more training, more help, more.

Support from your side. It's also an opportunity for you to.

Praise what they're doing.

Great. And this is really, really important. Praise is underrated in business. You have to praise people when they're doing something well because that's a really good reinforcement to keep working hard and.

Keep doing what you're doing.

That's helping the business.

Show them the impact they're making on.

The business as a whole when they do these great things.

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One of the practices we do in.

Our business is when we go and do an evaluation for the second, third, fourth time, we always go back to the last evaluation, review it.

We see how far we've gone since.

The last time we sat down and discussed whether it's three months ago or a year ago.

It's great because it shows us progress.

It shows us how much we've grown. It shows us also what we committed to improving last time. And we say, hey, did we work on those things? Did we actually make an improvement there?

This holds people accountable, but at the.

Same time it reminds you, because you're busy as anything, you're doing a million things in your business of what has transpired last time you sat down to speak to them. I like to tie incentives with evaluations. I think that it only makes sense that people are incentivized to hit their KPIs and to do an exceptional job. So our bonuses, our incentives, our increments, all that stuff is tied into their evaluations. And this allows things to be a lot more objective and really, frankly, very very satisfying for the employee when they hit their goals.

Guys, this was just a simplified version.

Of evaluating your employees.

I want to get you started.

I know it's really oversimplified. I know that this is just the start. I know this is not everything you have to do, but if you get started with this, you can always innovate and improve with your team.

The worst thing you could do is.

Just leave it hanging and not evaluate.

Get started with something simple and just.

Say, hey, this is something simple. This is something I just come up with. I think it's better for us to at least just meet and talk about these things and that way it's fair and then we can grow and we can improve as we move on.

And this is everybody's responsibility.

It's not just your responsibility. Get the whole team involved in creating these evaluations and these KPIs. Thank you so much for listening to the Hundred Dollar MBA show.

I hope you found it beneficial.

Today's episode if you learned something, please share with somebody right now on social Share this episode Take a screenshot if you want and share it on social media. Let people know how much you love this podcast. It would mean the world to us. Don't forget to MBA on the different social media handles over there and platforms. Also, don't forget to hit subscribe so you don't miss a beat. You don't miss the next episode once it's published. Before I go, I want to leave you with this.

Evaluations are super important.

Make sure you put them in your calendar and they're locked in well in advance. It's a priority. You shouldn't be planning things and neglecting this evaluation. This is something that gives you a chance to really connect with your team members. Build that rapport, build that sense of we all have to get better. So if it's in the calendar, it's a priority. Thank you so much for listening and I'll check you in tomorrow's episode Q and A Wednesday. I'll see you then. Take care.

Of foreign.

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