As the end of the year approaches, many companies are preparing for their annual performance evaluations. Many employers find these evaluations as an opportunity to provide adequate feedback to each person on his or her own performance and to serve as a basis for modifying or changing behavior toward more effective working habits. While these evaluations may seem like a positive tool to increase an employee’s performance, employers must understand that legal risks can arise as a result of the evaluations, such as claims of discrimination.

To reduce the legal risks of performance evaluations, employers should implement the following best practices:

1. Selecting the reviewer: The evaluator should not have a personal or family relationship with the employees being reviewed and should evaluate only those workers in their direct line of supervision.

2. Frequency: all employees in the same job classification should be evaluated on the same time cycle.

3. Objective criteria: Employees should be evaluated on objective/measurable factors.

4. Wording: employers should be cautious about the wording used in evaluations. Always maintain a professional tone and constructively highlight both the positive and negative.

5. Self-assessments: employees should assess themselves as a part of their review process. If both the evaluator and the employee agree on improvement areas, it is easier to set performance goals.

6. Transparency: Employers should have a written document explaining the procedures for performance reviews. The document should describe the criteria used, how often reviews are done, and who will conduct the evaluations.

7. Audits: Employers should conduct audits on the results to determine whether the evaluation system is fair.