New Era of Performance Standards


GOLDEN BUSINESS IDEA

Gone are the days of performance checklists, hastily reviewed during an employee’s annual review. Companies now use performance standards to design orientation and training plans, research customer service and development needs, and award performance bonuses.

The National Federation of Independent Business ( www.nfib.com ) provides guidelines for creating effective, objective standards. Design your company’s performance evaluations to meet the following criteria:

Identifies a distinguishable line between unacceptable and outstanding performance.

Is challenging but manageable.

Sets specific, measurable and objective guidelines.

Covers only functions controlled by the employee.

Benefits clients or customers.

Uses precise language and terms.

The final key for effective performance standards lies in communication—make sure the terms are settled upon by both the employee and manager.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.