How can employee performance/productivity evaluations interface with Form W-2 analysis?
Once you’ve completed the Form W-2 spreadsheet, evaluate the performance and productivity competencies for each employee. A good initial step is assess (and note on the spreadsheet), whether an employee’s individual performance/productivity is in the top, middle, or bottom 33 percent of his/her position category. We call this a “TMB” assessment. You can also assign employees into the “Nice to Have” and “Must Have” categories. If you desire, you can get more sophisticated and summarize statistics for most employees. For example, for vehicle sales personnel, you could summarize units sold and gross profit generated for each of the last two years. If you were asked to describe the pay plans in effect within your dealership, could you describe them accurately? In too many instances, we’ve found that how a dealer thinks the pay plans are structured is different than how the office is determining pay. We highly recommend that you perform an internal review to verify that your understandings
