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Employee Evaluation Report for Small Businesses

December 18, 2013 at 2:30 PM

Annual performance evaluations have come to be thought of as the report card of the workplace. In businesses large and small the annual performance evaluation is the key tool used in sizing up an employee’s continuing efforts and abilities. When an employer needs to hire new employees several factors are put on the table for consideration. However, the abilities of the employee are not static. Many things over the course of time can affect an employee’s performance. The employee evaluation report allows the employer to keep track of any changes in job performance. Annual performance evaluations are a very critical aspect of larger businesses, but most people do not realize that they can also be a useful and necessary tool to the small business owner as well.

Promotion Purposes

An employee evaluation report can help the small business owner evaluate whether or not an employee is ready to take on greater responsibilities within the company. It is important for the small business owner to visually see the employee’s performance over the period of the last year. Often when reflecting on something we may remember certain details. Having the employee’s performance evaluated visually in front of you can help you pinpoint small crucial details you may have forgotten about. Sometimes it may not be possible for the small business owner to have personal one on one contact with each of their employees all year. When this is the case the employer can use the annual performance evaluation to determine whether or not an individual’s work habits qualify them for a possible promotion.

Compensation Purposes

For small business owners who do not have a systematic schedule of raises, increases in compensation are often determined by the annual performance evaluation. When employees are aware that good work ethics and responsible practices are rewarded with increased compensation, it elevates their competitive work edge. This results in the employer getting better results all year long.

Training Purposes

One of the most important aspects of the annual employee evaluation report is to give the employer a chance to see what skills need to be worked on with each employee. Many employees fall behind in their job performance simply from a lack of training. Perhaps the employee was hired before certain skills were a requirement. They may not have the same edge as an employee who came into the company with that skill set. An employer does a service to himself as well as to his employees when he annually evaluates each individual’s performance and then schedules training accordingly.

Tags: job performance performance evaluation employee evaluation report
Category: Employee Evaluations

Staff Files helps managers keep electronic personnel records including employee performance evaluations. Download a free demo/trial edition of the software to try it out!


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