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How to Use Employee Evaluations

May 28, 2013 at 2:33 PM

Employee performance evaluations are a regular part of the working environment, but why do we need to do them? Well, it is useful for the managers and personnel people to know what their employees know, what they want, how they are matching up to preset goals and what new goals should be set for them. Additionally, if an employee is not coming up to the required standard, then this can be addressed at evaluation time.


Organizations have goals for their employees, or overall annual goals for the operation as a whole. On top of this, the employee themselves should have goals that they want to meet personally. The employee evaluation is the time to judge if those goals have been met, or if they need adjusting to better fit the employees’ capabilities. Should the employee have met or exceeded any of the goals, this is a positive point that can be entered on their personnel files. Of course, failure to meet the goals, particularly by a wide margin, is a cause for concern. The reasons for this, and the action that needs to be taken, can be addressed at this time too.


By sitting down with your employees, it gives you time to talk to them, assess how they have done, and motivate them. Simple praise for good performance can be motivation enough, but setting of challenging future goals is another thing to be considered. A positive employee performance evaluation could be used to motivate someone until the next review period by promising promotions and/or bonuses if the good performance continues. This is also an opportunity to kick start a lower performing employee, giving them the reasons they need to better themselves.

Promotions and Bonuses

Logically, if the organization can afford it, a performance evaluation is the perfect time to address the issue of promotion and bonuses, if the employee has deserved it. Consistently good performance, or advancement in skills and capabilities, are good indicators that the employee should be rewarded. These rewards will depend on precisely what they have achieved, and the needs of the organization. If there is space above, this would be the time to promote the employee and watch to see if they can meet this new challenge. Alternatively, a one off bonus and/or pay raise could be used to reward good performance. Conversely, demotions and pay cuts could be implemented for those who have performed badly.


So if you want to know how your people are doing, you need to evaluate their performance in a meaningful way. This will help them do their jobs better, help them better themselves, and help the organization utilize their skills in the best way possible.

Tags: employee evaluations performance evaluation
Category: Employee Evaluations

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