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The Importance of Employee Performance Evaluations

March 11, 2014 at 8:25 AM

It may not seem important to bother with employee evaluations. The process can be tedious and time consuming. You might feel that evaluations are not necessary. When you evaluate employee performance on a regular basis you will have information that helps you do the following:

  • Determine if an employee is deserving of a raise.
  • Decide if an employee is ready for a promotion.
  • Learn if your employees are properly trained.
  • Choose employees who are ready for more responsibilities.
  • Recognize employees who are doing excellent work.
  • Find what departments are having problems.

When you have a strong system of personnel performance management set up, employees know what to expect from the evaluation process. With a clear system in place, employees are rewarded for their hard work. Those that are struggling at their job will have problems and solutions clearly defined and any lack of training can be easily addressed.

It is good for your employees to always understand how they are performing at work. When you evaluate employee performance, you collect data for yourself to make decisions, but you also provide the employee with valuable feedback. An employee that is struggling at their job will want to know how they can improve their performance and be given the chance to improve.

When an employee receives an excellent review, it's important to recognize that employee and look for opportunities within the company where that employee will excel. If you have a great employee, it is vital for the growth of your company to hold on to that valuable employee by recognizing their hard work and providing them opportunities to move up within the company.

An employee who receives a poor evaluation could decide to take the evaluation several ways. The employee might get mad and choose to quit the company. If they decide to quit, it is probably the best choice because you don't want employees who are angry and who are not willing to try to improve. If the employee decides to take the evaluation as constructive criticism and works hard to improve their skills, then you know you have an employee that cares about the company.

Evaluations can take up a lot of time, but they are worth doing. You will be able to understand who your most valuable employees are when you begin to evaluate each person using the same parameters. You will learn the skills of each employee and where your business is struggling overall. When you take a methodical approach to learning about the employees that work in your company, you will gain insight that will be invaluable.



Tags: employee performance performance evaluation
Category: Performance 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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