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Key Benefits of Employee Evaluations

May 10, 2013 at 8:33 AM

As a manager, you are responsible for rewarding employees who excel at their jobs and giving them feedback and guidance when they need it. One way to stay on top of how employees are performing is to do periodic employee evaluations. You can use a performance evaluation to give rewards, motivate workers, and help employees set goals for improvement.

Rewards and Motivation

No employee wants to work in an environment where his hard work is unnoticed or unappreciated. After all, employees are a company’s most valuable asset. Imagine dropping by your favorite fast food restaurant and there is no one there to serve you. It’s not much of a business is it? An organization without human capital might as well not exist as there is no way it can meet the customers’ demands.

Doing employee evaluations and keeping the information in a personnel file will allow you to track employees who excel so they can be rewarded accordingly. For instance, if there is a job opening available within the company, the evaluations can be used to find a qualified individual to fill the position. Also, when it comes time to give raises and bonuses, the information on employee evaluations can be used to determine which workers are eligible for higher compensation.

In a lot of cases, nonmonetary rewards such as a simple thank you, a handshake or a company dinner is enough to make employees feel like they matter and serve as motivation for them to work harder.

Documentation of Poor Performance

Supervisors do their best to screen potential employees to make sure they hire quality employees. Unfortunately, not every employee will be effective at helping an organization achieve its goals. Employee evaluations can help you pinpoint the workers who need feedback and guidance. Once you provide feedback, evaluations will allow you to track employees’ progress to see if they are meeting the performance goals that were set for them. If it is determined that an employee is not a good fit for the company and he has to terminated, the evaluations will provide documentation of past warnings.

The nature of a business, as well as its size and objectives will play a role in how often managers conduct employee evaluations. In a small business with just a few workers, it's likely the supervisor works closely with employees, so evaluating them once a year might be ideal. In larger companies where supervisors are not able to monitor everything, more frequent evaluations may work better.

Tags: employee evaluations personnel files
Category: Performance Evaluations

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