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Why Employee Performance Evaluations Are Important

March 07, 2013 at 1:43 PM

When it comes time for performance evaluations, employees usually wish they could run and hide. However, periodic evaluations are valuable to both the employers and employees in a business. The feedback garnered from performance evaluations can be used to motivate workers to meet personal and organizational goals and to determine bonuses, raises and promotions. Evaluations can also help employers pinpoint workers who repeatedly demonstrate lackluster performance and may not be a good fit for the company.

Most businesses want to be the best in their industries. If employees are not motivated to do their best work, it shows in the company’s products and customer service. Although employees don’t necessarily like the idea of being evaluated, if they have an evaluation looming, it will put fire in their pants and motivate them to work harder. When employees are productive, everyone in the company reaps the benefits.

When it comes time to issue raises, bonuses and promotions, employers can use job performance to determine which employees are performing well enough to enjoy these rewards. If past evaluations show a worker is consistently performing below standards, management can justifiably deny him a raise or bonus until his performance improves.

When a higher ranking job opening becomes available within the company, it’s natural to want to choose a standout worker to fill the position. Other employees may not agree with a manager’s choice for a promotion. They may feel they were more qualified for the position. If an employee were to ever accuse management of overlooking him for a promotion because of his height or weight, documented performance evaluations will provide evidence of non-discriminatory promotion practices.

In cases where staff members are not improving or succeeding at the job, employee evaluations can be used to develop a performance improvement plan. This will help create more detailed goals and allow more frequent feedback on his or her performance. If evaluations show the employee is not improving, he or she simply may not be right for the company and termination may be necessary. If firing someone is unavoidable, documented evaluations can provide proof that the employee was given ample opportunity to improve before he was terminated.

When performance evaluations are conducted properly, both the organization and the employees will benefit from them. Workers who are willing to accept feedback can reap the benefits of monetary rewards and grow within the organization. Employers can use the evaluations to motivate employees and watch productivity in their companies rise.

Tags: employee evaluations job performance
Category: Performance Evaluations

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