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Why is an Employee Performance Evaluation Important?

January 15, 2013 at 11:31 AM

The employee performance evaluation can strike cold feelings in the manager's heart. They spend many hours poring over employee records to find the perfect words trying to be a leader and share valuable insights with a spirit of rallying the workers together in order to be a cohesive unit. That is a rough job. We know all businesses have a routine of performing these evaluations, but why exactly are employee performance evaluations necessary... and how can we make that job easier?

The benefits of having an effective and constructive employee performance evaluation are the following:

Reward Good Workers

All people want to be recognized for their work. When there is no incentive, work production and quality goes down. There is no reason to work hard if there is no appreciation or reward for going over and above the normal expectations. Finding ways to recognize an employee who shows initiative and gives ideas for making their job more efficient and cost-effective is an excellent way toward our next point: reducing employee turnover. Those who don't feel valued or heard will find another job they think will listen to them and their ideas and will enhance their feelings of loyalty toward the company. An employee evaluation is a good time to listen.

Decrease Employee Turnover

Reasons given for finding other jobs are anything from needing better pay and work conditions to not being respected and valued. One reason for keeping a performance evaluation in the personnel files is to record their grievances and set goals for them in hopes that they will aim higher and reach their potential within your company. Addressing each employee's individual concerns and needs within the organization will create a highly motivated team working for the good of the company.

Specify Improvement Areas

The most dreaded aspect of the employee evaluation, for the employee, is hearing about the areas that need improvement. Finding a compassionate and productive way to talk about how they can achieve their goals will go a long way toward creating a loyal employee who no longer faces anxiety about their reviews. Providing a plan or other resources for the employee on how to meet their goals will help them toward overcoming their difficulties.

Protect the Company with Documentation

Keeping records is necessary. Not just for financials or inventory; but also employees. Their performance history is important and can be an asset. When it’s time to find an employee for a new position or promotion, it’s helpful to review their work goals and see their growth over time. A staff management software can be used to help keep these files in an orderly and easily maintained manner.

Download the free demo or contact us for information about our staff management software and make your employee performance evaluation task more efficient.

Tags: employee performance
Category: Performance Evaluations

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