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You are here: Home / Archives for HR Tips for Employers / The Importance of Performance Evaluation

The Importance of Performance Evaluation

September 18, 2013

Tip 10: Performance evaluation provides legal protection for employers against lawsuits for wrongful termination.

Performance evaluation is one of the most powerful defenses for employers against wrongful termination charges. Supervisors should give candid and truthful performance appraisals in a timely, consistent, and thorough manner—and keep accurate records. Charitable or neutral evaluations that don’t … [Read more...]

September 11, 2013

Tip 9: Performance evaluation provides information and justification for demotion, termination, or other disciplinary decisions.

Demotion, termination, and other disciplinary decisions are so sensitive that managers need to deal with these issues very carefully. All employment decisions should be based on the results of performance evaluation, which is a strong tool to protect the company from lawsuits. A manager should … [Read more...]

September 4, 2013

Tip 8: Performance evaluation supports the alignment of organizational and employee goals.

When setting goals, managers and employees should align individual goals to the department goal and the corporate goal to make sure everyone works together purposely toward the same objectives and strategy execution. If employees clearly understand how their roles directly contribute to the success … [Read more...]

August 28, 2013

Tip 7: Performance evaluation can identify training and career development needs for individual employees, for departments, and for the entire organization by using consolidated appraisal data.

On one hand, performance evaluation helps to assess the training and developmental needs for future career growth of the individual employee. For example, a supervisor tells an HR generalist which HR functions he should focus on to move to his next career stage as HR manager. On the other hand, when … [Read more...]

August 14, 2013

Tip 5: Employee morale and job satisfaction improve when employees receive recognition or rewards for their work through performance evaluation.

Performance evaluation provides employees recognition or rewards for their efforts and thus boosts employee morale and increases their job satisfaction. And performance evaluation itself lets employees know they are important to the company when managers take the time and effort to review, document, … [Read more...]

August 7, 2013

Tip 4: Performance evaluation provides information and justification for compensation and promotion.

Accurate performance evaluations help managers promote the right employees. Performance evaluations also help determine pay increases and bonuses for employees. When employers link performance evaluation to pay raises and promotion, it shows that they distribute compensation on a fair and credible … [Read more...]

July 31, 2013

Tip 3: A mid-cycle review of performance gives the manager a chance to monitor the employee’s progress toward annual goals, to coach for improvement, or make a goal adjustment, if necessary.

A mid-year review can provide positive feedback about the employee’s contribution so far, and also give the manager a chance to discuss problematic performance with the employee and work out a solution. Mid-year reviews also help the manager and the employee recalibrate their objectives, if needed. … [Read more...]

July 24, 2013

Tip 2: Performance evaluation provides developmental feedback on the employee’s strengths and skills that need improvement.

Employees can identify their strengths and explore how to build on those strengths through performance discussions with their managers. For example, the manager has noticed that an employee demonstrates talent in writing, so he or she may put the employee in charge of handbook writing. Employees can … [Read more...]

July 17, 2013

Tip 1: Performance evaluation process helps clarify standards and set goals

The performance evaluation process helps employees and managers clarify expectations about job responsibilities and performance standards, and set goals for the coming year.  At the beginning of the fiscal year, the manager and the employee should review the job description to determine the key … [Read more...]

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