Here are some key reasons to formally evaluate employee performance:
- Provide feedback and recognition. Evaluations allow you to recognize employees' accomplishments and areas for growth. This feedback can boost motivation.
- Set goals and expectations. Evaluations are an opportunity to jointly set goals and performance expectations for the coming review period. Clear expectations help employees succeed.
- Identify training needs. Evaluating performance highlights skills that need improvement. This informs training plans to enhance employees' contributions.
- Inform compensation and promotion decisions. Performance against objectives factors into compensation changes, bonuses, and promotion eligibility.
- Document performance issues. If issues arise, past evaluations document performance trends and coaching attempts. This supports disciplinary decisions if needed.