HUMAN RESOURCES / JUL. 22, 2013
version 2, draft 2

Benefits of Employee Evaluations for your Company

Employee evaluations provide companies with the opportunity to provide feedback to their employees. This method of communication is an essential tool in running a company that has happy employees and effective managers. Employees are able to address issues with their managers with regards to workload as well as expectations, whilst managers can provide employees with feedback on their performance throughout the year.

The Process of Evaluating Employees

Done correctly, employee evaluations enable employers to outline what they expect from their employees. This is important because it helps employers reach their business goals effectively as all employees are aware of what they are expected to do. During the evaluation, employers should provide praise, criticism as well as feedback about the individual’s performance in the year and how it is expected to continue and improve. The continuous need for improvement and development is essential for a business that wants to grow.

The following is a brief outline of the benefits of evaluating employees through appraisals or performance review:

Identify Areas of Improvement

Employee evaluations enable the employer to identify the key weaknesses and strengths of their employee. By bringing these to the attention of their employee, they are able to propose areas of improvement whilst offering praise for their strengths. By tackling a weakness and indicating a strength, employers are able to ensure that employees do not feel demotivated after the appraisal.

Motivate Employees

Despite the fact that the majority of workers dread their evaluations, it often works as a method of motivating employees. Employers are able to provide feedback by acknowledging their employee’s achievements throughout the year. This demonstrates that the employer is not oblivious to the hard work the employees put in and that it does not go unnoticed.

Set Targets and Expectations

Lastly, employee evaluations are an opportunity to review the previous year targets and set goals for the upcoming year. Managers can add responsibilities and outline expectations of the employee to ensure that they are aware of what they will be expected to do. Reviewing goals of the previous year works as a motivational tool as employees can see how they have come a long way from their last evaluation meeting. 

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