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What Is an Employee Performance Evaluation?

What Is an Employee Performance Evaluation?

Employees are your company’s most valuable resource. They are responsible for carrying out your company’s money-making operations while simultaneously serving as brand ambassadors. Some employees, however, perform better than others. With an employee performance evaluation, you can analyze an employee’s performance to determine his or her value to your company. What is an employee performance evaluation exactly?

Overview of an Employee Performance Evaluation

An employee performance evaluation is exactly what it sounds like: an assessment or evaluation of an employee’s performance. They can be performed in different ways. Many companies perform one-on-one evaluations in which a manager or supervisor talks to an employee to evaluate his or her performance. Prior to the evaluation, the manager or supervisor will go over the employee’s records. He or she may look at the employee’s sales revenue, for example. If the employee generated lackluster sales revenue for a given period, the manager or supervisor may discuss it during the evaluation.

Regardless of how it’s performed, an employee performance evaluation is designed to provide insight into an employee’s performance. Companies use them to determine which employees are most valuable to their operations. In the world of business, no two employees are the same. There are high-performing employees, and there are low-performing employees. Employee performance evaluations reveal which employees are performing the best and which employees are performing the worst.

High-performing employee exhibit the following traits:

  • Executes tasks accurately and on time
  • Embraces challenges
  • Eager to please clients and customers
  • Works well with other employees
  • Able to adapt to changes
  • Works fast and efficiently

Advantages of Employee Performance Evaluations

By conducting employee performance evaluations, you can identify potential leaders in your company’s workforce. Leaders are required for many positions. Managerial positions, for instance, need strong leaders who are able to dictate tasks and guide other employees. While you can always find leaders outside of your company, another idea is to look internally within your company. Conducting employee performance evaluations can help you identify leaders within your company. You’ll have an easier time selecting employees who exhibit strong leadership skills if you conduct performance evaluations on a regular basis.

Employee performance evaluations also allow you to remind employees of their duties. In addition to asking questions about an employee’s performance, you can go over the basic duties of the employee’s job. Over time, many employees forget about their job duties. Employee performance evaluations offer a solution. You can use this opportunity to remind employees of their duties.

You can use employee performance evaluations to recognize and show appreciation for your company’s employees. Statistics show that over half of employers believe recognition is an important and effective way to increase employee engagement. When employees are recognized, they are more engaged. During an employee performance evaluation, you can recognize employees so that they become more engaged.

Disadvantages of Employee Performance Evaluations

There are some potential disadvantages to conducting employee performance evaluations. For starters, they can lead to a lower level of employee satisfaction if not performed correctly. Research shows that many employees believe they are evaluated unfairly. If you’re going to conduct employee performance evaluations, you should create a quantifiable rating system. In other words, you should rate the performance of an employee based on quantifiable, measurable metrics. Doing so ensures that all employees are evaluated equally and fairly.

Employee performance evaluations can also be time-consuming. You can’t evaluate all of your employees at once. Rather, you’ll have to evaluate each employee’s performance separately. If you have a large company with 100 or more employees, evaluating their performance may take a while. With that said, many companies only perform them annually. Once a year, they’ll evaluate each employee’s performance. Even if you only perform them annually, though, employee performance evaluations can still prove time-consuming.

Should You Conduct Employee Performance Evaluations?

Considering that they offer both advantages and disadvantages, you might be wondering whether or not to conduct employee performance evaluations. Employee performance evaluations can help you identify leaders, remind employees of their duties and recognize employees for their hard work. On the other hand, they can promote a lower level of satisfaction if performed incorrectly.

You can often assess the performance of an employee through other means. Rather than conducting a performance evaluation, you can look at his or her sales revenue. Many jobs involve sales revenue. Alternatively, you can measure an employee’s productivity to gain a better understanding of his or her performance. Productivity and performance go hand in hand. Employees who are highly productive perform better than those who aren’t productive. By looking at an employee’s productivity, you won’t need to conduct a performance evaluation.

In Conclusion

An employee performance evaluation is a review of an employee’s performance. It’s designed to provide insight into how well an employee is performing his or her job. When you conduct an employee performance evaluation, you’ll measure the employee’s performance.

Brent Hermansen