Benefits of Conducting Performance Evaluations

As a manager, there’s a good chance you view performance reviews as somewhat of a tedious task. You’re required to complete them on a quarterly, bi-annual, or annual basis, but you don’t really understand their purpose.

On the surface, they might seem like a waste of time, but when properly completed, performance reviews can be extremely beneficial to both you and your employees. Take a look at a few advantages these assessments have to offer.

5 Benefits of Conducting Performance Evaluations

Open the Lines of Communication

More than just a discussion about performance, this is a great time for you to have a one-on-one talk with each person on your team. Find out what projects they’ve enjoyed working on most and least since their last review, so you can assign work accordingly in the future. This is also a fantastic opportunity to ask about any obstacles they’re facing, and what you can do to help.

Create Goals for the Year Ahead

Employee retention is crucial to your company’s success. A performance evaluation is the perfect opportunity to discuss each person’s career trajectory, making it clear you want them on your team for the long-term. Discuss their future career plans and create goals that will allow them to move up the ladder, without having to seek employment elsewhere.

Help Employees Learn and Grow

Chatting about employee performance can sometimes be a bit awkward, but this type of conversation is incredibly valuable. Letting employees know what areas they excel in and where there’s room for improvement promotes growth. Being honest about these subjects allows them to gain a better sense of their strengths and weaknesses, so they can become the best version of themselves.

Gauge Overall Performance

Performance reviews aren’t just beneficial to employees. Taking a long, hard look at each person’s work allows you to really understand who your top performers are. You probably already have an idea, but digging deep leaves no room for interpretation.

This will be helpful when deciding who to promote and how to allot merit-based bonuses. It also makes it easy to see which employees are contributing the least to the team, so you can take proper action.

Provide Consistent Documentation

Hopefully, you’ll never have to fire an employee, but if you do, you’ll need a paper trail. Performance evaluations that highlight poor work or a bad attitude can serve as proof for your decision to terminate the person. If they take legal action against the company, these documents can serve as proof that your decision was warranted.

If you constantly feel like there aren’t enough hours in the day, ECS can lighten your workload. Since 2000, we’ve been providing employer of record services to recruiters and employers, so allow us to assist you. Contact us today to learn how our expertise and suite of services can help your company!

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