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What Is A Performance Evaluation?

A performance evaluation is a comprehensive review of an employee’s job performance based on a certain set of criteria, such as their job description. A manager will look at an employee’s skills, accomplishments, and work over a specific period and determine whether the employee is meeting, exceeding, or failing to meet expectations.

“[A performance evaluation] provides insight into the employee’s overall performance at the company, which helps managers understand what each staff member brings to the table,” said Vinay Amin, founder and CEO of Eu Natural.

These are some other benefits:

Increased employee efficiency. Evaluating your employees’ performance and progress gives you and your team members the insight necessary to set goals and fix problem areas, improving an employee’s work and giving them something to work toward. A performance evaluation shows employees that their work is seen and valued, which can motivate them to work harder to meet the company’s and their individual goals.

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Identification of strengths and weaknesses. You want to see where your employees and your business as a whole are performing well and where you are falling short. Regular employee performance evaluations are a great tool for providing this information, especially since you may see patterns in the performance of multiple employees and be able to fix widespread problems.

Higher employee satisfaction. Employees need to be supported – both when they are excelling and when they are struggling. Employee performance reviews show who is performing well and deserves to be rewarded, and who is struggling and needs help to overcome challenges. When management ignores high and/or low performers, employees tend to feel frustrated, unsupported and disengaged with the company. That can lead to poor production levels and high employee turnover. [Looking to boost your team’s engagement levels? See what several experts think is the key to improving employee engagement in 2021.]

Better communication. Regularly scheduled employee evaluations can open up an avenue of communication that you may not have with your employees otherwise. An annual review is a great opportunity for you to sit down and touch base with an employee about their role and any changes they have experienced or expect, such as a promotion or adjustment in responsibility. For example, you may have an employee who is expecting a raise, but their performance has not been up to par – the evaluation process allows you to explain the areas where they are lacking and what they can do to improve.