Why organisations should do performance evaluation of employees

WHY ORGANISATIONS SHOULD DO PERFORMANCE EVALUATION OF EMPLOYEES?

An organisation working without an effective employee performance reviews or evaluation is not at all contributing towards development of its employees; and this is one of the major reasonswhy good employees leave organisation.

Performance evaluation helps managers and supervisors to identify gaps, give remedial training, recruit new employee and compensate current employees appropriately.

By identifying the core competencies which are aligned with the company’s vision, mission and goals, employers can consistently keep a record of employees who are contributes to the organization. Successful organization encourages employees to set personal objectives which allow them to develop their abilities and at the same time supporting company goals.

Benefits of Performance Evaluation for employees 

A clear and precise communication to employees on what is expected on the job

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Helps employees make better decisions and work effectively

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Increased engagement and motivation by giving overall strategy of team, department and organization

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It encourages employees to learn additional competencies and skills which are valued by the organization

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Performance evaluation helps to recognize each employees’ contribution and thus increases job satisfaction

Benefits of Performance Evaluation for employers 

Training and development programs run by organisations are cost effective, productive and goal oriented

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Helps employers to increase competency level of their employees, even greater than the competitors

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Transparent and accurate record of each employees’ contribution and self-development in the organisation

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Improves communication between employee and management

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Helps creating the framework for constructive feedback and make appraisals more productive

Challenges Defining the parameters of performance evaluation requires time, effort and constant coordination with multiple sources connected with that employee. To get agreement on a set of Key Performance Indicators requires numerous meetings and discussions with multiple company executives. Mapping an individual employee against a particular model is time consuming.

Alignment Organisations can successfully align competencies in the performance evaluation with the company’s strategic goals and objectives. For example if company wants to improve Customer Support and Satisfaction, its employees should be evaluated on communication skills, integrity and convincing ability. By aligning employee development to performance appraisal, organisations can ensure that succession planning, knowledge transfer and training meet daily operations rather than taking preventive actions only when problem occurs. Career development activities will increase the morale and retention of employees.

Implementation Implementing an effective performance evaluation structure in an organisation, starts with analyzing the business environment and noting the job roles required to achieve strategic goals. By identifying the skills and competencies required to complete the tasks, organisations can now look to define their short-term and/or long-term goals as well.

All this creates a solid base for employers to define parameters and evaluate employees consistently and fairly.

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