Employee Reviews

The importance of Employee Reviews in today's market:

In today's fast-paced business world, it may seem like a chore for organizations to spend precious resources planning, developing and engaging in employee reviews. The truth is, however, that most organizations can't afford not to give formal employee reviews. There are three key reasons why every organization should give employee reviews:

1. Employee Reviews help employees become better workers.

All good managers provide regular feedback to employees so that they can develop into skilled workers that will be enhance the organization. Written employee reviews are a way of formalizing this feedback and lets employees know that how they perform counts. Formal employee reviews also allows employees to take a step back from what they are doing, to focus on how well they are doing it. Based on their employee reviews, they can make action plans to improve or alter behavior and set new personal goals. Encouraging people to work to their full potential is the ultimate goal of employee reviews.

2. Employee Reviews can help determine compensation.

As pay-for-performance compensation grows in importance, so too does the need for objective employee reviews. The best evaluation forms serve this purpose and bring clarity to the manner in which employees are compensated. From sales people, who are paid by their ability to "meet plan", to non-revenue generating workers whose goals are less tangible, employee reviews serve to state objectives and then measure the degree to which those employee reviews' objectives are achieved.

3. Employee Reviews can protect organizations.

In today's litigious society, having formal documentation of employee reviews is an important protection device. Detailed records of poor performance and unmet goals in employee reviews can be an effective counter to claims of bias in the case of a dismissed worker and are often held up by the courts as legitimate justification for termination.

Remember that Employee Reviews are only as effective as the importance given to them within the organization.