Don’t procrastinate – Evaluate Employee Performance
Employee evaluation, it can be time consuming, it can be a distraction, it is often the thing you put off, it is just a forum in which an employee can request a pay review, right? So why is it necessary to conduct a regular performance review?
Here are five reasons why we at Evalu-8, believe evaluating employees regularly will improve your business:
Increase employee engagement
An employee who receives feedback will be more motivated and engaged than one that does not which could result in them putting in the discretionary effort we all hope to receive from our
employees. When an employee is engaged, their productivity increases and things such as absence days and staff attrition decrease. According to the Conference Board 2006, organisations with engaged employees increased income by 19% compared to those with disengaged employees whose income decreased by 33%.
Protect your organisation
Through performance appraisals you can identify whether the employee is a good fit for your organisation. Are they meeting the requirements of their role? Are they ever likely to? If not, by conducting regular objective assessments of their performance, you will produce an audit trail that could prove invaluable should you need to move them on, making what could be a difficult decision easy in the process.
Improve employee performance
Evaluate employee performance and you will identify training needs in the specific areas they are required and establish precisely where development would make a real difference to performance. You can work with the employee to set out a strategy that will enhance their output and deliver improved performance. Businesses with motivated employees have 51% higher productivity than those that do not (according to Harter, Schmidt and Hayes, 2002).
Reduce employee turnover
If an employee is under performing it does not necessarily mean they are broken and it is time to find the most efficient way of removing them from the business and start over with a replacement. Not only is this risky and time consuming but also there are many costs associated with this approach.
Instead, if you identify specific training requirements and provide coaching, the employee’s performance will improve. They will remain in your organisation, along with the intellectual property they built up over time and they will be more motivated than ever. According to Gallup, 51% of employees are looking to leave their current jobs, 40% outside their current employer.
Align goals and improve communication
Organisations are constantly changing, but when was the last time you told your employees? Performance reviews provide the perfect forum in which to keep employees updated with changes that are taking place throughout the organisation, how they may be affected and how they can contribute towards achieving the same goals. One of the key drivers of employee engagement is the employee understanding how their work contributes to the overall business strategy.
In the most basic terms, remember when you entered into a contract of employment with the employee: the employee agrees to perform specific tasks and the employer in turn pays for that service. Are you receiving the service you were expecting? Does the employee know? Evaluate Employee Performance!
Visit Evalu-8.com to arrange your demo. Let the software do the work for you.