Every business that has employees must track their employee’s performance over time to determine if they are or aren’t an asset to the company. Proper performance evaluations are essential to the functionality of the company, and are also an essential piece in the areas of hiring/terminating employees. Performance evaluations also allow employers to see progress in their employees, determine if their compensation needs to be adjusted, and shows what, if any, bonuses should be given. Let’s look more closely at the different areas in which evaluations are so essential.
Evaluations for Measuring Performance Over Time
First and foremost employee evaluations allow employers to see what areas their employees are improving in, and what areas still need improvement. Thorough and regular evaluations also allow employers to put action plans in place should an employee’s performance not be up to par. These evaluations also shed light on areas that need improvement and give employers an opportunity to develop or offer trainings in areas which their employees are struggling. Evaluations should take place at regular intervals so action plans can be addressed and performance can be measured.
Evaluations for Compensation Adjustments
Another important function of evaluations is compensation adjustments. By having regular evaluations with your employees you are able to pause and consider what compensation adjustments need to be made. Compensation adjustments should be made based on the performance of the employee as well as market adjustments on a regular basis so that your pay is competitive and fair. In addition to market adjustments, evaluations also provide employers an opportunity to promote outstanding employees and grant bonuses based on their performance.
Evaluations for Terminating Employment
Performance evaluations can also help employers see where their employees are not improving, or are lacking. Regular evaluations allow employers to set up action plans and trainings for employees who are underperforming. Having regular evaluations also shows areas where employees are not improving, and can help provide justification for termination.
Providing evaluations for employees is essential: it allows you to see who is fit for their position, who deserves a promotion, and who should no longer be with the company. Because evaluations track data about your company, it is essential to have a system in place for collecting this data. At MdE Inc we provide evaluation tracking software that can be as simple or as complex as your needs. Proper tracking and storing of data can help prevent unjust lawsuits or claims following the termination of an employee by showing a “paper trail’ of their inability to meet the company standards. Likewise, a record of outstanding evaluations can help justify a raise or promotion.
If your business is in need of performance tracking software, we’d love to help! Our team can help you determine what software solution is best for your needs quickly so you can continue on with business. Our team of experts will install this software and train any users so that performance evaluations can go smoothly and no time and energy is wasted. If you are ready to look into performance tracking software for your business, give us a call today!