FREE The Purpose of Employee Evaluation [ 10+ Samples ]

How do you effectively operate a business? Businesses and organizations need employees in order to operate the company on a daily basis. These entities need to have competent employees to ensure that they are effective in performing the various tasks that are assigned to them. To be able to do this, a business will first need to conduct or perform an employee evaluation. Through this, businesses and organizations will be able to understand the strengths and weaknesses of their employees, their skills, and other aspects for the purpose of improvement.

An employee evaluation form is a tool or document that is used by these entities when conducting an assessment or an evaluation of their employees. It contains performance measures, self-evaluation, and other aspects that will help companies identify whether or not a particular employee will need improvement. In this article, you can read about the importance of performance evaluations, the steps in creating one, and some tips. This can be useful especially if you are running a business and you need to create a written evaluation of your employees. Also, to help you start your employee evaluation, we have various employee evaluation form samples and templates available for download in this article.

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What Is an Employee Evaluation?

An evaluation is basically an assessment or an appraisal of something or someone. So how do you accurately define an employee evaluation? An employee evaluation is a company’s assessment of a particular employee/s at a specific period of time. An employee evaluation is an important process in order to determine the various aspects that each employee needs improvement in. Employee evaluations are important in every company and can contribute to its success. Additionally, if you need a meeting evaluation form, we also have samples and templates that are available for download on this site.

Why Is It Important to Conduct an Employee Performance Evaluation?

There are a number of reasons why it is important to conduct an employee evaluation. The reasons are as follows:

• An employee performance evaluation allows businesses to determine whether an employee needs the training to improve his/her skills and knowledge of the assigned tasks or job.
• An employee performance is important since it is the document or tool that will help businesses decide whether or not to promote an employee, increase their salary, or terminate inefficient ones.
• An employee evaluation also allows companies to lay out or highlight an individual or employee’s contributions to the business. This is important, especially when recognizing or awarding your employees.
• Through an employee evaluation, individuals will be able to perform effectively based on the standards of the company.
• A business or company will base their training programs on the employee evaluations that they have conducted.
• An employee evaluation helps companies determine the strengths and weaknesses of their employees as well as the parts that they need training or improvement.

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How Do You Conduct an Employee Evaluation?

Conducting and developing an employee evaluation system is important in order to have an effective work team or employees in the company. To help you conduct your employee evaluation or assessment, the steps in performing one are as follows:

Step 1: Create an Evaluation Form

In every employee evaluation that you conduct, it is important that you do it consistently and fairly to ensure that the results are accurate. To be able to effectively do this, you will need to have a tool or a document that you can use. Before starting your employee evaluation, make sure that you have an evaluation form that will outline all the necessary components that an effective evaluation form should have. Ensure that various areas for assessment are focused on your evaluation form. If you need simple evaluation form samples, there are downloadable templates available to help you with your document.

Step 2: Set Performance Measures

When conducting an employee evaluation, it is important that you have performance measures that will help you perform the evaluation properly. These performance measures will help you determine whether a particular individual or employee’s evaluation meets the standards that have been set depending on the job description or job position that your company is looking for. Having performance measures will ensure that you evaluate a particular employee’s performance objectively.

Step 3: Create Guidelines for Feedback

The main purpose of performing employee evaluations is to provide feedback. It is important for you to set guidelines on how to provide feedback, the kind of feedback that you need to give, and how to get feedback from the individual or employee that you are evaluating. Through providing feedback, you will be able to outline the areas that the employee/s need improvement and what you expect from the individual. You will also be able to get feedback from the employee’s perspective.

Step 4: Develop Disciplinary and Termination Procedures

Businesses and companies perform employee evaluations to improve the performance of their employees. There are cases wherein these employees don’t show improvement even after an evaluation or assessment is performed. If this happens, business should develop disciplinary and termination procedures that should be done to ensure that the overall operations of the business will not be affected. Employers need to provide a verbal or written warning for the purpose of informing that particular employee if his/her faults. If the employee doesn’t improve after the warning that is given, the business will have the right to terminate the employee.

Step 5: Schedule an Evaluation

After you have developed an effective evaluation system for your business, decide when to conduct or perform the employee evaluation. Some companies perform these evaluations once at the same time of every year while others perform them during the employees’ employment duration.

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Elements of an Employee Evaluation Form

An effective employee evaluation form has to contain all the essential elements that every evaluation form should include. Incorporating these elements in your form will ensure that you have a useful and effective evaluation. The elements of an employee evaluation form are as follows:

• Competencies – an employee evaluation form should include competencies or performance aspects. This section is important to be able to identify the various competencies that you will use to determine whether an employee’s performance meets the standards that your company has.
• Goals and Planning – every employee evaluation should specify the goals and objectives that you want the employee to achieve. This section is important especially after the evaluation is done to be able to create steps to improve the employee’s performance. Providing all the important information and tools to the employee is essential to ensure that he/she fully understands what is needed to be achieved and what is expected of him/her by the company or business.
• Rating Scale – a rating scale serves as a measuring tool in the employee evaluation form. It is used to measure the different aspects of the employee’s performance to provide an overall assessment of these aspects. It is also important for the employee to be aware of what needs to be done in order to achieve a specific rating in the evaluation form.
• Strengths and Weaknesses – an effective evaluation form should also include a section where the manager or any assigned individual can provide feedback concerning the employee’s strengths and weaknesses. This is where information on the employee’s positive contributions to the company is written as well as the weaknesses that he/she should improve on.

Tips for Creating and Conducting Employee Evaluations

To help you effectively create and conduct your employee evaluations, we have provided below some useful tips to guide you. The tips in creating and conducting an employee evaluation are as follows:

• Ensure that you set goals before you start the employee evaluation process. This will help you effectively plan and create your employee evaluation.
• Your employee evaluation should be complete and detailed to be able to get the right results.
• Remember to provide honest and constructive criticism to the employee/s to ensure that they clearly understand their shortcomings and mistakes, as well as their contributions to the company.
• Always discuss with the employee regarding the review or assessment that was done.
• Keep your employee evaluation clear and simple. It is important that all the elements in the form can be easily understood.
• Prepare all the essential data and facts that you need before performing or conducting your employee evaluation.
• Ensure that both you and the employee understand the purpose of the evaluation being done, whether it is for employee promotion, pay increase, or for termination.

Additionally, if you need other types of evaluation templates such as a product evaluation samples, training evaluation sample, or a software evaluation form template, we have samples and templates available for you on this site.