- Performance reviews are used to review how an employee is performing in the given job position and how the work is benefiting the company as a whole. Some employees may only be completing tasks at the minimal performance level, while other employees may work hard and take projects a step beyond. The feedback the employees get from performance reviews is meant to lead them to overall improvement, especially if they are not meeting the required expectations.
- Employers also use performance reviews as a method of recognizing those employees who are working hard to go above and beyond general requirements. Recognition is often given in terms of positive appraisals or a promotion to a position with more responsibility. A brief mention in the company's internal newsletter with a list of corporate accomplishments is another method of giving recognition.
- Since workers need to work hard to get a positive performance review and a sense of professional approval, performance reviews are also used to motivate employees. For example, the employer may give away an award for the top five employees of the year to those who get the best appraisal during the performance reviews. A monetary bonus or raise may also be included in the appraisal. This personal recognition and monetary gain may motivate people to work harder and ask for more responsibilities and tasks.
- One of the most important reasons why a company would choose to perform employee reviews and evaluations is to ensure that all employees hired by the company are completing work tasks as expected. The performance reviews are used to determine whether the employee's work and help are benefiting the business' overall goals and whether it stays true to the company's mission statement. For example, if the employee is working directly with customers, but being rude when speaking with them, the attitude may not benefit the business.
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