How Employee Evaluation May Be Used to Increase Employee Retention
When the employee evaluation is approached in an organized fashion by the employee and the manager, it can become a powerful tool for employee development, according to Dr. David G. Javitch, writing on the Entrepreneur website. Not only can evaluations help develop employees, but employee evaluations may be used to increase employee retention. Stemming employee turnover can save the company money in recruitment and training costs, which means that employee reviews can be used to help the company profitability.
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Compensation Plans
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There is a difference between employee pay and compensation plans, according to the Reference for Business website. Pay is what an employee sees in his paycheck, while compensation is the complete employee package, including benefits, time off and any kind of bonus pay. An interactive employee evaluation can gauge how well the total compensation plan is received by each employee. If there are problems identified by the staff in regards to compensation, then the manager can go into more detail with employees and determine what changes in the pay plan will help retain staff members.
Two-Way Communication
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When the relationship between employee and manager involves two-way communication, it increases the confidence that staff members have in management's dedication to employee development, according to the Strategic Human Resource website. That two-way communication is enhanced with a dynamic employee appraisal that includes input from both the manager and the employee. With regular meetings to help check on employee progress and address any issues, the concept of two-way communication is enhanced all year long. This open communication with management helps to increase employee retention.
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Employee Growth
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When an employee has a defined plan for growth and development, it will help to strengthen his desire to work for the company, according to the Gaebler website. During an employee evaluation, the manager and employee work together to develop a developmental program for the employee's future. In the plan, there are provisions to increase employee productivity, expose him to more responsibility and start the employee on the path to management, if that is his choice. Any kind of education or training is outlined and there is a complete developmental plan in place that the employee can follow to succeed as a part of the company.
Job Description
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During a performance evaluation, the manager will bring out the job description and begin discussing job duties with the employee, according to the Strategic Human Resource website. It is the ideal time for the employee to inform the manager of changes that should be made to the job description to make it more accurate. For example, the job description may state that the employee is to spend two hours on outbound customer service calls but the employee has learned that a minimum of three hours is actually required. By updating job descriptions, the managers are able to develop more accurate expectations of their employees. This refinement of expectations will help employees to feel more confident in their jobs and increase retention.
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