Benefits of Performance Evaluation
Performance evaluations are beneficial for companies to lay out expectations, set goals and standards, have a formal discussion with all employees and set everyone on the same page. Use performance reviews to increase productivity and motivation with information from a portfolio manager in this free video on business strategies.
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Are you considering using a performance evaluation program in your company? Hi this is Roger Groh at Groh Asset Management. And you certainly should as there are great benefits associated with it. The idea of having a formal discussion with an employees where you can set goals and standards and compare them to where they are today will help productivity and help profitability in the business long term. In the old days though, that was the major benefit. Today it's much different. Today performance reviews are really legal ways in which you can limit your liability when you go to fire that employee as you have long determined what the employee has done in relation to the goals and standards that you've setup. Specifics for that, you need to ask your lawyer as they will differ for each city, state and country that you're based in. But it is the major reason to do performance reviews. Is there a benefit to an employee for going through a performance review? You bet, because then he ought to know exactly where you stand. Also if bonuses have been set, you know if you've achieved them or not and you can set the goals for the next period, whatever that might be, week, month, year, 5 years, whatever it might be. And you can setup how that bonus if it's appropriate will be paid. Stock, cash, whatever. Are reviews a good thing? You bet. Don't get too emotional in them, try and keep them to data points that are setup within the formal performance review programs as a way to take some of the emotion out of it. Hope that helps, good luck. I'm Roger Groh with Groh Asset, thank you very much for spending time with me.