You know how your staff is performing; you know whether or not you want to give a raise to a deserving staff member, so why on earth do you need staff evaluations? For the small business owners who still do not give yearly evaluations, let me give you a few more reasons why this is so important to your business and your staff.
Hiring and retention
Evaluation data can be used to monitor the success of the companies’ hiring and retention practices. For example, how well are the staff members performing who were hired in the past two years? Do you have a high turn-over rate? If so, maybe staff evaluations can open your eyes to why that is, and possibly avoid higher turn-over, thus avoiding more training hours and saving your business money.
Evaluations can also be used to monitor training practices and to assess whether the general quality of the training is improving, staying steady, or declining. If all of your staff are lacking in the same areas, training may be a factor, keeping records of your evaluations will help you identify these areas.
Staff evaluations provide legal, ethical, and visible evidence that staff members were actively involved in understanding what is required of their time and duties, they can also provide evidence of non-discriminatory promotion, pay, and recognition.
These are just a few of the many reasons why evaluations are an important piece to your company. A happy well trained staff can boost the value of your company and turn it into more of an asset.