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The three things that you must include in your performance appraisal are:

1. Performance analysis

As a manager or owner, you are tasked with evaluating the performance of employees. A complete analysis should be included in the evaluation so that the both of you understand how well the employee measures up to company standards.

2. Employee potential

The potential of every employee must be assessed. This will allow both you and the employee to understand his or her potential within the company. Employees that meet or exceed standards may be able to take on more responsibility if the need arises.

Assessing employee potential is another means in which a worker will find confidence in their performance and work to even higher standards. By letting an employee know that they have potential for growth within the company, work ethics may be bolstered as a result.

3. Employee deficiencies

A year-end review must also include the deficiencies of an employee. These will be shortcomings that the employee needs to correct to meet company standards. Deficiencies are often accompanied by actions which can be taken to help the employee correct these problem areas.

Training or assistance may be recommended, and giving precise examples of deficiencies will help your employee correct the issue faster.

Employee evaluations are an integral part of any business. This alerts employees of potential growth within a company as well as their overall performance analysis.

With a proper performance evaluation, you will strengthen your business while helping employees correct performance mishaps that may hinder their chances of a raise or promotion. Create your own evaluation form today to begin evaluating your employees.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

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