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No law requires companies to conduct job reviews, but businesses that do may have a better understanding of their employees. The information gained from performance reviews can be used to determine raises, succession plans and employee-development strategies.
Performance appraisals can be highly useful in the talent management process and can help ensure that employers are doing their best to retain high-performing employees.
In an employee performance review, managers evaluate that individual's overall performance, identify their strengths and weaknesses, offer feedback, and help them set goals. Employees typically have the opportunity to ask questions and share feedback with their manager as well.
Under federal law, it's illegal to discriminate against a worker on the basis of age (over 40), disability, race, nationality, gender, religion or pregnancy status. Many states add additional categories to this list, too.
Performance evaluations are not mandatory, according to the U.S. Department of Labor. They are a matter between you and your employees or your employees' representative. Performance evaluations help you to determine merit increases and come up with employee development strategies.
Factors to consider for performance appraisalsPunctuality. Punctuality refers to the degree to which an employee is on-time for work.Accountability.Quality of work.Quantity of work.Time management.Teamwork.Reliability.Communication abilities.More items...
The Fair Labor Standards Act (FLSA) does not require performance evaluations. Performance evaluations are generally a matter of agreement between an employer and employee (or the employee's representative).
3 Things to Include in a Performance AppraisalPerformance analysis.Employee potential.Employee deficiencies.
Supervisors are to complete the performance evaluation of the employee and evaluate the employee's performance in meeting the goals with one of the following ratings: Exceptional. Exceeds Expectations.