As a business owner, it is your responsibility to monitor the ongoing operations and determine if your business is giving the desired and optimum results. And one of the most important aspects of monitoring the operations is evaluating the employee performance. This kind of evaluation is done in terms of work quality, cost consciousness, attendance, productivity, communication and various other factors. Usually, the evaluation is carried out by employees’ supervisor or immediate manager.

People often consider the employee evaluations as a perfect tool to determine whether or not the employee is attaining compliance with job competencies and work knowledge requirements. However, the employee evaluations are an important tool for the employers as they help to determine the value and overall contribution of an employee to the growth of an organization. It is the tool which analyzes the earnings as well as costs attributed to a particular employees’ performance. Of course, this does not imply that the employees are presently not contributing the organization’s overall goals or are not satisfying the needs and requirements. Rather, this helps to determine what assistance can be given to the employees to improve their performance.