Employee performance evaluations are known by many other names also such as performance reviews, performance appraisals and employee appraisals. In spite of the name, the purpose is relatively the same which is to evaluate employee’s job performance. This evaluation is done in accordance to the quantity produced, quality of work, attendance, cost consciousness and so many other factors. Usually, such type of evaluation is executed by an employee’s supervisor or immediate manager. Many people only consider this evaluation as a tool of determining whether the employee is attaining compliance with competencies along with job knowledge requirements. However, it is in reality a very vital tool for employers. In fact, the main goal of this type of evaluation is determining the worth of employees in an organization or business. It is actually a tool that evaluates the earnings and costs attributed to a particular employee’s performance.

Of course, this does not imply that employees who are currently not contributing to the organization’s earnings and satisfying the requirements should be terminated. Instead, after identifying an employee’s weaknesses, the valuation also helps supervisors and managers resolve what support can be given to the employees for bringing their performance to a better level. In some cases, it could involve extra training on particular procedures. In other cases, the training on developmental facets and competencies like efficiency, teamwork and accuracy can be given. Certainly, these are just a few competencies that are considered and there are so many others which are important to determine whether employees will ideally fit within the company. It is generally recommended that companies use employee performance evaluations as it is a very helpful tool for determining a business’s direction.