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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.
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.
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).
What to Include in an Employee Evaluation Form?Employee and reviewer information. The form must have basic information about both parties involved.Review period.An easy-to-understand rating system.Evaluation points.Goals.Extra space for comments.Signatures.Scorecard.More items...?
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.
However, when performance appraisals aren't done correctly, they can create serious legal problems for employers in addition to damaging workplace morale.Performance Appraisals as Evidence.Discrimination.Inconsistency.Inappropriate Feedback.Over-Rating.Retaliation.
To create a performance evaluation system in your practice, follow these five steps:Develop an evaluation form.Identify performance measures.Set guidelines for feedback.Create disciplinary and termination procedures.Set an evaluation schedule.
What to Include in an Employee Evaluation Form?Employee and reviewer information. The form must have basic information about both parties involved.Review period.An easy-to-understand rating system.Evaluation points.Goals.Extra space for comments.Signatures.Scorecard.More items...?
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.
The form should include clear guidelines and instructions to allow managers and employees to know exactly what information to provide, the meaning of the ratings, and how to get the information they need. When designing your evaluation form, consider your primary purpose for conducting performance reviews.