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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.
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.
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).
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.
A ratings scaleor grading systemis probably the most commonly used performance review method. This method is based on a set of employer-developed criteriawhich can include behaviors, traits, competencies, or completed projectsagainst which employees are judged.
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...?
11 Things to Never Say During Your Performance Review"That wasn't my fault" It's human nature to defend yourself.Yes, yes, yesYou said/you did...But2026"It was really a team effort"This isn't fairCan I have a raise?""That's not part of my job description"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.
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.
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...?