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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).
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...
Quality of Work.Goals and Target Achievement.Level of Productivity.Initiative and Motivation.Teamwork and Leadership Skills.Ability to Problem Solve.Written and Verbal Communication Skills.Performance Self-Appraisal.
You don't need to cover every detail of an employee's performance in an evaluation. For most staff positions, the job performance areas that should be included on a performance evaluation form are job knowledge and skills, quality of work, quantity of work, work habits and attitude.
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.
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.
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.
Effective performance management systems typically include the following three broad elements: goal setting, performance review and a performance improvement process.
There are a number of performance appraisal methods, but three performance appraisal methods are 360-degree feedback, forced distribution and management by objectives.