Why performance evaluations are vital for businesses


Constructive and purpose-built performance evaluations are vital to the success of employees and, therefore, to the success of the organization. When designed and executed to evaluate current business practices, staff progress towards predefined goals. In addition, these reviews can be used as tools to calibrate expectations to reach our business objectives, performance evaluations become a healthy mechanism to improve overall business results. However, when performance evaluations are done to “check the box” on some compliance program requirements, these tools tend to have adverse effects, usually turning into undesired and unsolicited sessions at the end of each fiscal/calendar year.  

Business goals should be drafted, finalized, and socialized at the beginning of the year to ensure the employees to be measured against those goals can incorporate them into their business performance. 


When employees are very cleared as to what is expected of them, they should make every effort to understand these expectations, assess his/her ability to meet such expectations, ask for clarification or assistance if needed, and ultimately delivered the expected results. 

Successful performance evaluations offer the opportunity to examine critical elements of any successful business including;