As an employer, you want to ensure the quality of the people who work for you. At the same time, you want your employees to be both happy and productive. Giving people a raise that is well deserved is a wonderful incentive for holding onto great employees. Yearly, quarterly, or even monthly, employee reviews can help you get a handle on how your people are doing in the workplace.
Consistency in employee reviews is key. You'll want to come up with a standard review form for everyone to use in order to avoid any potential problems or conflict. But how do you measure just how well an employee is doing? Many employee reviews are based on a sliding scale of one to five, with five being the most satisfactory, and one being needs improvement. Categorize your reviews into sections, dealing with things such as performance, attendance, ability to work well with others, and management potential. Then rate each sub-question on the sliding scale. Many companies take an average of this scale to determine a raise percentage. Sometimes, employee reviews are simply designed as a tool to communicate with employees.
Find out how to identify employee needs.
Once you've completed your employee review, go over each section and question with your employee one on one. Talk to them about things that may need improving, but always remember to praise them on the high points. You don't want your employees walking away feeling discouraged or betrayed. If there are things that need to be changed, emphasize to them why they need changing, and then tell them what steps they can take to improve. If you think an employee has done a stellar job, offer to give them a raise or even to promote them within the company. This sets real examples for others and gives them a goal to achieve. Employee reviews are a great way to gauge the progress of everyone working for you, as well as a way to promote company camaraderie.