Many small businesses do not bother with a yearly employee evaluation. After all, there are only a few employees andÂ you don’t needÂ a formal process like this, right? Actually, employees really appreciate a formal yearly evaluation if it is done right.
Besides pointing out areas that need improvement, these evaluations sum up all of your employee’s major accomplishments. Your employee won’t be wondering if he or she is doing a good job. Evaluations spell it out in black and white.
Another benefit of evaluations is that if you have a problem employee, you will have the problem behaviors documented and you can discuss the behaviors and ways to improve them with your employee.