Employee Evaluations to Increase Employee Retention

• Maintaining workforce stability, reducing turnover and minimizing attrition form the human resources function referred to as employee retention or retaining talent. Employers that realize the value of human capital devise a number of ways to improve employee retention. One method is restructuring the performance management system. The performance management system helps an organization become successful by monitoring and evaluating employee performance.

Performance Management Systems

• The elements of a performance management system include the employee evaluations, employee recognition and rewards, discipline policies, and informal but consistent, regular feedback supervisors give employees. Of all the elements of a performance management system, the one that receives the most attention is the employee performance evaluation. Depending on the way it is administered, your employee evaluation can improve employee retention.

Employee Evaluation

• Employee evaluations document employees' accomplishments, strengths, weaknesses and professional goals; however, it's much more than just a document. An employee evaluation -- particularly one that addresses every performance standard -- will benefit the employee and employer. Performance standards set the bar for what employees must do to meet or exceed job expectations. Keeping employees informed is a key component in employee retention. Among the reasons employees resign is they feel the line of communication between employer and employee is broken.

Constructive Feedback

• Another reason employees leave their jobs is that they feel unappreciated. Informal feedback on a regular basis serves two purposes. It demonstrates attention to employee needs as well as accomplishments. Informal feedback also conveys to employees that their efforts, experience and expertise are the foundation of organizational success. Constructive feedback, though it might identify an area for improvement, also helps retains employees. It shows an employer cares enough about employee development to provide guidance that helps improve performance.

Professional Development

• Employee evaluations identify training and professional development needs. Retaining talent includes providing the tools for employee success, which in turn promotes company success. Employers that invest in the future of their employees recognize the value of improving human capital. Improving your human capital is an important step in mentoring employees for future roles within the company. Preparing employees for a future with the company is the fundamental concept of succession planning. The U.S. Fire Administration report "Performance Evaluations Developmental or Past Performance; Which is the Right Way to Go?" indicates: "Succession is a proactive on going [sic] practices of attracting, developing, mentoring and retaining employees to assure the mission, vision and values of the organization can be met now and in the future. Another key factor in retaining employees is providing development opportunities based on recognizing an employee's capabilities and aptitude.