Advantages & Disadvantages of Job Evaluations

Most companies use job evaluations to measure employee performance over a review period. Evaluations usually cover key functions of an employee’s job, and it is up to management to review the worker’s performance in those areas. Businesses and employees can enjoy a number of advantages when evaluations are fair and accurate. Companies that do not take the time to prepare helpful evaluations can create several disadvantages.

Job evaluations are an effective tool to measure employee progress from one review period to another. Employers can compare scores from past reviews to ensure workers are on an upward trend in their career development. Management is also able to identify workers whose performance has declined to determine if they need additional training or are no longer suitable for the position.

Job appraisals provide the chance for managers to give feedback on employee performance. Evaluations are the most useful when given on a regular basis. Managers must remember to evaluate the employee’s work over the entire review period and not the recent past.

Job evaluations can be very motivating to employees when they are accurate. Managers should use the review to praise outstanding performance and to provide constructive pointers in areas that need improvement. The evaluation should use clear criteria for ratings so workers know what they need to do to have a better review next time.

Job evaluations are not a useful tool if managers do not prepare them objectively. Sometimes, managers' personal biases sway the evaluation to be more positive or negative than it should be. If employees believe the boss plays favorites and does not use objective criteria to evaluate employees, morale will suffer. Reviews are also less effective when managers do not use clear, quantitative metrics to determine appraisal scores.

Many employees dread the evaluation process because it causes them stress and worry. Managers can alleviate anxiety by letting workers know throughout the review period how they are doing. Managers should keep the review process relaxed and they should facilitate a two-way dialogue.

When the scoring on job evaluations is inconsistent, employees may feel that management is not treating them fairly. Evaluations should be set up so all managers and workers know the expectations and scoring criteria for all work categories.