Employee evaluations have huge effect on satisfaction and motivation levels of a worker. 

These assessment programs provide workers with an acknowledgment for work efforts, which is in fact an ‘incentive’. There are evidences to support the fact that people will sometimes like to get ‘negative recognition’ in place of ‘no recognition’ at all. The assessment program points out worker that the company is really interested in his individual development and performance. This alone will have positive impact on person’s feeling of belonging, commitment and worth. The prevalence and strength of this natural aspiration for individual credit cannot be neglected.

During this discussion of a worker’s performance, the absence or presence of work abilities can become apparent, even to those who refuse training needs. Performance evaluations will make the training need more relevant and pressing by connecting it to performance results and further career aspirations.

The evaluation data can also be put into use to assess the efficacy of changes introduced in recruitment plans. By following yearly details relating to new persons, it is possible to evaluate whether overall quality of staff is staying steady, improving or declining.