Employee Evaluations: Why They Could Get You in Trouble Later

employee evaluations

With hundreds of thousands of businesses in the US, some are bound to succeed while others are doomed to fail—often because of a lack of startup or ongoing capital, and other times because of a long checklist of things that went wrong. A new company can be especially fragile in today’s competitive marketplace, which is why it must be built on a strong foundation. That includes an employee base that is managed adeptly.

If you are involved as an owner or partner in a startup, there will be a lot to learn—no matter how exceptional or innovative your business model or products and services are. Your team can make or break the business, and strength begins with the hiring process. If available jobs are enticing to the labor force in your area and within the industry you serve, a wide range of applicants will come forth. Good interviewing skills are critical (along with understanding which questions are okay to ask and which are not) as you seek individuals with the skill sets required and personalities that will mesh well in your company.

Once on board, every member of your team must be properly trained and apprised of the policies and procedures you have set in place. Evaluations usually occur at least annually, offering you a chance to praise employees for their contributions (maybe including a raise too), as well as discussing future goals where improvement is needed. This can be a delicate path, however. Whether you or management personnel are conducting the evaluations, they must be performed with complete honesty. If there are problems, continue to work with the team members needing improvement and document everything accordingly.

Evaluations are a necessary tool, and documentation should protect you in the case of a termination that turns into a legal dispute. Documentation that does not back up a reason for termination could cause more than confusion: it could open questions in court if a lawsuit were filed for wrongful termination. An employee who was fired but had nothing indicating potential trouble in their files may allege discrimination or other breaches of the law.

If you have concerns about business or employee issues, consult with Attorney Shane Coons. Our law office represents clients involved in a wide range of businesses and legal issues, and we would be glad to review your case and help you explore your options. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.

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