The Importance of Performance Appraisals

Most employees (and some leaders I know) shake at the thought of a performance appraisal. The process is actually a positive one and is a good opportunity to let the employees know they are doing an excellent job! If the employee has not been performing well, then you should have already had a conversation regarding that before you get to the performance appraisal.

Performance appraisals are meant to provide a positive outcome for employees. The insights gained from assessing and discussing an employee’s performance can help:

  • Recognise and acknowledge the achievements and contributions made by an employee.

  • Identify succession planning

  • Is there a short-term Incentive Plan or Bonus in place, if not, should there be?

  • Identify and support the need for additional training or education to continue career development        

  • Determine the specific areas where skills can be improve

  • Motivate an employee and help them feel involved and invested in their career development.

  • Open a discussion about the employee’s long-term goals.

There are many variants of performance appraisals used, but my preference is for an appraisal that includes the employee self-evaluating their performance. Your employees will appreciate the opportunity for input and your managers will receive further insight into what motivates and excites the employee. A performance appraisal is an opportunity to increase communication with your team and should form part of continual feedback regarding their performance in their role.

In addition, it will also allow your employees the opportunity to discuss:

  • Goals for performance enhancement and improvement

  • The next steps for the employee’s personal and business development in their job and career.

  • Appraisals add a lot of value to the working relationship between leaders and their teams.

If there’s no formal appraisal system in place, managers may neglect to keep on top of how their team members are performing.  An appraisal system will bring a greater degree of consistency to working relationships and they help by ensuring that employers and employees meet regularly to discuss performance and potential. Experience has shown this can encourage better performance from employees and better recognition of the work being delivered. So don’t delay and put a performance appraisal process in place for your business.

NIC WILLIS