You shouldn't neglect performance appraisals, here is why

Many organisations, especially the small scale ones, often tend to underestimate the importance of employee performance appraisal, as it’s considered a waste of time and money. 

However, overlooking this vital process can cause a great deal of damage to the organisation as appraisals are often the only time where the employee and the supervisor sit down to have a comprehensive face to face discussion covering all aspects of the job. If this opportunity is not given to employees, they might never bring up all the aspects they are not fully satisfied with, areas in which they are struggling, suggestions to improve the business, and so on. This might lead to employees feeling left out and neglected, and in the long run, the organisation can even experience higher employee turnover rates. That being said, one should keep in mind that conducting appraisals just for the sake of it will not deliver tangible results. The management needs to put considerable thought to chose the right appraisal model to fit the organisation. If carried out in the right way, performance appraisal will provide significant value to a company; below are few of the benefits they provide. 

1. Identify strengths and weaknesses


A company is made up of different individuals each bearing their own strengths and weaknesses. The right combination of these qualities is what will determine the successful delivery of projects. Appraisals allow the management to identify the unique qualities (whether they are strengths or weakness), thus enabling them to pick out which employees should be allocated for specific projects. This will ensure that the right employees work together to deliver maximum value to the organisation as well as the clients. 

2. Set goals


Performance appraisals offer the perfect opportunity to not only evaluate the employees based on previously set goals, but also establish goals for the future. This is a great window to regularly remind the employee of what is expected of him/her in a direct, concise manner leaving little to no room for misunderstanding. Appraisals also offer a chance to discuss any shortfalls from the employee and the supervisor can find ways to work together with the employee to overcome obstacles and ensure the next goals are met. 

3. Create compensation guidelines

Deciding on the right compensation for each employee might be tricky at times, therefore, closely tying their benefits to the performance can help. This also helps to keep the employee motivated to deliver at their best by rewarding those who go beyond their duties to contribute to the company. By evaluating the past performance of the employee, supervisors can determine an adequate compensation and keep these competitive with regular review. This is also a good way to retain employees in the long run. 

4. Give feedback

Providing regular and useful feedback to employees plays a significant role in their delivery. Constructive criticism on employees job performance can motivate them to better their work and even ask for help when needed. When employees are kept informed of their performance, they are enabled to up their standards and meet and exceed expectations. One-on-one feedback also allows open supervisor-employee communication, which is essential for any organisation to grow. It allows people to work together and find better solutions to deliver value. 

5. Provide motivation and satisfaction


Depending on the outcome, performance appraisals can leave employees satisfied with themselves and motivated. Compensations are not the only way to get the best out of the employees, combining this with social recognition can deliver even greater results. People like to be recognised and appreciated for their hard work and dedication, and appraisals give the perfect opportunity for a supervisor do to so. This will leave the employee with a sense of satisfaction that will drive him/her to deliver even more in the future. 

6.Training and development 

There is no better time for a supervisor and an employee to discuss and agree upon the types of training and development needed by the employee. While appraising the performance of the employee, it may become clear to the supervisor which skills need to be developed depending on delivery shortfalls. This is helpful to the employee as he/she can be better equipped to meet the demands, and it is also beneficial for the organisation to get a clear picture of its capabilities and the overall training needed. 

Above are only a few of the benefits derived from carrying out regular performance appraisal. These factors contribute to the overall success of the organisation, given that the assessments are conducted in a manner which fits the organisation’s nature and structure. Getting help from a third party might in many cases be the best way to go as this ensures impartiality and privacy, therefore encouraging employees to express their honest opinion. This will enable the management to get a real understanding of where the organisation is heading and what actions they should be taking moving forward. 

Created: September 29th, 2016


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