Employee performance appraisals are mandatory in every company, to meet targets and for it to be successful. In this post, we will be covering the importance of a performance appraisal
One of the oldest techniques in the book, to get your employees to be honest and have a lengthy face-to-face conversation and evaluation of all aspect of their jobs and tasks is through performance appraisal or evaluation. Thus, conducting an effective performance appraisal in your company or organization can serve a number of important functions, as well as offering a big degree of satisfaction, between you and your employee. In this To get familiar with what Performance Appraisals is, check out our detailed post on what performance appraisals is.
Giving and Receiving Feedback
A performance appraisal provides you (as a manager, supervisor or even the director) with the opportunity to exchange information (feedback) with your employee. Areas of the job at which the employee is performing well or underperforming are brought to addressed and discussed, thus, giving the employee a clearer understanding of what he/she needs to improve in order to meet the job requirements.
The reviewer may also uncover issues leading to the underperformance of the employer, either by being unskilled or inexperienced, which the employee can then make adequate solution to the problem, which might be Training and development. You as an employer can also receive feedback from the employee that can help you make improvements in the work environment.
Setting Target and Goals
Apart from reviewing your employees based on previously established targets and goals, another importance of a performance appraisal is it helps set new target and goals. If problems are found during the appraisal, the supervisor or manager and the employee can work together in order to establish new goals as well as developing effective and efficient plans to achieve the goals.
For example, if your employee is a sales person, and the target set for he/she for the previous year is to sell 10 units of whatever you are selling, however, the employee sold 8.
During the appraisal, you can work things out with your employee and come to an agreement of having a new target of 10 or more units, but with better advertisement strategy, increased phone calls, update the information on the website and so much more.
Improving Communication
Not all employees have the boldness to report an issue or an irregular work process (which they identified) to their employers, either due to lack of trust or other factors. Having a performance appraisal tends to increase the level of communication between the employer and the employees. Thus, giving the employees the comfortability to approach his/her employer regarding any issue, before it escalates into a major problem over time.
Measuring Recruitment Efforts
Performance appraisals can provide key information that can help evaluate recruiting practices. This is to say that, if a worker or group of workers in which was hired using a special recruiting process or strategy, scores well on their appraisals, compared to a different scheme. The company might conclude that the special scheme used, is good, effective and promotes the growth of the department at which it was applied, therefore, making this scheme its permanent recruitment strategy. By now, we hope we have gotten through to you on the importance of a performance appraisal on what it brings to the company
As stated at the beginning of this article, employee appraisal is more of a way to know who is who and what the employee contributes to the objective of a company, as well as to know how the employee feels, working in the company or organisation.
Let us do it for you, Intalent Consulting specialises in the Human Resource industry and performance appraisals is one of the many services we offer. Check out our list of services to know more about us.
For further information on how to have an effective employee appraisal in the organisation, please don’t hesitate on contact us at +603 2303 9516 or email us at connect@ihr2u.com