Importance of Employee Appraisals

February 13, 2018

Rahul had a perfect job, with a perfect salary. Yet he decided to quit from his job in just a few months. Why? Because he felt that there was no proper employee appraisal in the organization and that his growth and future in the company were bleak. His colleagues thought it was a foolish decision, but is it really so?

Employee appraisal is an important performance management tool, used by employers all over the world. But what is it that makes it so important?

“A performance appraisal that is conducted effectively leads to greater employee morale, higher productivity, creating a positive culture and improved overall performance and effectiveness of an organization.” 

A majority of employees are likely to quit their job if they feel that they are not being appreciated for their work. Perks do matter, but recognition is also needed. And this is a major reason why employee appraisal will never go out of fashion. 

Here are 5 main reasons why employee appraisals are so important - 

 Measure / reward performances 

Performance reviews are the best occasions to congratulate and thank your employees for their contribution to the organization as well as measure their performance. You need to do this to make sure that all your employees are working to the standard that is expected from them. 

Employee appraisals will also help you understand which of the employees are exceeding your expectations and can be trusted with greater responsibilities, or in other words a promotion. 

Think of an instance when you have an offer for promotion for a single post but 3 employees are potential candidates for it. How do you make your final choice? Performance review is what will help you find the right fit for the role. 

 Manage ever-changing roles 

It is a fact that every job role changes at some point or the other, over time. It could be due to introduction of new technology, launch of new products/services or a change in the team size. It is important for you as an employer to help your employees understand such changes and how it is going to affect their roles and responsibilities. 

An appraisal can be of great help during this time when you can explain new roles to every employee clearly, set new targets and goals for them as well as for yourself and arrange training or demonstration if required.

 Improve performance 

In a perfect world, every employee is punctual, excellent at what he/she does and is full of enthusiasm to take on challenging work, but unfortunately this is not so in reality. There will always be room for improvement and you can bring up this subject during appraisal. 

At, with the help of semantic matching, pre-screening interviews and audio profiles, you can select candidates that you feel will be more deserving and the right fit for your organization. It will give you an idea of what they are capable of and what can be expected from them. 

Challenging employees to perform better is a good way to improve the performance and increase productivity. Using past performance data can also help you in this regard. Say for an instance, if you see that the performance of an employee is not what it used to be, you can show him/her the past data to remind them what they are capable of.

 Get feedback from employees 

Employee appraisals are never a one-sided conversation, it is also an opportunity for you to listen to the other side of the story. Employees will get a chance to speak out and share their problems, worries, give a new idea or suggestion or get answers to their queries. 

When you address the concerns of your employees, you are actually promoting a positive work environment that can lead to a happier workforce. And if your employees are happy, it shows in the quality of their work. 

 Career development 

Apart from the organization’s growth, personal growth of your employees is also important. During a performance appraisal, you can sit down with your best employees and chalk out a proper career path for them. Or you may suggest training courses for some employees that will make them better at work and make them eligible for a promotion. 

Appraisals actually help you in spotting the right talent and retain deserving candidates. Moreover, if employees see their employer taking an active interest in their career, they are sure to put in extra effort which will definitely be a good thing for your organization. 

Remember these 3 important points that you need to keep in mind before giving a performance review to your employees - 

  • Specific - Giving a review as just good, bad or okay doesn’t help the employee in any way and neither will it help you. Instead, you need to be specific about your feedback. Provide proper examples where an employee has performed excellently or poorly so that the communication is clear.
  • Preparation - Being well prepared is very important for every situation. You need to invest some time to prepare for an employee appraisal. If you are reviewing several employees, you need to spend some amount of time on each of them so that you are truly successful in your endeavour.
  • Persistence - Just a meeting and then it’s done - no, a performance review shouldn’t end like that. You have to follow up on what has been discussed and see how you and your employees are faring in the set goals. Keep providing feedback as that is the only way to foster improvement. 

Remember that employee appraisals can create a good relationship and encourage clear communication between you and your employees, which is very crucial for the success of any organization. Register on today and hire the best candidates sourced from a wide pool of talent.