Significance of Performance Appraisals
If you are planning to implement performance reviews for the first time, you have come to the right place. This guide will help you understand the significance of performance management and more. So, let’s have a look!
What is a Performance Appraisal?
A performance appraisal is basically a regular review of an employee’s job performance and overall contribution to the company. It helps evaluate an employee’s growth, skills, achievement, or where they are lacking. Performance reviews are used by companies to give employees big-picture feedback on their work – to either give them bonuses/increments or make termination decisions. Performance appraisals can be conducted at any time of the year – quarterly, semi-annually, or annually. Performance appraisal is also known as performance evaluation or review, an annual review, or employee appraisal.
How Does Performance Appraisal Work?
Since companies have a limited budget from which to award raises, performance reviews help organizations to allocate annual evaluations/promotion based on an employee’s performance. They let companies determine which employees contributed to the company’s achievements and growth so employees can be rewarded accordingly.
Why Are Performance Reviews Important?
Performance reviews are not useful only for companies, but for employees as well. They can evaluate their strengths and weaknesses and perform even better in the future. Following are the reasons why performance appraisals are crucial for both employees and businesses.
Helps Understand Job Roles Better
Performance evaluation empowers employees to think about their role within the company. It clarifies any areas where they have questions and gives a clear understanding of job roles. Having a better understanding helps supervisors and employees perform their job duties as all workplace-related ambiguities are eradicated. Each employee is answerable for their own responsibilities and job roles.
Aligning Personal Roles to Organizational Goals
Unarguably, individual performance drives organizational success. A performance review is essential to ensure that each employee understands their job’s responsibilities and the company’s visions. This is how everyone’s work fits into the bigger picture.
Regular Feedback about Performance
It doesn’t have to happen only annually or semi-annually. Regular feedback improves overall communication at the work-place and, most importantly, gives employees a better understanding of the expectations they are being held to. A performance review is a motivational tool, encouraging workers to find their strengths and weakness to become better both professionally and personally.
Career Development
The evaluation of an employee’s performance is an opportunity to set objectives for their career development. Performance management also encourages them to have any additional mentoring/training, which can act as a basis for HR’s development of future succession plans.
Rewards for Good Performance
When employees give their best at work, they are rewarded with bonuses or raises. It’s important to recognize your employee’s efforts and boost their morale so they can perform well in the future, too. It also opens the door to career advancements for both employees and companies.
What’s the Best Approach for Performance Reviews?
Long gone are the days when HR/managers used traditional ways for performance evaluation. Now is the era of technology, and there are many performance review tools available. One of the best performance management tools is SuiteVal – a cloud-based platform that allows you to simplify your organization’s appraisal processes.
It fully customizes whatever questions, roles, and departments a company may have. The powerful tool can manage every aspect of categorizing appraisals and generating insightful reports. All you need is a modern web browser (Firefox, Chrome, Edge, or Internet Explorer) to use this performance review tool.
