What are the reasons for appraising and employees performance?

Reasons To Implement Performance Appraisals

Businesses may use performance appraisals to establish guidelines for increases in compensation, to identify the best candidates for a promotion, to measure employee strengths and weaknesses and to offer constructive feedback for improvement. Some of the top reasons to implement performance appraisals include the following:

Measuring & Rewarding Employee Performance

Performance appraisals are often performed as a way to reward employees who have a record of working hard or going beyond the call of duty. When job performance is tracked and measured, deserving employees can be recognized with rewards like higher pay, bonuses or other benefits. There are several different ways that employers can track performance, such as through regular one-on-one discussions, formal evaluations based on KPIs or 360-degree evaluations. Data should be collected throughout the year to provide managers with information to review when conducting a performance appraisal.

Improving Employee Development

IDENTIFYING POTENTIAL IN EMPLOYEES

Performance appraisals can also be an effective way to identify potential in an employee. During a performance appraisal, managers have the opportunity to sit down and talk directly with employees to determine where they stand and where they see themselves in the future. With this information, managers can help their employees map out a successful career path that involves enhancing their performance and developing new skills. Performance appraisals can be highly useful in the talent management process and can help ensure that employers are doing their best to retain high-performing employees.

Managing Changing Roles In An Organization

Performance appraisals can be a practical way to share new information with employees regarding changes within the workplace. Whether the business is introducing new technology, developing new products or offering new services, it is important for employees to be aware of these changes. A performance appraisal provides employees the chance to ask questions about changes in the workplace and how these changes will affect their role. Managers are able to explain new responsibilities in a clear and concise manner, set goals based on these new responsibilities and schedule training to learn about new products or technology.

Improving Employee Performance

Allowing Employees To Voice Concerns Or Ideas

Employees sometimes feel like they are not being heard by their managers or employers. This can act as a disincentive and cause employees to do the bare minimum instead of working hard to achieve success. It is important to ensure that all employees know they are being listened to and that their ideas are worthy of consideration. Performance appraisals are an excellent platform for communication and can encourage employees to ask questions, share ideas or discuss their concerns about various topics that may impact their work performance. As performance appraisals are usually one-on-one, employees often feel more comfortable discussing these topics rather than in front of a group or other employees.

Speak To Experienced PEO Consultants

Performance appraisals can provide managers and employers with a wide range of useful information, such as who their best-performing employees are and what incentives help boost productivity. A performance appraisal has the potential to enhance employee engagement, improve communication, encourage transparency and allow for recognition when it is deserved. For more information about why performance appraisals are important, reach out to the experienced PEO consultants at BenefitCorp. Call by phone at 972.737.7875 or request a quote online.

Performance Appraisal is used in different organizations to assess how each employee is on the job. Successful organizations understand the importance of integrating performance appraisal with their performance management strategy.

How is performance appraisal important to an organization?

1. Employee performance

Performance appraisal aims at improving an employee’s performance. It's easier for an employee to identify areas of improvement. Due to identifying these areas, an employee can set goals that will lead to promotions and career advancement.

2. Clarification

The process helps in clarifying the employee’s role and status in the organization. As a result, employees understand what is expected of them. Furthermore, employees can easily perform their roles seamlessly.

3. Building relationships

The appraisal gives an employer and employee an opportunity to have meetings and discuss the performance. The frequent meetings allow an employee to approach the management for discussions, clarify expectations, and identify problems. In addition, this opens communication between them and strengthens their relationships.

4. Motivation

A performance appraisal serves as a motivational tool for employees. Offering bonuses or recognizing an employee of the week, month, or year motivates employees. Offering improvement opportunities, for example, seminars and training to employees looking to improve their skills is also is a key motivator. Therefore,  an appraisal shows employees that an organization is interested in their individual performance and improvement.

What you still don't know about Performance Appraisal

As a result, organizations that incorporate performance appraisal receives feedback and reviews appropriately. Workpay's performance management runs on a Balanced Score Card (BSC).  Also, it allows the input of employee Key Performance Indicators (KPIs)  used to measure employee performance. Interested in evaluating your employees’ performance to gain effective feedback and reviews? Over 50 SMEs in Nairobi and its environs have Registered with Workpay to manage and pay their employees easily and efficiently through our cloud-based platform. Here’s how to manage your employees and payment processes with just a few clicks!

Workpay is a HR and Payroll software company that offers time & attendance, payroll, human resource, leave, expenses and remote teams solutions to businesses across Africa.

But why are they important? And how can HR make a case for using appraisals, if your organisation doesn’t already?

From identifying employee training needs, to spotting your company’s rising stars, employee appraisals have many important uses.

Using appraisals to measure and reward performance

The first and most obvious purpose of employee appraisals is to measure employees’ performance. Your organisation might need to do this for several reasons:

• To make sure employees are working to the required standard
• To gauge which employees are performing the best and therefore eligible for bonuses, pay rises and other rewards
• To address performance issues where necessary

Using appraisals for employee development

Whether staff are performing well or poorly, employee appraisals present an ideal opportunity for HR to identify the next stage in their development. Many organisations use personal development plans (PDPs) within staff appraisals, to direct and record staff development. You can use PDPs to set development goals that the employee should try to reach before their next appraisal.

For under-performing staff, you can use appraisals to identify skills gaps and training needs. Employees can then take the training programmes they need to perform their role better.

Using appraisals to spot potential

Appraisals aren’t just for remedial action. They’re also a moment to sit down with your best-performing employees and to map out their career path. Rather than addressing skills gaps, this may include offering training to develop skills required for promotion.

Appraisals are therefore extremely useful in the talent management process, a major element of which is developing and retaining high-performing employees. Without an effective appraisal system, you might never spot talented individuals who could be the future of your organisation.

Using appraisals to manage changing roles

Almost every job role changes over time, whether because of new technology, new products and services your company introduces, or changes to the size of your team. Employees often need help to understand these changes and how their role is affected. Appraisals are an ideal time to manage this, by:

• Explaining new responsibilities clearly
• Setting clear goals related to the new responsibilities
• Arranging training in new technology or products

Using appraisals to improve performance

The goals you set in employee appraisals don’t just have to be about staff development. You can also challenge employees to improve their performance, and increase your team’s productivity as a result.

Performance goals must be fair and achievable, or they could have a negative impact. Use performance data to set goals where possible — for example, if an employee’s performance has slipped below a previously recorded level, you can use that data to remind them they can do better.

Giving your employees a voice

Finally, don’t forget that employee appraisals aren’t a one-way street. When they have worries, questions, or ideas, the one-to-one setting of an appraisal meeting is a great chance for employees to speak up.

When line managers listen to employees and address their concerns, the result can be a happier workforce. It’s yet another reason appraisals can be important to your organisation.