As an employer, you know that motivators determine whether a particular employee would stick to the job or leave the company. Whether your people work in organizations for monetary or nonmonetary reasons, they expect recognition for their work as well as job satisfaction through challenging assignments. Therefore, an effective appraisal and performance management process must be conducted with care and caution in addition to being accorded the importance they deserve.
1. What is performance appraisals
According to MSG website, performance appraisal is defined that “performance appraisals can be occasions for managers share feedback, let the employee know where they are doing well and which aspects they need to improve their performance”. A commitment to having appraisal conversations with employees supports the creation of a more people-focused culture in which employees will want to stay, progress and thrive as well as helps to improve the bottom line by aligning individual performance with business objectives.
2. The importance of appraisals
• Rewards and recognition: Appraisals ensure employees feel valued for the work that they do through recognition and reward. By monitoring performance and progress, employers see which employee would be more beneficial for them in growth terms of the company, as well as assess whether to reward staff with salary increases, promotions or bonuses. However, sometimes rewarding any successes highlighted doesn’t have to be financial, but regularly verbal feedback and praise. It’s a chance for executives team to say thank you for their people’s hard working process and fruitful results.
• New challenges and clear goals: The discussions which take place during appraisal meetings will help employees understand what the organization is trying to achieve are inspired by its mission and values and recognize how the individual objectives set for them will play a part in the wider business plan. Thus, employees feel a real sense of belonging, ownership. Through the process of performance appraisal with ongoing challenges, employees could remain motivated by new goals and experiences.
• Progression and development: Regularly looking at performance helps talented employees map out a career path, control over their career progression by providing clear progression opportunities. Moreover, an organization could not only attract and retain heavy – handed member but also spot and develop potential talent by spending time discussing an employee’s individual ambitions. This builds a strong succession pipeline for your company.
• Prevention of dissatisfaction: When your people feel uncomfortable in the workplace but they don't have a chance to speak out loud, imagine how your retention rate decrease? Through appraisal meetings, employees can raise any worries or concerns, or discuss any barriers which they feel are holding them back. Then employers will have a survey to assess the engagement of each employee, listen to him/ her and address any concerns. Two-way dialogue with employees helps to create a happier workforce and fuel a culture of openness and trust continuously.
In general, performance appraisal is a tool of motivation which increases their strength level and motivate them to the utmost. The next article will be promising with the ways to conduct appraisals.
Let Faro help your organization reach more prospective employees.