8 Undeniable Reasons to Love Performance Appraisals

Performance management is a component of human resource management many HR professionals are not comfortable conducting. In fact, many HR professionals often implement performance management systems and conduct performance appraisals once a year and that’s it!  Performance appraisals should be conducted periodically throughout the year, perhaps quarterly for the process to be effective.  Many companies remain focused on “point-in-time engagement” and have not yet pulled together the disciplines of performance management, . . .  http://bit.ly/2j4pDiD.  While there are many HR challenges in business it is important to capitalize on reasons to Love Performance Appraisals.  



The best appraisal systems identify objectives and KPIs (key performance indicators) so that both manager and employee can agree on goals and timescales that need to be met. A key performance indicator is a quantifiable metric that reflects how well an organization is achieving its stated goals and objectives. Agreed and well-defined aims and goals provide an easy way of measuring success or failure. Key performance indicators come into play on individual and organizational levels. (Performance Management and KPIs) http://bit.ly/28PnCE3. Understanding your company’s goals and aligning your employees’ and teams’ goals with the organization is key to setting performance goals that will be met.



So, why should we love Performance Appraisals? Well, . . .


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1.  Encourage communication and facilitate dialogue.



Performance appraisal time is the perfect opportunity for employees to communicate with managers and discuss job concerns, strengths and weaknesses. It is also the perfect time to find out how the Company is doing. A manager can also use appraisal time to encourage employee suggestions on ways the company and/or management can improve. It’s a great way to reinforce employees know their feedback is needed and valued -- they have a voice within the Organization.  


2.  Chart progress/Design career paths.


The performance appraisal process is a valuable tool for identifying employee strengths and weaknesses and opportunities for promotions. Managers can take this time to reward good performance with more challenging projects and/or promotions.  Rewarding good performance with more responsibility and duties/task and team work is an excellent way to show the Company’s confidence and appreciation for a job well done.


3.  Motivate the unmotivated.


Performance appraisal time is also the perfect time to communicate to the unmotivated employee their performance is less than satisfactory. While communicating this information to the unmotivated employee, it is also important to have a Performance Management Plan (PMP) with a precise plan detailing how the employee is going improve their performance. The PMP should be reviewed and signed by the manager and employee.



4.  Communicate Organizational Strategies.


Performance appraisals are the opportune time to align employee goals with organizational goals. For example, a company that values employee engagement, may align employee engagement with recruiting and on-boarding programs by surveying new hires on the effectiveness of the on-boarding program.  Aligning employees with the company's goals makes them feel like an integral part of the business. Before you can align your staff with your vision for the company, you need a clear picture of where you want to take your business in the future. Be sure to make sure the Company goals are in writing.



5.  Build relationships.


Building relationships can be challenging in the workplace, especially with management. Well, performance appraisals are the opportune time to build relationships across the spectrum. When employees receive excellent appraisals, it is a good idea to not only have the immediate supervisor congratulate the employee on a job well done, but invite other management to call or email the employee to congratulate them on a job well done.



6.  Boost productivity.


Let’s face it – there is nothing like performance appraisal time to boost productivity, right? Traditionally most organizations conduct performance appraisals every 6 to 12 months for employees. Managers should pay attention to employee behavior and performance on a consistent basis and correct as needed and praise when appropriate.  Employees should receive performance feedback more frequently than the annual performance appraisal. In fact, the performance appraisal process is much more effective when feedback is offered to employees more than once or twice a year. When appraisal time rolls around, there should be no surprises for the employee or the employer.


7.  Performance Management Promote Efficacy:


Opportunities and purpose; Positive and frequent feedback; clear direction and goals; A manager that is respected; and fairness. These are all positive components that lead to a long healthy employee/employer relationship. Don’t forget that employees are empowered when they realize their contributions to something greater than themselves -- self-efficacy. 



8.  Building Employee Camaraderie.