Want to watch this video? Sign up for the course here. Or enter your email below to watch one free video.

Unlock This Video Now for FREE

This video is normally available to paying customers.
You may unlock this video for FREE. Enter your email address for instant access AND to receive ongoing updates and special discounts related to this topic.

Effective appraisals have been proven to transform and revolutionise businesses, this is due to one point alone… successful businesses have successful and driven people.

Appraisals allow companies to focus on their staff and the team they have built.
There are a number of key benefits to both the employee and the organisation for which they work, these include:

• Better communication
• Proving a career path
• Increased confidence and motivation
• and finally, an increase in staff retention and a reduction in recruitment costs.

Let’s look at communication skills first, often employees and line managers don’t get along but they don’t understand why. Problems stem from a lack of communication between these two parties and subsequently leads to frustration and performance issues. Dedicating some specific time for these two parties to have an opportunity to have a formal discussion that focuses solely on the employee.

Successful businesses have good people who want to succeed and to develop their job, into a career. Identifying this at an early stage can support staff retention, reduces staff costs and enables the business to develop naturally.

Lighting the way towards a successful career path, inspires loyalty and stability and can improve productivity. Performance appraisals are a perfect opportunity to address employee’s long-term goals which may not be discussed on a daily basis. Often managers are unaware of the direction that employees wish to follow and as such are not able to motivate and retain these individuals.

Celebrating a job well-done is the easy part of the performance appraisal, however, identifying improvement areas is not so easy. Simply saying ‘well-done’ and praising an employee can have huge benefits in staff morale. With regards to improvement areas, put simply we must accept that we all have areas for improvement and the appraisal meetings is simply an opportunity for a business to help identify how improvement can be achieved.

This process should give employees a sense of investment and value. Often the greatest benefit is that you will see quick, positive results. This is because employees are aware of their current performance and where they need to be. Ownership for results should always be with the employee as they are ultimately responsible for a poor or excellent performance.

A common complaint in the workplace is where employees feel undervalued by their employer, by investing time in regular performance appraisals employees often feel more valued and invested in.

When employees are appraised, they, build valuable skills and knowledge they can use to advance in their careers. They feel supported and encouraged by their manager and the company and experience the pride and satisfaction that come with new challenges.

All in all, appraisals are used as a performance tool used by business to recognise the contribution, to develop the skills and experience of their employees and to provide direction. Where conducted correctly they lead to a supportive and motivated workforce and therefore a highly successful business.