Performance Appraisal, Benefits of

Where implemented appropriately a performance appraisal can provide numerous benefits to an employer and employee, with examples including the following:
1. Helping with career development by providing an overview of the current situation for an employee, potential progression routes and opportunities within an organisation and relevant industry sector.
2. Identifying strengths and weaknesses for an individual. Areas that can be improved can be readily identified and appropriate guidance, training or qualifications, following a training or learning needs analysis, can be undertaken to address any gaps in skills or knowledge. Where particular strengths are identified these might be utilised to provide support, guidance or leadership to others in these areas.
3. A formal assessment of an individual’s personal performance can be carried out and documented. Discussion would be around this to identify what went well, what didn’t go so well, what areas where causing problems, and what support might be needed to help in areas that could be improved on. If there are actual or perceived problems within a workplace then ideally these would be addressed constructively within an appraisal, aiming to address these before they impact negatively on an individual’s work and the working environment. This area will also include feedback to an individual from what a manager has understood from other workers in the organisation, and this would include positive comments as well as suggestions for self-reflection.
4. To help set goals which challenge and motivate an employee, but ensuring that these are SMART objectives, to which an employee can monitor and measure their success.
5. The breaking down of barriers between a manager and employee. If an appraisal is carried out in a relaxed and informal way, in an appropriate setting, then effective communication can help each individual to better understand each other, with an aim being to go away from an appraisal with both parties being able to more easily communicate with each other as any barriers have been removed.
6. With active engagement of both employee and line manager this process could act as a motivator for change, especially where an organisation is active in continuous improvement, which can often mean regular changes to working practices and requirements from staff.
7. A formal process which allows for clarification of an individual’s job description and expectations from a manager and employer. If there is any element of doubt by an individual, then performance appraisals are ideal vehicles to remove these doubts.
8. The process provides a benchmark on which to assess future appraisals, with both parties being clear on expectations as an outcome of an appraisal.
9. Providing formal, documented, recognition and reward of efforts and achievements, helping to maintain and improve morale and motivation.
10. Providing an opportunity to discuss succession planning with an individual where they may have been identified as a potential individual for promotion to a different role or position within an organisation.