Know the importance of performance appraisal and its elements, and learn how to conduct performance appraisals using a digital tool.
Published 28 Nov 2022
A performance appraisal is a periodic method of evaluating and documenting employees’ job performance in relation to the objectives and goals set for them within a specified time frame. Generally, it’s considered part of an organization’s overall performance management system, aimed at determining opportunities for improvement, reducing attrition rate, and boosting an organization’s culture and productivity.
Also referred to as employee evaluation, performance review, or employee appraisal, a performance appraisal is typically devised and conducted by the HR, supervisor, team leader, or team manager.
Importance of Performance Appraisal
The importance of performance appraisal in an organization directly coincides with its advantages. Take a look at these factors and understand the benefits of performance appraisal.
Conducting performance appraisals lets you in on how an employee views the organization. During your one-on-one sessions and regular performance appraisals, part of the process is to ask for specific comments that the employee has regarding team dynamics, policies, and management. Then, leverage these findings and by turning them into actionable insights for your continuous improvement efforts like eliminating manual tasks with process automations.
Ideally, performance appraisals must be a two-way street. Learning what employees need help with allows organizations to implement strategies for training workers more effectively. This is where people analytics become handy, as data and trends generated from such are key to identifying what kind of policies, initiatives, and systems are needed to be carried out. Hence, this benefits an employer’s resource allocation on training and focus on areas that are of utmost priority.
Another notable importance of performance appraisal is that it ultimately puts emphasis on a business’s bottom line. Performance appraisals help employees and managers devise strategies to refocus their tasks, make them realize how their work makes a difference for the company, and align the company’s mission, vision, and values with their tasks and standard processes. This way, an “all hands on deck” approach can be achieved across the organization, allowing for maximum efficiency and streamlined processes toward profit-making operations.
Commonly, organizations, team leaders, supervisors, and managers do performance appraisals to cover the following aspects:
Empower your team with SafetyCulture to perform checks, train staff, report issues, and automate tasks with our digital platform.
Every successful performance appraisal system has these 7 essential elements or components:
Powerful mobile app and software solutions such as SafetyCulture empower organizations to value the importance of performance appraisal more and conduct efficient performance reviews through the help of technology. With SafetyCulture, maximize these smart features and functionalities to improve the way you do your reviews:
Check out these ready-to-use performance appraisal checklists and forms you can download and customize for free:
Patricia Guevara is a content writer and researcher for SafetyCulture. With her extensive content writing and copywriting experience, she creates high-quality content across a variety of relevant topics. She aims to promote workplace safety, operational excellence, and continuous improvement in her articles. She is passionate about communicating how technology can be used to streamline work processes, empowering companies to realize their business goals.
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