What is a performance appraisal?
A performance appraisal, also called a performance review, is an evaluation method that employers use to measure an employee’s contributions to their company. According to Investopedia, performance appraisals can occur whenever an employer deems it necessary. They may occur to congratulate an employee and justify a pay raise, identify areas for employee improvement or outline reasons for termination decisions.
Benefits of providing effective performance appraisals
Here are some potential benefits of providing effective performance appraisals within your business, according to Chron, the Houston Chronicle news website:
Improves communication between leadership and staff members
By communicating with your employees about the potential you see in them as well as the improvements they can make, you help foster a healthy professional relationship with your staff members. Employees feel valued as you take the time to help them seek improvement within your company.
Minimizes confusion about job duties
Performance appraisals help employees gain clarification on their job requirements and what is expected of them within your company. This allows employees to feel satisfied with their jobs.
Provides employees with a goal-driven mindset
Performance appraisals inspire motivation to meet job goals employees may have forgotten about after working at your company for a long period of time. Not only can this enhance their productivity, but it can also increase their job satisfaction by giving them a goal to strive for.
Reduces employee turnover rates
Performance appraisals might help reduce employee turnover rates because you set clear expectations and give employees the opportunity to grow within your company. because of this, they may be reluctant to leave your company for another opportunity.
Creates opportunities for career advancement within the company
By conducting performance appraisals, your employees may improve their job performance to the point where they are ready to take on more senior roles within your company.
Factors to consider for performance appraisals
The factors you use to evaluate your employees can vary depending on the role they have within your company, but, there are some common factors that apply to all roles. According to http://www.whatishumanresource.com/, here are some factors to consider for performance appraisals:
Punctuality refers to the degree to which an employee is on-time for work. You may choose to include attendance in this performance factor.
Accountability refers to the process by which employees take responsibility for their actions if an error occurs and understand how their job affects the productivity of the rest of the office.
3. Quality of work
Quality of work is a factor that allows you to assess the overall quality of the work they contribute to your organization.
4. Quantity of work
Quantity of work is a way of measuring productivity within the workplace. Measure the quantity of work by comparing the number of tasks they complete in a given time frame to the needs of the company.
5. Time management
Time-management is the process by which employees meet deadlines and allot specific amounts of time to certain tasks.
Teamwork refers to the degree to which an employee works well with their co-workers.
Reliability can encapsulate factors such as punctuality, productivity and work quality to assess how dependable your employees are.
8. Communication abilities
The degree to which an employee is able to communicate with their coworkers, superiors or subordinates may be an important performance appraisal factor. This includes verbal communication, written communication and interpersonal communication.
9. Leadership capabilities
Especially for those seeking management positions, leadership capabilities show how well a person can lead a team and model exemplary behavior on the job.
10. Skills and job expertise
Another potential factor is the amount of industry knowledge and skills that an employee demonstrates in their daily job duties.