Performance Appraisal, Here’s The Reason Why Company Should Do It
As a manager or a business owner, performance appraisal can be such an uncomfortable process and consume a lot of time. Summing up a whole year’s work while holding employees accountable for goals they may forget and figuring out how to discussing pay raise. Not to mention collate the results of performance appraisal. It can take months and too much paper works.
But what is performance appraisal? Performance appraisal is a pre-defined performance process that involves evaluating employee’s performance and productivity against the pre-determined set of objectives. There is no sure formula to ensure a universal performance appraisal that works on all company because every company has specific needs.
A research firm, Society for Human Resource Management reporting that 9 out of 10 companies use annual or semi-annual performance appraisal but just 3 of them believed they did them well. Even though many companies did not believe they did well on performance appraisal, companies should still do that. Here are the reasons:
1.Help companies determine the employees’ wage raise and promotion
Each employee’s wage raise and promotion should be directly tied to their performance. Employees who do better than their coworkers usually receive more wage raise and better promotions. Performance appraisal helps to see how well an employee on the period that has been agreed upon.
2. Two ways feedback
With performance appraisal, the manager can give employees positive feedback for their job improvement. Thus, boost the company’s productivity. By giving feedback, the manager also opens up the lines of communication with employees. This enabled a good working relationship and encouraging them to collaborate.
3. Training plan
Use the appraisal to assess your employees’ weaknesses may lead to identifying which area may require additional training and support. Letting your team know that you’re thinking about their development will help them build their ambition and may driving business on to be more productive and aspirational.
There is no best time for all companies to do performance appraisal. Each company has its own best time. It could be monthly, quarterly, half-yearly or annually. Whenever it is, we can help you do performance appraisal for your employees. Our HR software offers three performance appraisal features, that are assessment form, schedule assessment, and real-time result.
You can adjust your objectives on performance appraisal based on your needs. Spend less time and gain more benefits with HRMLabs. Go paperless with your performance appraisal now. Click here for more information about our service and contact us here to get your FREE demo.