Performance appraisals are essential for the growth of a company and the employee. It helps the company to find out whether the employee is being productive or is a liability. It helps the employee to find out where his / her career is heading. It is an essential part of HR management. A performance approval need not be a stressful event for the HR / supervisor or for the employee. This can be a productive platform for the employee to express his / her work related issues and sort it out and for the HR / Supervisor to motivate the employee to contribute more. Following are some of the benefits of performance appraisal.
Employee satisfaction and motivation
A Performance appraisal meeting is a platform where the employee is recognized for his / her good work and it is important to recognize the work done by an employee. Even if the employee has not done a good work, it is important to show that the organization is interested in his / her individual performance and their growth in the company. This motivates the employee to work hard, which in turn, benefits the company. A regular appraisal program can have a deep impact on levels of employee satisfaction and motivation.
Finding out the need for training and development
During an appraisal meeting, the employer can point out the areas where the employee needs improvement. The employee can look at the data and agree with the employer, and then work out a plan for training and development. The training will help the employee to perform better and it will pave the way to future growth. Companies can look at consolidated appraisal data and decide on areas where improvement is needed for individual employees, as well as, for the whole team. Then they can plan for training and development.
Analyzing appraisal data for better recruitment
Appraisal data helps in monitoring the success of a company's recruitment practices. For example, how well the employees who were hired in the past one or two years are performing, how is the attrition rate and so on. Based on it, the HR department can strategize future hiring.
Improving communication between management and employee
Most often, there is a communication gap between the supervisor and the employee, especially when the employee is new to the company. Most of the time supervisor / manager will be too busy to pay proper attention to the new hire. Performance appraisals will help to break that ice, which is good for both the supervisor / manager, as well as, the employee because better communication leads to better productivity.