The Benefits of Appraisals

by | Sep 14, 2012 | Employers Tips

If you are an employee, do you know if your work is appreciated? If you are an employer, do you know how well your individual staff members are performing? Conducting regular Performance Appraisals (usually every six months or a year) keeps everyone in the picture and provides significant benefits to the organisation and its employees.

FeedbackSignature Staff

Through the performance appraisal process, human resources can give their staff specific feedback on their strengths and weaknesses at work. Delivered appropriately, this feedback gives employees a chance to improve their skills. Similarly, employees also give feedback to the organization. They get an opportunity to discuss with their supervisors the weak areas within their jobs that hinder their performance.

Compensation Adjustments

Once decision makers have evaluated the performance of their employees, they can determine which employee deserves a pay raise. Larger organisations acknowledge their employee’s contributions to the success of the business through pay raises and other benefits. This merit-based performance strategy is most fairly assessed through performance appraisals.

Placement Decisions

Appraisals enable HR Managers to make placement decisions for human resources. Employees can be recommended for promotion, demotion or transfer based on their performance.


If an employee is rewarded for their positive performance by receiving a promotion, the successful ones will enjoy the new sense of leadership. Becoming active team leaders, they will further refine their leadership skills. The boost to their confidence will enhance their ability to accomplish organisational goals.


If an employee is performing poorly, it indicates they need additional on-the-job training. This will show up in a performance appraisal. Proper training then leads to better performance in the future.

Need for Amendments in Job Designs

Sometimes poor performance can manifest through no fault of the employee. An inaccurate job design could be the reason. Performance appraisals provide an opportunity for HR Managers to discover where to make amendments in the job design. If the job design is accurate, employees will perform optimally.

Personal Assistance by Human Resource Department

An employee might be performing poorly at work due to personal reasons such as family, health, or financial issues. The human resource department can provide personal assistance to such employees.


Since performance appraisals provide a specific record of an employee’s performance, any discriminatory behavior towards any employee would show up on these reports. This documentation provides fairness to decision makers as well as employees.


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