employee performance appraisals

Employee Appraisals are Essential in 2021

Why are Employee Appraisals Important?


It’s the process of letting your employees know what it is that they are and are not doing well. If you are not giving any kind of performance appraisal at least once a quarter, then you are not you continue ignoring your company, as well as the employee. If an employee doesn’t know what they are doing wrong or that they could still use some improvement in an area, how will they understand their actions? If they are not working to increase their job performance, isn’t that damaging to your business? Your employees do not read minds. You have to communicate openly and honestly.

Considerations when developing an employee appraisal system

surprising employee stats

What are the Top 10 Reasons for Needing Employee Appraisals?

  • Establish clear performance expectations that are aligned with desired business results.
  • Hold employees accountable for clearly defined key performance indicators (KPI’s) objectives, and behaviors.
  • Evaluate performance over a period of time while looking to identify potential behavioral issues.
  • Allows an outlet to provide meaningful feedback, celebrating successes, and identifying areas of improvement.
  • Identify core strengths and weaknesses.
  • Setting individual S.M.A.R.T. goals for your employees.
  • Increases employee participation and involvement and elevates feelings of competency.
  • Increases creativity, innovation, greater employee morale, and satisfaction with the work.
  • No matter how well-defined the dimensions for appraising employee performance on quantitative goals are, judgments on performance are usually subjective and impressionistic.
  • Because employee appraisals provide inadequate information about the subtleties of performance, managers using them to compare employees for the purposes of determining salary increases often make arbitrary judgments.

Surprising Employee Appraisal Stats

According to Clear Company Review: 

  • Companies that implement regular employee appraisals have turnover rates that are 14.9% lower than for employees who receive no feedback.

  • One in five employees is not confident their manager will provide regular, constructive feedback.

  • 24% of workers would consider leaving their jobs if they have managers that provide inadequate performance feedback.

  • Teams led by managers who focus on their weaknesses are 26% less likely to be engaged.

  • 69% of employees say they would work harder if they felt their efforts were better recognized.

  • 21.5% of employees that don’t feel recognized when they do great work have interviewed for a job in the last three months, compared to just 12.4% that do feel recognized.

  • 24% of employees who felt they had not received recognition from their direct supervisor in the past two weeks had recently interviewed for another position, compared to just 13% who had received recognition.

  • 92% of respondents agreed with the assertion, “Negative (redirecting) feedback, if delivered appropriately, is effective at improving performance.”

  • Only 8% of companies believe their performance management process is highly effective in driving business value, while 58% say it’s not an effective use of time;

  • 63% of Gen Z said they want to hear timely, constructive performance feedback throughout the year.

  • 68% of employees who receive accurate and consistent feedback feel fulfilled in their jobs.
  • On a scale of 1-10, managers who gave the right amount of feedback earned an average score of 8.6 from workers.
Client Review

McKenzie Mitchell

“We have worked with HR Service for a couple of years now and I have had nothing but positive experiences with them. They make themselves available to come on-site and perform training for our employees and upper management, we receive monthly calls checking in to see how things are going and if something comes up before that call, I know I can call or e-mail our HR Business Coach and will get a response within hours. Everyone is extremely knowledgeable about current policies and laws that keep our company and our employees safe and compliant. HR Service offers a variety of options, as far as creating a plan for how much assistance the business needs so that you aren’t paying for something you don’t need, but if you are in the middle of a big project and require more help at that time, it is available as well. For a young, startup company that needed help but didn’t require bringing on an executive-level Human Resources specialist, this was far and away from the best option. I would recommend HR Services to anyone and everyone.”

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