employee appraisals

Employee Appraisals

 Why are Employee Appraisals important?


Employee Appraisals are the process of letting employees know what they are and are not doing well. If you are not giving any performance appraisal at least once a quarter, then you are not ignoring your company and the employee. If an employee doesn’t know what they are doing wrong or 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 your business? Your employees do not read minds. Therefore, you have to communicate openly and honestly.

Employee appraisals are carried out by the employer, usually every six months or every year, and are part of an employee’s yearly review. Employee appraisals can be done formally or informally.

The importance of appraising employees.

  • Establishes clear performance expectations that are aligned with desired business results.
  • Holds employees accountable for clearly defined key performance indicators (KPI) objectives and behaviors.
  • Evaluate performance over a period of time while looking to identify potential behavioral issues.
  • Allows an outlet to provide meaningful feedback, celebrate successes, and identify areas of improvement.
  • Identifies core strengths and weaknesses.
  • Set individual S.M.A.R.T. goals for your employees.
  • Increases employee participation and involvement and elevates feelings of competency.
  • Raises creativity, innovation, excellent 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.
  • Employee appraisals provide inadequate information about the subtleties of performance; managers using them to compare employees to determine salary increases often make arbitrary judgments.

Surprising employee stats.


  • 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 will leave their jobs if they have managers who 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 who don’t feel recognized when they do great work have interviewed for a job in the last three months, compared to 12.4% who think they are identified. 
  • 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 that “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.
  • 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.

“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.”

McKenzie Mitchell

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