How keeping up with appraisals drives real results

Does your organisation run employee appraisals? If not, here’s why it should.

First, a bit of background. Appraisals are a formal opportunity for an employee and their manager to reflect on the employee’s performance. They help gauge progress, build relationships, and create dedicated time for meaningful two-way conversations. When done right, appraisals can enhance morale, boost performance, motivate employees, and drive business success. But handled poorly (rushed, biased, or inconsistent), they can do more harm than good.

Where do I start?

For appraisals to be effective, your organisation needs clear goals and expectations. These will naturally differ depending on the employee’s role and level of seniority. Whatever the goals, they should be specific, realistic, and achievable within a defined timeframe. Appraisals must feel fair and objective, and the employee needs to see their value.

Most companies conduct appraisals annually, but you can schedule them more frequently if needed.

Why doing appraisals can benefit the organisation

Improve motivation and performance

Appraisals give you a chance to highlight strengths, identify areas for improvement, and offer constructive feedback. But they’re not just a one-way street. They also give employees space to voice their views. This kind of open, honest dialogue helps employees feel heard and supported.

Working together to set achievable goals empowers individuals to take ownership of their performance. It also creates space to recognise and celebrate wins – and let’s face it, who doesn’t appreciate being praised for a job well done?

Help to reduce employee turnover

Regular appraisals can help reduce employee turnover by giving the employee a chance to raise any concerns, including any disgruntlements they have, before it gets to the point of no return. It also shows the employee you care by taking the time to listen and make improvements. When employees feel valued and heard, they’re more likely to stick around.

Enhance communication

Appraisals are a golden opportunity to connect. They allow time for meaningful conversations, help managers better understand their people, and create space to exchange ideas or suggestions for improvement.

Identify training

They can identify the need for further training in areas, and this could be for all employees or certain individuals that may be struggling; by identifying this and providing the training and offering the employee the support they need, it gives them the chance to improve and address any capability issues early on before they get a chance to escalate.

Help with decision making

Appraisals are a great tool to help with decision making as they can produce a lot of data about your employees, assisting management in making more informed decisions.

Support growth

They also give employees a platform to talk about their ambitions. Managers can then work with them to map out a clear action plan for progression. When employees can see a pathway forward, they’re more motivated to succeed and more likely to stay.

Reiterate expectations

Finally, appraisals are a great opportunity to revisit company values and performance standards. They serve as a useful reminder of what’s expected, and what everyone’s working towards.