An effective appraisal and performance management process can have a significant impact on an organisation’s culture, staff morale and employee engagement levels – all of which enhance employer brand for recruitment and supports the retention of key talent within a business.
A commitment to having appraisal conversations with employees, whether it’s six-month reviews or ongoing one-to-ones, can help to improve the bottom line by aligning individual performance with business objectives. It also supports the creation of a more people-focussed culture and an environment in which employees will want to stay, progress and thrive. Here’s just some of the reasons why.
Recognising and rewarding hard work
Appraisals provide the opportunity to recognise and reward employees, helping to ensure they feel valued for the work that they do. By monitoring performance and progress against objectives employers can assess whether to reward staff with salary increases, promotions or bonuses. It’s also a chance to say thank you and to provide verbal feedback and praise.
Helping employees understand the role they play in company success
Organisations with a great workplace culture are ones where employees feel a real sense of belonging. They understand what the organisation is trying to achieve, are inspired by its mission and values and recognise how their role plays a part in achieving overall success. The discussions which take place during appraisal meetings will help employees to understand how the individual objectives set for them will play a part in the wider business plan.
Monitor your talent pipeline and provide career progression
Regularly looking at performance, and discussing employee’s individual ambitions, will help to identify when people are ready to take on more responsibility, giving them the engaging opportunity to progress their careers and the organisation the chance develop talent and build a strong succession pipeline. Open discussions on performance can help to identify any problems early and provides the opportunity to explore positive solutions.
Maintain employee engagement
In today’s fast-paced business world, it’s more important than ever to maintain a meaningful, two-way dialogue with employees to help keep talented people within your organisation. One of the key enablers for achieving employee engagement is to ensure that employees have a voice and appraisal and performance review meetings can help to fuel discussion and empower staff to share their opinions.
The chance to nip any issues in the bud
Appraisals are a great opportunity for an employee to raise any worries or concerns, or to discuss any barriers which they feel are holding them back. Taking the time to listen to employees and address any concerns helps to create a happier workforce and will continue to fuel a culture of openness and trust.