Performance appraisals, three little words that mean so much and can make such a difference to employees and employers alike.
Ironically, many employers fear that by implementing annual performance appraisals, their employees’ motivation will be affected. Yet, on the contrary, performance appraisals are the most important motivational tool a company can put in place. A Léger-CRHA survey conducted in 2015 reveals that more than one in three Quebec employees have not had a performance appraisal in the last twelve months. Among those surveyed, 38% said they would like to benefit from a performance appraisal, and in the 18 to 24 age group, nearly 50% would like to have one. We’ll take a brief look at the benefits and advantages that an employee performance appraisal process can bring to a company.
Performance appraisal helps achieve objectives
For employees to be productive, they need to know and, above all, understand clearly and unequivocally what their manager expects of their work and performance. The performance appraisal establishes the basis for these expectations and fosters a productive exchange between the manager and the employee, which in turn leads to the achievement of objectives.
Performance appraisals as a means of recognition
What do the different generations currently on the job market have in common? The desire for recognition. In a society that values recognition, and even more so, that thrives on it, employee performance appraisals win the gold medal for recognition! Employees will be grateful to be recognized for their achievements, for their strengths, but also for their job satisfaction. The appraisal period thus becomes an individual’s annual assessment, enabling him or her to improve weaknesses, discuss difficulties encountered, but above all, to build on strengths that are recognized and valued by the employer.
The performance appraisal, a communication tool between manager and employee
The performance appraisal is often the ideal time for a manager and his or her employee to take time out to discuss and take stock. Many employees look forward to this moment to communicate certain problems, but also ideas or improvements. For them, this moment when the manager is listening and totally dedicated to the meeting is the ideal time for this discussion. The performance appraisal thus becomes a powerful tool for consolidating the relationship, communication and understanding between manager and employee.
Performance appraisals, a way to increase productivity
A performance appraisal is the best time to discuss areas for improvement with an employee. By focusing on two or three areas that need to be optimized, and drawing up a precise plan to achieve objectives within a defined timeframe, the employee can only progress and optimize his or her skills, which will automatically lead to increased productivity and profitability for the company.
Performance appraisals as a means of retaining employees
In these times when skilled labor is becoming increasingly scarce, one of a company’s top priorities is to retain its workforce. An employee who knows his or her worth, but above all feels valued by his or her employer, will be more dedicated and therefore less tempted to leave the organization that hires him or her. The performance appraisal therefore becomes a retention tool in its own right, as it demonstrates with certainty to the employee the value and, above all, the confidence the organization feels in him/her and his/her skills.
Performance appraisal versus training investment
Bill 90, also known as the Skills Act, focuses on improving the qualifications and skills of the workforce. Many employers therefore invest significant sums in the process of developing the knowledge of their resources. The performance evaluation will enable the company to ensure the coherence of its training plan, but above all the quality of the training provided by the suppliers to whom it entrusts this training plan.
Companies often use the magnitude of the task that an employee performance appraisal process imposes on their managers as an excuse for not implementing it, or they justify this decision by saying that the size of their business does not require such a project. Regardless of a company’s sales figures, number of employees or field of activity, employee performance appraisals have proven their worth, and can only be beneficial to all companies that rely on this project to mobilize their employees. There’s no doubt about it: implementing a performance appraisal process is the best way to grow your business!
