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4 Key Reasons why Performance Appraisal is Important

By
Carol
Nduta

Performance Appraisal is used in different organizations to assess how each employee is on the job. Successful organizations understand the importance of integrating performance appraisal with their performance management strategy.

How is performance appraisal important to an organization?

Employee performance

Performance appraisal aims at improving an employee’s performance. It's easier for an employee to identify areas of improvement. Due to identifying these areas, an employee can set goals that will lead to promotions and career advancement.

Clarification

The process helps in clarifying the employee’s role and status in the organization. As a result, employees understand what is expected of them. Furthermore, employees can easily perform their roles seamlessly.

Building relationships

The appraisal gives an employer and employee an opportunity to have meetings and discuss the performance. The frequent meetings allow an employee to approach the management for discussions, clarify expectations, and identify problems. In addition, this opens communication between them and strengthens their relationships.

Motivation

A performance appraisal serves as a motivational tool for employees. Offering bonuses or recognizing an employee of the week, month, or year motivates employees. Offering improvement opportunities, for example, seminars and training to employees looking to improve their skills is also is a key motivator. Therefore, an appraisal shows employees that an organization is interested in their individual performance and improvement.

What you still don't know about Performance Appraisal

As a result, organizations that incorporate performance appraisal receives feedback and reviews appropriately. WorkPay's performance management runs on a Balanced Score Card (BSC). Also, it allows the input of employee Key Performance Indicators (KPIs) used to measure employee performance.Interested in evaluating your employees’ performance to gain effective feedback and reviews?Over 50 SMEs in Nairobi and its environs have Registered with WorkPay to manage and pay their employees easily and efficiently through our cloud-based platform.Here’s how to manage your employees and payment processes with just a few clicks!

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