Performance appraisal is the regular evaluation of an employee’s job performance and contribution to the company goals and objectives. It gives space to understand the employee’s further growth and career development. Also called an annual appraisal or performance review, it is a place to give feedback to the employees, understand their problems and roadblocks, discuss and negotiate pay raise and bonus, and termination if need be. It can be conducted annually, half yearly, or quarterly, depending on the team managers and company.
Usually, performance appraisal is done for the following reasons;
When it comes to raises and bonuses, performance appraisal is a great way to allocate the funds. It is a rather fair method where the raises are based on the employee’s contribution to the company. It is also a place where managers can give additional responsibilities and training to the employees so that they are prepared for future roles.
Usually, this happens quite frequently so that managers get an idea of the employee’s strengths and weaknesses, identify their roadblocks and course correct them if need be. It is a great way to build a mentorship and strong rapport with employees.
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