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The Importance of Performance Appraisals

Appraisal and performance processes can have a big impact on a businesses company culture. As well as this, they play a key role in staff morale and employee engagement levels. All of these things will increase a company’s brand and support employees within a business.

Being committed to having an appraisal conversation with employees is beneficial to improving your bottom line by coinciding individual performance along with business objectives. It also aids your business by encouraging a more people-focused culture and creates an environment that is conducive for employees, somewhere they want to stay and progress in the future.

Value your employees

To be satisfied and feel competent at the work that they do, employees need to feel that they’re valued in order to produce quality work. A formal appraisal is an ideal opportunity to offer your employees sincere guidance, encouraging quality and well-informed communication.

Employees place value in recognition for what they do, and rightly so. Informing them of what you know, what you are aware of in regards to what you do, and what they’re doing will help you to retain hard-working employees. It is also beneficial for you to hear what your employees have to say and what key areas you should be focusing on in regards to strengthening the business.


Whatever the nature of your business, it goes without saying that those that are constantly driven in the pursuit of their career goals are valuable members of the workforce. Having achievable targets to meet will motivate your employees, and empower them to when these targets are met.

Resolve Issues

Frequently, managers can be engrossed in the day-to-day and find it tricky to gauge their employee’s frame of mind. The appraisal is a good opportunity time to address any concerns you or they might have.

Forge professional bonds

It’s important for employee cohesion for overall productivity and it’s important that managers encourage good relationships within their team. Use the appraisal to align priorities and discuss matters of interest to the business with your team members, much like a brainstorming session.

Thumbs up for a job well done – it is important to give praise as well as constructive feedback
Focus your employees

Appraisals are useful in communicating your vision for team members. This is your chance to clarify and articulate your business vision. It’s also a chance to oversee employees’ promotional expectations. Employees with hopes of progressing and moving forward within the business will benefit from a discussion regarding this.

Training opportunities for your team

Various people in your team will have altering strengths and weaknesses. Use the appraisal to understand your employees’ weaknesses, seeing which areas could require extra training and support. This is beneficial to both you and your employee.

Making sure your team understands that you’re thinking about their development will support and instil in them the ethos of your company, what’s more, pushing the business forward and encouraging a productive and motivated workforce.

Swan Craig Solicitors are a locally trusted and thoroughly regulated law firm, housing qualified solicitors and experienced legal professionals well-versed in UK employment law. With the knowledge, training and expertise to advise you on issues with your employer or working environment, we are authorised and insured to give you legal guidance. With over 18 years of experience, our dedicated team are available at your convenience, so simply contact us today, on everything from disciplinaries to changes in contract.

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