Providing employees with honest feedback and direction promotes efficiency and increases morale in the workplace, and is something an effective leader does on an ongoing basis.
The many benefits of performance appraisal include:
- Improved performance and profitability
- The opportunity to open two-way communication
- Increased job satisfaction and motivation
- Better morale and teamwork
- Improved planning for employee development
- Assistance with possible hourly wage or salary increases
Effective employee performance involves many components. Before conducting a formal evaluation, it is a good idea to gather documents and think about the employee and his or her performance. It is also important to keep an open mind and ask the employee to comment on working in the organization, personal successes and challenges, and any general input. Including the employee in the whole process leads to increased commitment and engagement, and often the person will present observations, ideas, and insights that otherwise may not be addressed.