7 Benefits of Performance Appraisals

Infographic Benefits Of Performance Appraisals


Performance appraisals are a vital tool that contributes to both the success of a business and the wellbeing of your employees. If business at the start of your HR journey, then the topic may be fairly new to you. 

But fear not – in this article, we’re going to discuss what appraisals are and offer seven benefits of appraisals. We’ll then talk about how Performance Management Software can be the key to getting your appraisals right.

What are performance appraisals?

Performance appraisals are a structured process in which employees are given dedicated time with their line manager to discuss their performance within a set time frame. It is an opportunity to identify training needs, discuss how an employee is finding their workload and generally evaluate how they are working.

Read our article detailing the ins and outs of a staff appraisal to get a more comprehensive understanding of the topic. 

What are the benefits of appraisals?

Now we have covered what an appraisal is, let’s explore seven appraisal benefits below:

1. Businesses can measure and review performance

When carrying out appraisals, businesses can measure performance of employees and provide them with accurate and targeted feedback. This can help with identifying areas than an employee may need additional support with, or where they want to explore further.

2. Increases employee engagement

By dedicating specific time towards an employee’s performance, it can help increase overall engagement within your business. Tools such as 360 Feedback can help to collate and share feedback received by colleagues in order to shape the way in which the appraisal is carried out.

3. Encourages open communication

With such busy schedules for both managers and their employees, an important performance appraisal benefit is that it offers specific time dedicated to open communication. By setting this time aside and giving the employee an opportunity to speak freely and offer their opinions about workload, career opportunities and how they can be supported in their role.

4. Helps to identify training and career development opportunities

Performance appraisals can be a valuable tool for pinpointing areas where employees can grow. By discussing strengths and weaknesses, managers can identify skill gaps that could be addressed through training opportunities. This can also help with conversations surrounding career development and growth.

5. Addresses improvement areas

Appraisal meetings can be used as a safe space to discuss how an employee may need to improve in certain areas and provide actionable steps to take to meet these head-on. This could include additional training, mentorship programs or even a change in projects or responsibilities.

6. Provides opportunity for reward and recognition

Using some of the dedicated time to motivate employees by sharing their successes and achievements can be a huge benefit of performance appraisals. This can ring especially true for the employees who often get their head down and don’t shout about the work they do.

7. Manages changes in roles 

Appraisals are not limited to evaluating the current performance metrics of your employees, they can also be a great opportunity to discuss upcoming changes in roles. This could be looking at additional responsibilities, ways of working or even an entire title change.

Using Performance Review Software to help with appraisals

When looking at ways to streamline workloads and maximise the benefits of an appraisal, Performance Review Software can be a game-changer. This tool can help with: 

  • Booking appraisal reviews 
  • Setting up notifications to alert employees to changes to their performance management dashboard 
  • The creation of performance review templates 

By automating many of these processes, you can save valuable time and instead focus on getting the most out of the appraisal discussions themselves. This in turn will help to create stronger working relationships and can help with employee retention.

How PeopleHR can help with performance appraisals

At PeopleHR, we offer Performance Management Software which can help to streamline processes and ensure you dedicate suitable time to performance appraisals and make the most of the conversations you have. Our software goes beyond streamlining tasks; it creates a more structured and data-driven approach to performance reviews.   

Find out more about our all-encompassing HR software and how it can help your business get performance appraisals right.

Jack Tuhey
By Jack Tuhey Sales Executive

Jack Tuhey is a Sales Executive with 7+ years of experience at Access PeopleHR. Passionate about modernising internal processes for businesses and HR professionals, Jack aims to save customers valuable time and resources. With expertise in consultancy, direct sales, and SAAS product demonstrations, he tailors your demos for growth and efficiency.