Date Added: June 03, 2013 06:46:35 PM

For some managers, especially those who have taken management courses, giving performance reviews for their employees is just another task they need to do in order to keep their jobs. But this should be treated as more than a mere administrative task for compliance. Employee appraisals are essential for keeping workers in line, to make them aware of what's expected of them and to give them what they deserve in terms of compensation and other rewards. Remember that fair treatment results to happy employees, leading to more productivity and profit for the company. Here are more benefits in giving out effective performance appraisals to people who work for you:

It Motivates People

Performance appraisals make employees understand clearly what their goals are supposed to be. It also makes them aware of their role in the company as a whole. It helps both managers and employees reconcile day-to-day activities with their business objectives. With appropriate performance appraisals, employees will become more aware of what's expected of them with the help of goals, progress trackers, and project management training.

It Rewards Hardworking People

Employee appraisals help reveal the workers who deserve to be given additional compensation and other rewards for jobs well done. It also provides the management an opportunity to recognize which employees need more motivation and training courses so they could work more. Likewise, it also provides the management an opportunity to provide employees feedback on how they are doing with their current positions and how they can deal with certain issues. They can help companies reduce employee attrition and turnover, aiding them in determining which employees are deserving enough to be given rewards for their hard work.

It Provides Legal Protection

This comes in handy if you need to fire people for unsatisfactory performance. Performance appraisals serve as evidence against people who don't deliver what's expected of them and will protect the company against employees who will sue them for getting terminated.
In order to maximize the benefits of performance appraisals, managers must learn how to automate their reviews. Using an automated system will become beneficial for the company in the long-term. Automation can deliver better reviews faster, with more professionalism and more thorough feedback. Performance data can be collected and analyzed easily to give managers useful insights for their appraisals. It makes legal monitoring of the reviews simpler and easier to manage, as well as do away with the necessity of chasing down feedback and review forms.