If you don’t think your dog is healthy, you take it to the vet. If your car isn’t working properly, you take it to the mechanic. But every year, you also take your car to get serviced just to check that it’s still running to the best of its ability.
Your company is like a car.
Every reputable company should be doing appraisals at least once a year to ensure that everything is running smoothly and see what can be done to make it more efficient. Here are four reasons why performance management is beneficial:
- Feedback
Performance management is a great chance for employees to get feedback. There is nothing worse than not knowing where you stand, so a yearly appraisal will enable all employees to find out if what they’re doing is beneficial or helpful. It also enables the company in general to get feedback from their employees about what is and isn’t working in the ranks. “Where do you stand?” is such an important question that sometimes it is forgotten about. You focus on the future and keeping your head above water that you forget to focus on what’s happening currently and see if anything can be done to improve it.
Performance management can provide a long-term goal system of bettering the workplace to ensure all staff are reach their full potential. Feedback is key to this.
- Salary review
Appraisals can also be a great opportunity to review salaries. Perhaps some employees contributed to the company receiving a major contract, or worked harder or more efficiently which in turn led to greater profits. Appraisals can be great for discovering what worked and what didn’t, which can lead into the (often) positive discussion of salary reviews. It’s always nice to work hard at something you love and be rewarded for it.
- Productivity
Productivity in the workplace is huge. Your team, when it works properly, is like a well-oiled machine. But sometimes, that machine gets a bit rusty or the gears can grind a bit. This can happen when team members don’t get along well or are just at a standstill with what to do. Have your profits fluctuated majorly in the past year and can this be linked to anything within the company? At the end of the day, productivity in the workplace is what keeps the company running, and an appraisal can allow you to see what works and what doesn’t. Out with the old methods and in with the new can be a great way to look at things after an appraisal has been completed.
- Teambuilding
By knowing which parts and actions of your company are successful, it enables all employees to feel as though they are part of building a stronger business. No one wants to feel insecure in the workplace, and calmly working through each aspect of your workplace enables you to see what is and isn’t working. Performance management is a system which can enable employees to help each other out by noting what is working well and what isn’t. It monitors employees, not just once per year, but over many months to improve a company. This can definitely make a team in the workplace stronger as they strive towards goals.
Your company is like a car – keep it serviced and healthy and it will reward you. Don’t let it break down! Get an appraisal done today!