Why it is Important for Companies to have Periodic Employee Performance Review?
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Employee review is a key component to measure an individual’s performance in each and every company. It helps employees to set right goals and facilitates better working relationships. Yet, a few companies are ditching the annual appraisal system and finding alternative means to track employee performance. However, if companies ensure fair appraisals to their employees, it can be the best way to boost employee engagement and productivity, both of which will work in the favor of the organization.
Entrepreneur India spoke to a few experts to know how employee performance review can be beneficial for both employees and organizations.
Ensures Goals Achievement:
According to Prof. Lakshmi Murthy, Chief People Officer, ITM Group of Institution, the review should be periodic and structured.
"I read somewhere that what is not asked, never gets done. If the manager does not review the work, the employee gets the feeling that the manager does not care about his/her work. If the goals are set then they should be tracked. The tracking at all levels ensures that the organization's goals are achieved. The feedback should be factual and objective and there should be dedicated time assigned to the discussion," shared Murthy
Builds Trust in the Workplace:
Sam Chopra, Group Chairman, CybizCorp emphasized that the self-evaluations provide key insights of the yearly performance for employees.
"We at CybizCorp follow a 360-degree evaluation for employee appraisals. We give each employee a chance to rate themselves, their peers, their direct managers, and their subordinates. This leads to a healthy and transparent evaluation as one gets to analyze the performance of each team member efficiently. Following a formal structure makes current employees trust the management by following appraisal procedures," he said.
Help Employees Grow Professionally and Personally:
Verónica Aguado - VP HR at Zeotap pointed out a few ways annual appraisals benefit employees and organizations.
"The review allows employees to focus and align with the entire organization and execute against the annual company strategy. It helps them to grow professionally and personally, especially when these performance review sessions are followed by a personal development plan which could include mentoring, cross-functional projects and training amongst others," said Aguado.
A Better Way to Measure Employee Growth:
Though formal performance appraisals can benefit both employee and the employer, Sunil Agarwal, Director, Vinod Cookware feels real-time feedback is an important element of employee performance reviews. Additionally, if an employee is well-prepared for the conversation, they are likely to present valued data to the table.
"Often the employers are too busy to get an insight of the day-to-day employees’ frame of mind, so review is a great way to address and resolve concerns. With every concern deciphered, you get many hands at the table to stretch your goals. However, one major issue with this is setting the goals. The employer has to set optimum goals and not unrealistic targets to stay linked with the everyday new set of challenges and healthy competition," he added.
Agarwal believes in many aspects, reviews not just help the company to assess the achievements and growth, but also the employees’ chronology of a particular product.