• Luanne Musfeld

What’s an Appraisal and Why Does My Business Need Them?

Let’s start with what an ‘appraisal’ is because I find many employers have that “deer in the headlights” facial expression when mentioning the word.





An appraisal, or a performance appraisal, is a process used to evaluate the performance of an employee. It might seem like unnecessary admin which only corporates can afford but when used correctly, it’s a great tool to build a more productive and engaged workforce – which translates to a more successful and profitable business for yourself.


Here are some of the reasons why your business needs them:


Identifying Training Needs

Performance appraisals are the time to address any training needs an employee might have. Identify where their weaknesses in performance are and how the business can assist them in improving through training. Keep in mind that it should also be a voice for your employees; i.e. listen to what their future ambitions are and where they see themselves within the business.

Implementing Strategy

The appraisal process is one of the tools you can use to ensure a new strategy is implemented throughout the organisation.


Determining (and Justifying) Promotions

Through the appraisal system, an employer can see whether an employee is ready for more responsibility and discuss whether they have the capacity to take on more duties. If conducted fairly, it also shows why one employee was promoted as opposed to another employee.

Determining Salary Increases

Performance appraisals might highlight the need for a change in salary and possibly amendments to an employee’s job description.


Constructive Feedback and Recognition

Appraisals provide a valuable opportunity to give employees constructive feedback as well as praise for a job well done. When done correctly, it also helps build trust between employees and management. Employers should never underestimate the value of positive reinforcement and how much it contributes to employee engagement and motivation.

Supporting Documentation

If an employee is dismissed due to poor performance, feedback provided during performance appraisals can strengthen (or weaken) an employer’s case should the two parties end up in arbitration.


If appraisals are done regularly – that could mean biannually, quarterly or monthly – it creates consistency and ensures that individual performance aligns with business objectives.


Need an appraisal form or someone to guide you through the appraisal process? Reach out to Leapfrog HR.


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