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There are five reasons most performance appraisal systems fail. Find out what they are so yours can avoid the same fate

by , 05 January 2015
Employers know they must have a performance appraisal system in place to assess employee performance.

After all, you need to know if your employees are still on track to help you meet your company's goals.

While employers have the best intentions from the start, we often find that their performance appraisal systems fail.

Read on to discover five reasons why so you can make sure your systems achieves its objectives and doesn't fail.

Five reasons most performance appraisal systems fail

Employers get it wrong when they design the performance appraisal system.
They fail to:
1. Get buy in from their employees
When you design your performance appraisal system, you need to make sure your employees buy into it.
They're the people you'll assess. So it makes sense that you make it relevant to them and make sure they support it.
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2. Customise their measurements
The system must help you assess all your employees' performance. But the criteria you use to assess your employees must differ. You must tailor it according to what each employee does.
For example, the criteria to measure the performance of your office cleaner must be different to what you use to measure your financial director.
3. Link the performance appraisal components to their company strategy
You must assess performance with the aim of tracking if the company will be able to achieve the goals set for the period under review, says the Practical Guide to Human Resources Management.
It's important that you gear your employees' individual performance to contribute to the overall success of your business.
4. Provide on-going support to employees
When you put your performance appraisal system in place, make sure there's a way to support your employees.
It takes a few years in most companies for managers and employees to be comfortable with the appraisal process. That's why it's important for you to provide on-going support to your employees.
You must deal with their complaints and issues quickly and effectively.
It's also important to monitor the quality of the appraisal to make sure your managers assess your employees fairly.
5. Review the performance appraisal system
You must keep the performance appraisal system fresh. It must grow with your business; meet your company's needs. And keep up with changing technology and practices.
So make sure you review it often so it doesn't become out-dated and irrelevant.
The bottom line: Your employees are your company's biggest asset and it's crucial you have an effective performance appraisal system to assess their performance.
Now that you know why most performance appraisal systems fail, make sure yours doesn't follow suit.
Recommended Product: Performance Review Software. It's the first performance review software available in South Africa and will simplify the appraisal process for you.

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