4 Reasons Why Performance Reviews Are Useful

by Srikant Chellappa May 8,2019

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Reviewing employee performance is a huge responsibility.

It’s not something you can accomplish in the span of a day or a week (you might be able to if you have an exceptionally small organization). Good performance management takes time and effort. It is no wonder then that some organizations might choose to completely skip over the process or even use a very bowdlerized version of it. The end result for both these processes is the same however, employees are dissatisfied.

The thing about performance reviews is, while effort doesn’t directly correlate to good results, it certainly does help, especially when there’s a good review process backing it up.

Also read: 5 Performance Reviews Tips That Improve Employee Experience

However, because of the elaborate nature of performance reviews, many employers debate that performance management should not be used at all. But are they really that useless?

Here are 4 reasons why employee performance reviews are useful, not useless.

Better focus on areas of improvement

A manager should know the areas that their employees are good at and the areas where they need improvement. When you conduct performance reviews, you go through the previous performance records of an employee, which allows you to know where they stand.

Proof of employee performance

Reviewing the performance of an employee can be painstaking but you will have proof which provides the basis for their promotion, transfer or termination. This will actually help you check how dedicated your employees are and help you identify the employees who deserve promotion and who do not.

Performance aligned goals and objectives

Most organizations are confused about their yearly goals. When you have a performance review process, it gives you scope to align performance to goals and objectives of the organization. It gives you a direction to achieve your organizational goals by linking them to individual employee goals.

Also Read: Reinvent Your Performance Reviews With These Simple Tips

Employee loyalty and dedication

Having a review process for employee performance makes employees feel that their work is being valued and being reviewed. This feeling alone can drive a lot of enthusiasm to work. When you review your employee’s performance regularly and tell them where they are good and where they need help, you’ve got yourself a loyal employee who is going to try harder to live up to your expectations!

Do you want to know to implement performance reviews at your organizations? Request a live demo from our experts!

Srikant Chellappa
CEO & Co-Founder of Engagedly

Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2024.

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