HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

Performance Appraisal

What is a Performance Appraisal?

A performance appraisal is a reoccurring review of an employee’s job performance and overall contribution to a company. These appraisals happen as often as a company wishes, often being annual, quarterly, monthly, or weekly. Employers use performance appraisals to evaluate an employee’s skills, achievements, growth, and/or lack thereof.

How important are performance appraisals?

Performance appraisals allow employers to provide positive feedback, and even identify areas for improvement. It allows employees to discuss a developmental training plan with their manager for any skills that need to be improved and provides motivation because they feel managerial support.

To have successful performance appraisals, managers should:

  • Use the company performance appraisal documentation as a conversation starter. Discuss where the employee feels they fall on the document versus where you feel they fall. 
  • Provide ongoing feedback: Giving ongoing feedback allows managers to help employees become successful and nip problems before they become big. 
  • Two-way discussion: Involve the employee in the conversation. This ensures that the meeting is positive, reinforcing and developmental. 
  • Employee self-appraisals: Prior to the meeting, ask the employee to self-appraise themselves. This is a great way to open the meeting up for conversation and discussion.

Related Terms: Performance Management, Company Culture

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