Home About Our Blog How can performance reviews benefit both employees and the organisation?

 

This article aims to identify the positive benefits that a performance review system can have on both organisations and employees when it comes to measuring performance. 

 

 

Performance reviews provide managers with an up to date snapshot of staff strengths and weaknesses. With this in mind, businesses can plan strategically, leveraging employee strengths to create an undifferentiated service or product from competitors.

 

Employment reviews enable organisations to adopt a proactive approach to problem solving through frequent meetings with employees managers have the ability to correct behaviours and improve performance before they affect the businesses bottom line.

 

 

A deeper understanding of your employees’ wants and needs will enable you to tailor training programs, processes & procedures to best suit performance needs. Identifying patterns in problem and high achieving areas can assist in redeveloping training and induction procedures which can lead to an increase in performance and a decrease in costs associated with unnecessary training, obsolete processes & procedures as well as turnover. 

 

 

Performance reviews are a useful tool for building relationships and understanding wants and needs of employees. Performance appraisals require managers to formulate goal plans and strategies tailored to employee’s level of skills, thus enabling employees to reach their optimal performance. This concept focuses on the idea of personal development rather than discipline through realistic goals setting. 

 

In return, managers have the chance to give feedback and praise to employees, which on a regular basis strengthens both employee’s relationships with managers and their affinity with the organisation.

 

 

Although employee reviews main purpose is to administer feedback, employees should also be encouraged during the review to submit feedback, concerns and ideas to the organisation.

 

Employees are a great resource for preventing stagnation within an organisation. Individuals at all levels have day to day experience and insight on how tasks can be improved which as a result could save your business cost and time. 

 

Naomi Oliver is a Nine2Three Human Resource intern currently completing a Bachelor of Media & Communications and a Bachelor of Commerce at the University of Wollongong.

 

Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.