Performance appraisals are generally disliked by both employers and employees. The practice, which aims to evaluate the performance and productivity of a company’s employees, has received widespread negative attention and it seems these reports have proliferated in recent memory. Even amidst the negative feedback, most organizations still have a formal performance appraisal process. Performance appraisals, which usually occur on an annual or bi-annual basis, are essential for effective talent management and are viewed as one of the top two most essential human resource operations.
How can organizations reinvigorate their performance appraisal programs for the contemporary workforce? In this study, we explore the most important factors for creating a successful performance appraisal system. We analyze the impact of rewards, recognition, and recurring conversations between manager and employee on sustaining employee performance. The report is a valuable guide for managers and HR leaders when implementing (or revising) their performance appraisal system.