Performance Appraisals in HRM: What You Need to Know

By Marianne Chrisos - Published on July 10, 2019
Performance Appraisals in HRM: What You Need to Know

Human resource teams are tasked with responsibilities from recruiting to retention to training and payroll compliance. Just what is performance appraisal, why does your business need an established process, and how can you use performance appraisal as an HR tool to get the best out of your people?

Here’s what most human resource management teams and leadership groups should keep in mind when asking, “What is performance appraisal?”

What is performance appraisal?

Cognology defines performance appraisal as, “the process of evaluating and documenting an employee’s performance with a view to enhancing work quality, output, and efficiency.” These typically inform several areas within an organization.

  • Inform an employee or contributor about if their work is matching expectations
  • Identify development needs and opportunities for improvement, as well as offer encouragement and recognition of a job well done
  • Provide some of the basis for salary and bonus reviews and increases

The process is made up of several parts:


The onset of the appraisal process is when managers – either direct employee supervisors or those in HR – look at what a job description or position notes is necessary and reflects on what is required of their employee to do their job well, including everything from hard software knowledge to personality and behavioral traits. The assessment starts with understanding if the employee does in the fact that display the qualities and attributes necessary and if their work has been judged successful by whatever company metrics are in place. Is the employee on time? Do they meet deadlines? Asking these and other questions can help you start your evaluation.

#Goal review and setting

This can be formal or informal, but most performance appraisals will set long and short-term goals that will benefit the individual and the business. Often a yearly review is measured against a previous annual review to make sure that the employee is tracking towards what was agreed upon.

#Employee meeting

A performance review requires some kind of meeting to actually share feedback on great work as well talk about areas for improvement. It’s also an opportunity to identify opportunities to develop and improve employee performance through ongoing education, training, and other learning possibilities.

#Reward and compensation

Part of creating an environment that encourages everyone to put in their best work and go above and beyond is a culture that consistently strives to reward a job well done. When employees know that their contributions are valued, they are more engaged and productive in their work. The most traditional ways that employees reward performance is in salary reviews and increases or performance bonuses, but some companies choose to use extra vacation time, stock options

What are the best performance appraisal tools?

The best way to create an effective employee performance appraisal process is by ensuring that you have the best tools to gather feedback, collect and store data, and ultimately work to streamline communication and documentation between team leaders and relevant HR personnel.

Here are some options for your organization to consider.

  • Trakstar: This online software helps businesses with modern performance management, as well as offers engagement tools to motivate employees. It offers real-time feedback options, as well as peer-to-peer feedback formats. Trakstar can also help businesses stay more on track with review deadlines and helps to manage the process with employee goal setting features that align goals with overall business objectives.
  • Deputy: This is a full-scale software solution that offers HRM options for businesses from time tracking and payroll to scheduling and staffing. It also offers employers workforce management tools that allow businesses to create custom performance templates and allows companies to better document performance over time, helping to better identify those who need some extra support or training or those who are consistently standout contributors who should be promoted or recognized. Deputy has something to offer for performance management in almost every sector and every industry and can help you organize and implement reviews for every kind of employee.
  • BambooHR: This HRM software helps employers with a number of HR tasks, from hiring and onboarding to benefits, time tracking, and other compensation tasks. With both performance management and employee feedback tools, BambooHR is helping businesses create a better understanding of what drives employee results and enables the best communication and feedback processes possible.

When answering the question “What is performance appraisal look like?” at your business, make sure you’re answering it according to what will be most beneficial for your business.

Analyzing your performance management process and tools can help you offer your employees meaningful feedback that will help to improve their performance, which is good news for their career and your business.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a c...

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