Receiving an evaluation has a significant influence on an employee’s engagement level and views of their immediate manager and organizations. Employees who are given a performance appraisal are more engaged and are more satisfied with their job and the company overall.
Research conducted by the Kenexa Research Institute (KRI), a division of Kenexa, a global provider of business solutions for human resources, evaluated the impact of receiving a performance appraisal on workers’ perceptions of their managers and organizations. The report is based on the analysis of data drawn from a representative sample of workers surveyed in 2009 through WorkTrends, KRI's annual survey of worker opinions.
Across the 12 largest economies in the world, about 60 per cent of employees report having received an appraisal within the past 12 months. Those in Spain are the least likely to report receiving a performance appraisal, while those in the U.S. are the most likely.
The research indicates that receiving a performance appraisal has a significant, favourable impact on how employees rate their pride in the organization and their willingness to recommend it as a place to work. Furthermore, those employees who receive a performance appraisal are more likely to say they intend to stay relative to those who have not received a performance appraisal.
Employees who have received a performance evaluation also have more favourable views of their immediate manager. They are much more likely to state that their managers display the fundamentals of managerial competence: treating employees fairly and doing a good job at managing the team’s work and the team itself.
Additionally, if employees received a performance appraisal, they are more likely to feel a sense of job security, be satisfied with on-the-job training, feel that performance is evaluated fairly, and experience greater feelings of personal accomplishment.
“Human beings have a fundamental need to know how they are doing. It’s simply part of who we are and what we are about. It’s amazing that two-fifths of the world’s workforce is not receiving any formal feedback on their job performance and how they are contributing to their employer’s success,” says Jack Wiley, executive director, Kenexa Research Institute.
Wiley notes that, “When we gauge the positive impact of this important talent management tool, we once again see that building an engaged workforce is often based simply about the fundamentals. In this case, it is about managers and leaders communicating expectations and providing their employees feedback.”
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