Performance appraisals evaluate your people’s skills, achievements and growth, or help to identify areas for improvement. Your business can use performance appraisals to give employees big-picture feedback on their work and to justify pay increases, bonuses, and these can be a useful tool to refer to if there are performance issues with an employee. Depending on your organisation or business, a useful time to conduct performance appraisals is annually, semi-annual or quarterly.

It is a valuable management tool, which helps to gain feedback, reviews and estimate whether employee performance is effective and discuss what needs to be done for it to improve.

  • Every person’s individual performance will have an impact on the team and will contribute to the overall function of your business, regardless of its size
  • It clarifies your people’s role and status; some of your people might like to know where they stand regarding their job performance and this allows for a culture of full transparency.
  • For some of the people, self-development is the most important benefit for the employee. Performance appraisals provide positive feedback as well as identify areas of improvement helps bring them the best foot forward. It can also provide an opportunity for the employee to create a training plan with their leader so they can improve their skills.
  • They are important for improving communication with you and your team, so you have a better culture
  • If you want to create a culture of growth and development, your people should have a conversation about where the business is going. This will help create space where you and your team can work together to set new goals as well as develop a realistic and achievable plan to reach them.

The process

Each performance appraisal process is unique, depending on the requirements of the company. Hello Monday can work with you to create a bespoke plan that is customised to fit the culture of your organisation. We have done this for several of our clients and here are some of the points we discovered as we worked with them:

  • Your people should be encouraged to drive their own development. They should come up with a set number goals they wish to achieve over the course of the year, including stretch goals which will push them out of their comfort zone and encourage development.
  • The leaders of your business should sit with your people and discuss some of the key competencies for their position should be established and rated by the employee and their leader.
  • One on one conversations are the perfect opportunity to review progress, and this provides a good check point for the employee to see how they are tracking.
  • Make sure you record these and don’t forget to send a follow up email
  • If performance review processes are executed effectively, they will help to support a comprehensive discussion for merit/compensation reviews so that performance can be rewarded from a monetary perspective.


We can help give you advice and support around these changes and help update your work contracts and employment agreements.

For more information, get in touch with us on 09 377 5200 or