A study of the way organisations use performance appraisals reveals that
most use them to track and improve training, development and performance.
The IRS Employment Review survey of 100 large organisations, employing more
than 800,000 people between them, shows 52 per cent use appraisals either
formally or informally while considering promotions.
Fifty-five per cent use the information gained in succession planning.
The majority of organisations do not link appraisals to reward. Almost 60
per cent do not use appraisals to calculate pay rises and 68 per cent don’t
consider them when determining other rewards such as bonuses.
While many respondents acknowledged a lack of confidence in their own
appraisal systems, 74 per cent claim appraisals are an essential management