Business Case
An effective review system contributes the following business advantages:
- The costs of recruiting are reduced because it improves staff deployment and staff retention.
- Staff development that is appropriate, timely and cost-effective can be ensured.
- Staff who know clearly what their job is contribute effectively to the organisation.
- Productivity is improved when everyone recognises excellent performance.
- Knowing that performance is noticed and appreciated promotes loyalty and commitment.
On the other hand, an appraisal system when poorly set up and carried out can spend time and money for no obvious return and even have adverse effects.