What is the primary purpose of an annual appraisal?

The primary purpose of an annual appraisal is to review potential and performance. This process typically involves evaluating how an employee has performed over the past year, discussing achievements, challenges, and areas for improvement. It provides a structured opportunity for both the employee and the manager to engage in a meaningful dialogue about career goals, expectations, and the employee’s overall contributions to the organization.

By focusing on potential and performance, the appraisal not only assesses current capabilities but also identifies opportunities for the employee's growth and advancement within the company. This can involve setting objectives for the upcoming year and ensuring that the employee is aligned with the company’s strategic goals.

While assessing staff satisfaction, providing development opportunities, and identifying customer satisfaction issues are important for organizational health, they are not the primary focus of the annual appraisal process. Instead, these aspects may be more associated with broader employee engagement initiatives or specific training and feedback mechanisms.