Top 5 impacts on employee due to delay in annual appraisal

Delay in appraisal



The employee performance appraisal system is an important tool of any organization by which employer can develop the career of their employees. Performance appraisal has a very strong impact on employee’s growth. Performance appraisal is the best way to demonstrate the appreciation for an employee’s effort.

Employees wait to have performance appraisal evaluation so that they can be rated & rewarded according to their performance & so-on can also be given hike in salary or promotion.

But what if performance appraisals are delayed too much or just postponed to the longer time.

The failure to conduct a performance appraisal can increase organization’s exposure in following ways.

  1. Compensation: – Increment in salary is often based on performance appraisal result. Most of the employees keep their financial goals in mind & that’s why they mark their calendars for annual increases and potential bonuses but if this gets delay it create frustration among employees & they begin to wonder why they haven’t received an appraisal.

  1. Improvement:- As per the bell curve theory most of the employees in any organization are average performer it means they all are marginal level workforce thus they are much needed to be push for performance improvement. So if we delay performance appraisals further we actually delay in performance improvement.

  1. Satisfaction Employees start looking for the opportunities elsewhere whenever they feel ungrateful or when they feel that their employer doesn’t think really thankful of the work they perform. Human capital is the largest investment of any organization and an on-time performance appraisal is the best way to demonstrate your appreciation for an employee’s effort but if this is delayed employees can loose their interest to be in the organization.

  1. Productivity:- Delay in appraisal seriously impacts the organization’s productivity. Employees who exhibit signs of low job satisfaction and low employee morale are less productive as soon as they start feeling thankless their interest towards work decrease & so on this badly impact to the productivity.


  1. Motivation:- An employee performance appraisal play a very important role to motivate an employee to improve his skills & deliver the best out of the sources available but when an employee sees delay in much awaited appraisal his motivation level go on toss and thus he is not motivated anymore to perform his daily job which ultimately impact the business or company.

Let me know if you have any other thoughts to share.

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