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Performance Appraisal

A performance appraisal helps you to encourage and challenge your employees.

What is a performance appraisal? A defintion

The Performance appraisal is used to assess the competencies of individual employees and is used by employers to provide a comprehensive assessment and promotion. An employee assessment is usually used for change measures, such as a possible promotion or relocation of the workforce or a justified dismissal, and should be granted equally to all employees.Often, employers use regular feedback sessions for such a performance review.

This article deals with the following points:

1. How do I rate my employees? 4 principles

2. What are evaluation criteria?

3. How can I write an evaluation? The core elements

4. Why are assessments so important in companies?

5. How do digital technologies help you to create a performance report?

6. Conclusion

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How do I rate my employees*? 4 principles

A good Performance appraisal method is an important element in strengthening the relationship between employees and their superiors. Employees receive the necessary input through their participation in the company, are shown strengths and aspects for improvement and can have an open exchange about cooperation.

Here you will find 4 relevant principles, which will make it easier for you to start your appraisal with the right mindset:

  1. Fair - The employee appraisal always follows the same criteria defined in advance and is applied equally to all employees.

  2. Objective - The performance assessment is primarily based on facts, i.e. on evaluated performance data and experience of the management positions.

  3. Pre-work - The assessment should only be made after a detailed evaluation of the key figures regarding the productivity of the individual employee.

  4. Regularly - Performance evaluations should be carried out regularly to maintain a regular and intensive exchange between the management level and employees.

What are evaluation criteria?

When collecting relevant data for the performance appraisal, it is useful to define certain categories and to formulate concrete questions with reference to them.

You should include the following general aspects in your employee evaluation:

  • Task management - Which tasks are taken over by the person? How well are they fulfilled (in terms of time and quality)?

  • Effectiveness - Are deadlines met? Are tasks or meetings correctly prioritized?

  • Independence - Are tasks handled independently? Are problems recognized and managed in a goal-oriented manner?

  • Resilience - Is the employee able to work under pressure and to complete tasks optimally even under time pressure?

  • Motivation - Is the employee motivated and committed? Does he/she strive for the best possible performance?

  • Team spirit - Is there a good, productive exchange with colleagues? Are team goals achieved together or rather alone?

  • Flexibility - Are changes in work processes, schedules, etc. well received? Is the employee adaptable?

How do I write a performance appraisal? The core elements

It is important to learn how to integrate the performance evaluation into the daily work routine and how to set up the document correctly. The following elements will help you with the concrete conduction of an assessment letter:


  • Name of the assessor and name of the company
  • Contact details
  • Date
  • Subject of the appraised person

Main part

  • Information on the company and job title of the employee* including the period of cooperation
  • Description of the actual tasks and abilities of the appraised person
  • Assessment of the quality of the work performance
  • Evaluation of social competence, collegiality, etc.


  • Wishes for the future
  • Signature

Why is a performance appraisal so important for companies? 4 relevant reasons

After you have already experienced how to approach performance appraisals fairly and effectively and how they are designed in concrete terms. Can you now find some relevant reasons why companies and employees benefit from a performance assessment?

1. Prove leadership skills

A fair and well-founded assessment as well as a general interest in a continuous exchange with employees is always a strong indicator of leadership competence. By making your employees feel that their questions, worries and concerns are taken seriously and treated equally, and by basing your evaluation of performance quality thoroughly and on sound facts, you create a corporate culture of mutual respect and exchange at eye level.

2. Improve personnel planning

The regular assessment of the competencies of individual employees is an excellent method to delegate tasks to them in a targeted manner and to implement an optimal delegation of responsibilities.

3. Increase performance

Performance appraisals which recognize the potential of the employee and make suggestions for the targeted use of this potential are effective factors for improving the performance of employees. Frequently coworkers can obtain a picture of their personal authority only in the concrete situation of the evaluation discussion, in order to insure coworkers inside of their strengths and tackle weaknesses together is it indispensable discussions regularly to lead and always as mutual exchange instead of as instruction situation to arrange.

4. Ensure a perfect reputation

A Professional and well-prepared performance appraisal strengthens the relationship between the management team and the employee*. Even after the person concerned has left the company, the joint work does not have to end, because a fair and comprehensible treatment will be remembered by employees* in the future as well, which strengthens the reputation of the management and the company in a sustainable way.


  • Ideally, a performance appraisal should be fair, objective, well prepared and carried out regularly.

  • Aspects such as task management, independence, ability to work under pressure, motivation, teamwork and flexibility are typical criteria of a factual job evaluation.

  • With the regular use of employee appraisals, you as a manager prove your competence and optimal personnel organization and promote a motivated corporate culture and the strengthening of the corporate image.

How do digital technologies help you create a performance appraisal report?

The Lumiform App & Software provides digital forms that help you streamline your performance assessment process. Conduct smartphone or tablet performance reviews anytime, anywhere, take notes and assign follow-up actions in real time. Create reports automatically on your mobile device and easily access them online. Free yourself from paperwork so you can focus on conducting effective performance reviews.

To help you get started, we've put together these free forms that you can download, customize and use right away.

Related topics


Featured templates

Employee Appraisal Template

Employee Appraisal Template

This employee appraisal template is used by HR managers or supervisors to evaluate employees during a 1:1 interview. See template

Performance Appraisal Form Template

Performance Appraisal Form Template

Use this performance appraisal form template for the annual performance evaluation. See template

Employee Evaluation Form Template

Employee Evaluation Form Template

Managers use this employee evaluation form template to assess the work of their employees. See template

Peer Employee Evaluation Form

Peer Employee Evaluation Form

Use this employee peer evaluation form to document feedback from the coworkers. See template

Employee Self Evaluation form Template

Employee Self Evaluation form Template

This template is used by employees to tell their supervisor what they have accomplished since the last performance review. See template

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