Disadvantages of Performing an Employee Appraisal

We are always told that employee appraisals, also known as performance reviews, are essential to the overall productivity and employee morale of a company. As managers, we are briefed on the importance of giving feedback and discussing certain things in a performance review to the extent that people rarely question how effective they truly are.

Here we detail the most obvious disadvantages of giving employee appraisals:

#1 It can create a negative experience for the employee

#2 Employees can lie about their concerns or feelings towards their workload in order to impress the employer and avoid causing issues

#3 Performance appraisals are time consuming as one must be done for each individual employee

#4 Due to the time spent on appraisals, productivity will decrease whilst resources are still being used

#5 They are often based on human assessment which can be blind sighted by biased opinions and prejudices

#6 Appraisals can create a stressful environment for everyone involved

#7 Manager performing the appraisal may have a limited perspective and knowledge regarding the employee

#8 Feedback given in a review, if done incorrectly, can cause upset and further issues for the employee

#9 Appraisals given once annually can actually do more damage than good and this is because employees will not have regular feedback in order to remedy any problems on improve on certain areas before being subjected to a review.

#10 Inaccuracy can occur if reports and documents are not kept up to date in line with employee developments and achievements. This would therefore result in a performance appraisal that does not truly reflect the status of the employee.


Whilst employee appraisals have the potential to serve as excellent employee summary systems, they also have the potential of causing more harm than good if not executed correctly.