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HOME - An Alternative To The Traditional Annual Performance Review: The Hooper-Bacal Model
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Should I Continue To Do Performance Management & Staff Appraisals Even If Pay Is Not Based On The Results?
Yes. You should communicate about performance, and continue to do performance management and staff appraisals, even if salary, and raises are not tied to the results. Often managers stop doing staff appraisals once an employee has reached a salary ceiling, and that's based on a misconception that the only reason to do appraisals is to determine pay. Nothing could be further from the truth.
The major reason to use the performance management system is to improve performance (and every employee CAN improve with your help), and to assist the employee in getting aimed at the important goals and objectives you need to achieve in your work unit. Without that performance management process, you will get "drift" in performance over time.
That's why you should continue to do staff appraisals, with an eye to improving performance and helping employees know where they stand. It's easily worth the investment even when salary levels are no long on the table.