UK organisations that manage employee performance poorly have an adverse affect on the company’s success, according to research by Covalent Software.

The corporate management applications provider has found just over half of organisations (57%) have all employees completing annual appraisals. This suggests that the other half fail to see the strategic value in staff performance reviews and, crucially, are unable to align employee and corporate goals for maximum performance.  

In addition, promotions and pay rises are often closely linked to annual appraisals and failure to manage this process effectively results in employee dissatisfaction, affecting productivity and ultimately staff turnover.