One in five employers use appraisal-related pay

PERFORMANCE MANAGEMENT

One in five employers use appraisal-related pay

Only a fifth off large organisations surveyed by IRS say appraisal is linked to pay decisions, although a third of private sector respondents make this link.

Formal appraisal systems are widespread among the UK's largest companies according to the results of the IRS survey. Only five out of the 100 organisations surveyed do not already use appraisals, and all of these are planning to introduce these in the near future.

Key survey findings:

• Identification of training and development needs is the most common reason to conduct appraisals, followed by the evaluation of individual performance.
• Seven out of ten employers hold appraisals on an annual basis.
• Over two-thirds of respondents strongly agree with the statement that they are "an essential management tool".

Want to know more?

Title: "Time to talk - how and why employers conduct appraisals", IRS Employment Trends 769/Employment Trends, 7 February 2003.

Methodology: Questionnaires were sent in Autumn 2002 to 1,000 of the largest employers listed in the Personnel Manager's Yearbook.

Sample size: The survey draws on information received by 100 organisations (56 in the public sector and 44 in the private sector), employing 810,797 people.

Availability: Contact the subscriptions department at Industrial Relations Services in London, tel: 020 7354 5858 or visit www.irsemploymentreview.com

Posted 26 February 2003