Once again that time of the year has arrived! It’s the time to enjoy the fruits of your labor for the past year.

Performance appraisal is an activity for which all employees wait eagerly! Last year, we at Naukri surveyed what our users felt about their annual appraisal, and we are back yet again!

But first, let’s understand the factors that affect a successful performance appraisal and its benefits.

Factors affecting performance appraisal

In this section, we will talk about the crucial factors based on which you receive your annual appraisal.


Punctuality reflects an employee's commitment and respect for time. It showcases professionalism and reliability.

Consistently arriving on time for work, meetings, and deadlines demonstrates a strong work ethic, which contributes positively to performance appraisal outcomes.

It sends a message that the employee values their role and the organization's success.


Accountability refers to taking responsibility for one's actions, decisions, and outcomes.

Employees who are accountable exhibit a sense of ownership and demonstrate a commitment to achieving targets and meeting expectations.

Being accountable fosters trust enhances teamwork, and ultimately impacts performance appraisal results positively.


Quality is a vital factor in performance appraisal as it directly influences the value an employee adds to the organization.

Consistently delivering high-quality work, meeting or exceeding established standards, and striving for continuous improvement are crucial aspects of performance assessment.

An employee's ability to consistently produce quality work reflects their commitment to excellence and professionalism.


Reliability is synonymous with consistency. Employers value employees who can be relied upon to deliver results consistently and meet deadlines without constant reminders.

Reliability builds trust and confidence among colleagues and supervisors, positively influencing performance appraisal ratings.


In today's collaborative work environments, teamwork is highly valued.

Employees who actively contribute to team goals, foster positive working relationships, and promote a harmonious work environment are more likely to receive positive feedback during performance appraisals.

A team player's ability to collaborate, communicate effectively, and support colleagues contributes to overall team success.

Leadership Capabilities

Leadership capabilities extend beyond managerial roles. Employees who demonstrate leadership qualities such as taking initiative, motivating others, problem-solving, and decision-making enhance team productivity and contribute to organizational success.

Recognizing and nurturing these leadership capabilities during performance appraisals helps identify potential leaders within the organization.

Effective Communication

Effective communication is fundamental to successful workplace interactions.

Employees who can express ideas clearly, actively listen, and adapt their communication style to various stakeholders contribute to a positive work environment.

Strong communication skills aid in building relationships, resolving conflicts, and promoting collaboration, thus impacting performance appraisal outcomes.

Benefits of an effective performance appraisal

Clear Feedback and Goal Setting

Performance appraisals offer employees valuable feedback on their performance. Constructive feedback helps individuals understand their strengths, identify areas for improvement, and establish specific goals for development.

By receiving objective feedback, employees can focus on enhancing their skills and competencies, thereby increasing their effectiveness and productivity in their roles.

Recognition and Rewards

Performance appraisal provides a platform for acknowledging and recognizing employees' hard work and achievements.

Positive feedback and rewards, such as salary increments, promotions, bonuses, or additional responsibilities, serve as motivators and reinforce the value of an employee's contributions.

Recognition boosts morale, job satisfaction, and overall engagement, fostering a positive work environment.

Professional Growth and Development

Performance appraisal discussions often include conversations about career aspirations and growth opportunities. These discussions help employees and managers identify development areas and create personalized development plans.

Organizations may offer training programs, workshops, or mentorship opportunities to support employees in acquiring new skills and knowledge.

This focus on professional growth empowers employees to reach their full potential, contributing to their long-term career success.

Enhanced Communication and Collaboration

Performance appraisal facilitates open and constructive communication between employees and managers. It creates a dedicated space for discussing job-related matters, clarifying expectations, and addressing concerns.

Regular feedback exchanges promote transparency, trust, and mutual understanding, leading to improved working relationships.

Effective communication and collaboration positively impact teamwork, productivity, and overall job satisfaction.

Alignment with Organizational Objectives

Performance appraisal aligns individual employee goals with organizational objectives. By setting performance targets and evaluating progress, employees can see how their contributions directly impact the company's success.

This alignment enhances employees' sense of purpose, as they understand the importance of their work and how it supports the organization's mission and vision.

Opportunities for Skill Enhancement

Performance appraisal identifies skills gaps and areas that require improvement. This insight allows employees to seek professional development opportunities tailored to their needs.

Organizations often provide resources and support for acquiring new skills or attending training programs.

By enhancing their skill sets, employees become more versatile, adaptable, and valuable assets to the organization, increasing their career opportunities.

Personal and Career Reflection

Performance appraisal offers employees an opportunity for self-reflection and self-assessment. It encourages individuals to evaluate their performance, identify achievements, and recognize areas for growth.

This self-awareness enables employees to take ownership of their professional development and make necessary adjustments to improve their job performance and career trajectory.

Fairness and Transparency

Performance appraisal, when conducted fairly and transparently, ensures that employees' contributions are recognized objectively. It provides a standardized evaluation process, eliminating bias and favoritism.

Employees appreciate the opportunity for a fair assessment, as it instills confidence in the organization's commitment to meritocracy and equal opportunities.

The Appraisal Results

Last year, Naukri ran a survey asking about the Annual appraisal of FY 2021-22. Let’s find out how the Annual appraisal for FY2022-2023 went for employees!

As per the survey conducted by Naukri, a significant portion of jobseekers, approximately 35%, received less than a 10% increment. While this percentage may seem relatively high, it indicates that a substantial number of individuals faced challenges in finding new employment or achieving significant progress in their current roles.

Around 43% of jobseekers demonstrated a growth rate ranging between 10% and 20%. This indicates a moderate level of success, with these individuals experiencing a noteworthy improvement in their job prospects compared to the previous year. Their efforts in exploring new opportunities, upskilling, and networking have resulted in tangible career advancements.

Source: Naukri

On the other hand, 12% achieved a growth rate of 20-30%. These jobseekers exhibited a commendable level of dedication and strategic planning, resulting in a considerable improvement in their employment prospects.

Their proactive approach, continuous learning, and ability to capitalize on market trends contributed to their success in securing new positions or obtaining promotions.

While only 9% reported receiving more than a 30% increment. These jobseekers demonstrated exceptional performance and exhibited remarkable skill and expertise in their respective fields.

Their ability to navigate the job market, showcase their unique value proposition and establish themselves as industry leaders contributed to their significant career advancements.

Overall, the annual appraisal cycle data reflect diverse experiences and outcomes of jobseekers. While a significant number of individuals received less hike in this appraisal cycle of FY 22-23, substantial proportions of jobseekers also secured high increment levels of success in their career journeys.


According to reports from Financial Express, a survey of 700 Indian companies notified that the salary increase in the country continues to be the highest in the APAC region.

India recorded a 10% salary hike followed by Vietnam (8%), Indonesia (7%), China (6%), Hong Kong (4%), and Singapore (4%).

Source: Financial Express

Another survey by AoL noted that salaries in India may increase by 10.3% in 2023. This will be the highest salary hike amongst the major world economies. It appears despite the positive spurt; companies are treading the path with caution given the recession that hit the major economies early in the year.

However, we would urge you to not feel disheartened and to keep giving your best. You can also check our blogs on successful appraisal interviews to work on your presentation skills. Sometimes we tend to miss the right notes to ensure a successful appraisal interview.

All the Best!