Receiving an evaluation has a significant influence on an employee’s engagement level and views of their immediate manager and organizations, according to a study conducted by the Kenexa Research Institute.

According to KRI, employees who are given a performance appraisal are more engaged and are more satisfied with their job and the company overall. The research indicates that receiving a performance appraisal has a significant, favorable impact on how employees rate their pride in the organization and their willingness to recommend it as a place to work. Employees who receive a performance appraisal are more likely to say they intend to stay relative to those who have not received a performance appraisal and they have more favorable views of their immediate manager, are much more likely to state that their managers display the fundamentals of managerial competence: treating employees fairly and doing a good job at managing the team’s work and the team itself, KRI says.