How are formal performance appraisals related to employee retention?

Question

Quizplus · Accepted Answer

Formal performance appraisals can affect employee retention by influencing their perception of fairness and effectiveness within the organization. Employees who believe that their appraisal is conducted fairly and effectively are more likely to feel committed to the organization, and thus, more likely to stay. This demonstrates the importance of conducting meaningful and objective performance appraisals as a part of an overall retention strategy.

How Are Formal Performance Appraisals Related to Employee Retention