A peer appraisal is an employee performance assessment which is conducted by colleagues that have observed the individual’s job performance and are able to provide constructive feedback.

The appraisal involves peers ranking their colleagues from the best to the worst; either on worst or overall performance, which includes employees rating on performance metrics. The main advantages of conducting a peer appraisal are:

• It encourages an inclusive workforce; this is because each employee is offered the opportunity to rate the performance of their colleague, which then makes the employee feel they are trusted in the organization.
• It provides knowledge; employees are able to develop new skills as they review the performance of their colleagues.
• It encourages the development of a shared goal within the organization.