Bad appraisals cost the UK economy more than 2 billion, according to a new report.

The Talent Q research found that, although good appraisals can boost productivity levels by 2.7%, and give an 11% boost to quality of service, just 58% of employees received any kind of formal appraisal, and many of these were conducted badly. This results in a loss to the economy of £2.29 billion, says Talent Q.

 “There’s often a huge sigh from managers when appraisal time comes even though it is a well-proven management tool,” says Alan Bourne, director of Talent Q. “The simple message to managers is that if you don’t know how to appraise effectively, consider the business benefits of doing so and get appropriate training.  Doing it badly is a waste of your time and counter-productive within your team.”