With all of the anxiety that employees are feeling during this economic downturn, providing a level of stability is a critical action for organizations. Performance management is such an anchor, because it keeps employees focused on work, shows them that the company is still interested in their success and helps unify the company.

In a global survey conducted by the Kenexa Research Institute, respondents said that receiving a performance appraisal had a significant positive impact on employee engagement, as well as on the perception of a worker's immediate manager and the organization as a whole.

As with one of my clients, some organizations opt to put performance reviews on hold because they don't want employees to expect raises. While employees are smart enough to understand the rationale behind not getting raises, they, nevertheless, will be disappointed and disenfranchised when they are not given feedback on their performance and standing in the company.