There are business appraisals that can be carried out both internally and externally. Some rely more on external appraisals as they feel that the outcome is a much more reliable one. Here are some of the main disadvantages of having an internal business appraisal.
It is not fraud free
Internal audits that are carried out within the organization are not ‘fool proof’. Unlike in the case of hiring an company formation Hong Kong who can handle this for you. This means that there can be fraudulent activities happening in the business even after the appraisal has happened. There is no proof to say that there will definitely be fraudulent activities in your business if you continue to have internal appraisals done but you do always run the risk. Therefore, wherever possible try to get it done externally so that you know that there are no biased opinions or internal politics at work as well.
They will not care much about the outcome
In the case of an internal appraisal there is always the chance that they would simply be doing I for the money and for the fact that t=it is their job to do so. This means that they have little to no liability or responsibility when it comes to what it means for the business. For example if they do not stress enough on the pro tax services that you need, there could be a serious problem in the future. You will need somebody with a sense of passion in their work and ownership to carry out the appraisal or you.
They are only for company use
The reports that are generated after an internal appraisal cannot be and will not be accepted by stakeholders and therefore, the company will need to carry out an external appraisal even though an internal one has already been carried out. This means that as a business, you will be accruing more bills and adding on more expenses and you will also be allocating a lot more time for the appraisal process.
Your staff might feel harassed
There will be a lot of new changes following appraisals and the staff that you have working for you might feel a bit harassed o inconvenienced by the fact that they are unable to express their own opinions in terms of the new changes. Even if the business does want to listen to what the employee has to say, chances are that after an appraisal they cannot really delve into it and will have to carry out the changes anyway.