An employee performance appraisal is commonplace in every workplace. This is because they are vital for both the employee and the employer in terms of career and business progression. To get the most out of conducting an employee performance appraisal, here are the basics to follow.
The Basics of Conducting Employee Performance Appraisal
First of all, let’s explore what appraisals are and why they have been designed for all workplaces.
What Are Employee Performance Appraisals?
An employee performance appraisal, also known as a performance review, is where a manager or supervisor evaluates an employee’s performance in regard to business objectives, company targets and personal goals.
By comparing the employee’s work to a standard baseline, managers are able to better understand the alignment with company expectations and standards. This, in turn, provides an opportunity to highlight strengths and areas for improvement which could include identifying training courses or even possible promotions (or ways to achieve this).
Reviews also give both supervisors and employees the chance to give and receive feedback in an open discussion. This results in gaining more insight into each other, the business and themselves as individuals. For managers, this entire practise justifies personnel changes, rewards outstanding employees, and improves management skills.
How Often Are Employee Performance Appraisals Meant to Occur?
There is no one answer to this as every employer and company is different. However, a general rule of thumb is that employee performance appraisals should occur every month, every quarter, every six months or every year.
Sometimes, instead of comprehensive appraisals, an informal review can take place in between them to help employees proactively and act as preparation for the more formal review.
What Are the Different Types of Employee Performance Appraisals?
Just like there are different times performance reviews can take place, there are also different types of reviews that suit different types of companies, work environments, and individuals. They are:
Traditional Performance Appraisals
A traditional employee performance appraisal involves a manager and employee meeting at a set time after a certain time period to discuss the employee’s performance together. There may be specific factors already in place, such as a preset rating system and/or benchmarks from the previous appraisal. The discussion usually involves developing a plan for improvements to be made before the next review.
Self-Appraisals
Slightly different to the traditional appraisal; instead of the manager reviewing the performance of the employee, it is the employee that is reviewing the employee’s performance. In doing so, the manager gains clearer insight into how the employee views their own progress, job role, and goals. Still acting as a discussion, areas of improvement will still be identified and any changes that need to be made.
360 Appraisals
As well as seeking feedback from managers and themselves, 360 appraisals see employees looking to other sources such as coworkers and customers for feedback. Whether this be anonymous or named, this can provide the employee with a comprehensive review to work from in the future.
Group Performance Appraisals
Instead of reviewing an individual employee’s performance, a group performance appraisal sees managers reviewing a team’s performance together. This is an effective option for those workplaces that mostly rely on collaboration or group productivity as it helps them identify how to work together better. This could occur regularly as recommended for traditional appraisals or it could occur after a project is complete.
Employee-Initiated Appraisals
Rather than the manager organising the performance review, an employee-initiated appraisal is where the employee will request one when it is deemed necessary. This enables the employee to take responsibility for professional development and encourages more honest communication within the team.
Upward Appraisals
It is normal practice for managers to have performance appraisals too; upward appraisals refer to employees reviewing supervisors. Not only does this provide an understanding of professional progress, but it can improve working relationships, lead to better communications, and enhance leadership skills.
How to Conduct a Traditional Employee Performance Appraisal
Although there are these different types of appraisals, here are the basics of conducting a traditional employee performance appraisal.
Preparation for Both Employers & Employees
It is a manager’s duty to make sure that both parties are prepared for the appraisal.
Managers should review any notes made in the previous appraisal regarding goals and improvements and make notes about current observations to be ready for the review. Document whether previous targets have been met, a general summary of the employee’s current status, and any stand-out actions that have been taken. Pass these notes onto the employee before the meeting or at the start of the meeting, so the employee remains engaged during the review and notes can be taken away afterwards.
For employees, create an agenda which includes what the meeting will cover and offer the option to add any additional points to be discussed. This way, there is visibility for both parties to know what topics will be covered such as a pay review or promotion opportunities.
Make Sure the Discussion is in Person
As well as covering the points prepared for the meeting, remember that this is a discussion and it is an opportunity for both managers and employees to ask questions. Whether that be asking how performance is perceived, if there are any concerns or obstacles in the way, and how to support employees to reach set goals.
By making sure the discussion is in person and face-to-face, it can encourage an open and honest conversation as employees feel listened to. Managers can use this to improve the workplace culture, systems and processes that are in place with the involvement of the employee. In addition to discussing improvements, remember to celebrate successes too.
Focus on the Future & New Goals
After the main discussion, it’s important to end the appraisal on a positive note and this is where the focus moves to the future and new goals. These goals should be realistic, set within a timeframe, have tools and support provided, and have the company’s objectives in mind.
An action plan should be drawn up by the end of the appraisal which details achievable goals with deadlines. It’s recommended that the next performance appraisal is booked in during this time too, so employees become familiar with regular feedback.
Why is an Employee Performance Appraisal Important?
Performance reviews are instrumental in employee retention. They help employees feel recognised and give them the opportunity to continue to develop and grow which ultimately keeps them engaged. Also, they improve the communication between employees and supervisors which enhances the working relationship.
For managers, appraisals give clearer insight into the employee’s work performance. They help make informed decisions moving forward regarding employee training, compensation and promotion opportunities. Overall, they benefit both parties so it’s important to make sure they are scheduled in regularly and executed in the most effective way.
Who is Responsible for Performance Appraisals?
The responsibility depends on the organisation’s structure and policies. Sometimes, only an employee’s direct supervisor or manager is required and other times, multiple individuals like HR and other colleagues are required.
If you need assistance with appraisals, Premier Legal offer a dedicated HR service that can help. as experts in employment law, we are here to support your employees with an ongoing retainer package or on an ad hoc basis. This flexibility means we can tailor our services to suit your requirements, so get in touch with us today to see how we can help you.
