Employee appraisals also known as “check-ins” are an essential part of managing human resources in any organization. They provide a formal process for evaluating an employee’s job performance and contributions to the company, and they are used to identify areas for improvement, set goals for future development, and recognize accomplishments. They provide a formal process for evaluating an employee’s job performance and contributions to the company. They are used to identify improvement areas, set future development goals, and recognise accomplishments.
Why are appraisals so important?
1. Performance feedback: Appraisals provide employees with valuable feedback on their job performance, which can help them to understand their strengths and areas for improvement. This feedback can be used to set goals and make plans for professional development.
2. Recognition and motivation: Appraisals can also be used to recognize and reward employees for their accomplishments. This can be a powerful motivator and help increase employee engagement and satisfaction.
3. Align employee goals with company goals: Appraisals help to ensure that employees’ goals and objectives align with the overall goals and objectives of the organisation. This can help to increase productivity and improve overall performance.
4. Identify training needs: Appraisals can help to identify training and development needs, which can be used to create a more skilled and effective workforce.
5. Legal compliance: Employers have a legal obligation to conduct performance reviews, and having a written record of the evaluation can be helpful if there are any legal disputes or issues.
6. Identify underperformance: Appraisals can help to identify employees who may be underperforming, which can be addressed through coaching, mentoring or other forms of support.
7. Succession planning: Appraisals can help to identify high-performing employees who may be ready for leadership or advancement opportunities.
8. Communication: Appraisals provide a regular forum for supervisors and employees to communicate and discuss job performance, goals, and career development.
9. Employee well-being: An appraisal should be a private, respectful, and discreet environment. Employees should be able to express their opinions, concerns, and well-being regarding their employment with the organisation.
What to include in employee appraisals?
Employee appraisals should usually occur in a relaxed atmosphere to create a pleasant basis for discussion. The objectives of the conversation and the timeframe should be clarified.
As a rule, the performance appraisal is the starting point. This involves discussing the specific goals the employee has been working towards and the key performance indicators (KPIs) against which progress will be assessed. These expectations should be clear, measurable and aligned with the company’s overall goals. When employees are new to the company, these are redefined.
Once performance expectations have been set or discussed, the supervisor or manager seeks feedback from other relevant sources, such as colleagues, subordinates and customers. This feedback can take many forms, such as self-evaluations, peer evaluations and 360-degree assessments. This step aims to gather as much information as possible about the employee’s performance and contribution from different perspectives.
After collecting the feedback, the supervisor or manager discusses the assessment results with the employee. This is an opportunity for the employee to receive constructive feedback, ask questions and discuss any areas of concern. The supervisor or manager should be prepared to support their evaluation with specific examples and evidence. During this discussion, the employee and supervisor should also set goals for future development and discuss any training or support needed to achieve those goals.
Appraisal interviews can also be used, depending on the company’s capacity, to allow employees to provide feedback to the company. Problems can be raised, wishes and concerns expressed, and, if necessary, further appointments can be planned to discuss them with other colleagues.
This should be taken into account
It is important to note that employee appraisals should be an ongoing process rather than just an annual event. Regular check-ins and feedback can help to keep employees on track, identify issues early on, and provide opportunities for improvement. It also allows employees to adjust their actions, behaviours, and skills regularly rather than waiting for an annual evaluation. Furthermore, it fosters a culture of open communication and continuous improvement, essential for maintaining a motivated and engaged workforce.
Studies have also shown that a continuous performance management process can better understand employee goals, growth, and development, resulting in a more productive and engaged workforce. For example, a study by Bersin by Deloitte found that organisations with a continuous performance management process saw an average of 8.9% higher sales per employee and a 14.4% lower turnover rate than those without a constant process.
Sometimes keeping it simple is the best approach. Employee appraisals can be simple, with numerous forms and ranking employees based solely on their performance. Instead, focus on creating a strengths-based assessment and coaching environment that emphasises a positive feedback culture and aligns with the company’s overall performance management philosophy. How a company conducts employee appraisals can reveal a lot about its culture and values.
Bottom Line
Employee appraisals are valuable for managing human resources and improving job performance. They provide a structured process for evaluating employee contributions, identifying improvement areas, and setting professional development goals. When conducted effectively, appraisals have the potential to promote employee engagement, inspiration and satisfaction, which will ultimately lead to increased productivity for the company.
