Employee appraisals

by Mar 7, 2023Talentmanagement Guide

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.

Über den Autor

Nadja Weinzettl

Nadja Weinzettl

Digital Marketing Manager at Skilltree. In addition to marketing-related topics, her interests include skills management and human resources development.

Skills gap analysis

The skills and experience of employees can and often should change over time. Internal training measures, new experience and external training are just a few examples of reasons why the qualifications of employees can change. Therefore, the use of a skill gap analysis...

Basics of competence management

In this chapter, you will learn the basics of competence management. How is competence management defined? Why should competence management be practised? Where can it be applied? And how is it demarcated as part of human resource management? We will address these...

What is competency management?

Whether in recruiting, talent management, or knowledge management - the management of competencies contributes significantly to the company's success and is often seen as an investment in the future. But what exactly is competence management? What are the tasks of...

Competency Management Guide

Competence management is a broad term. It describes different fields of knowledge and disciplines, which are executed by HR managers or other executives on a daily basis. This versatility makes it difficult to get an overview. That's why this guide was created. It is...

Study on skills shortage: Bosses do not know the skills of their employees well enough
Often managers do not even know the employee experiences from previous jobs

Graz/Austria "The bottlenecks on the labour market are increasing," warn trade associations emphatically. A study reveals what the reverse side of the skills shortage and the war of talent looks like. 250 HR managers and executives from a wide variety of industrial...

Practical implementation of competence management

This chapter is about the practical implementation of competence management. Hacks on topics related to skill management and skill matrices will be shown. Furthermore, various skill management systems are explained and topics on further education and training are...

Key positions

In every company, there are so-called key positions essential for the company's successful functioning. These positions describe strategically relevant personnel positions for companies. One of these key positions is the single point of knowledge.Table of content:...

Tips for implementation

In this chapter, you'll learn practical tips for implementing competency management. We will address these questions in the next three articles. In this chapter, you will find helpful tips which should be considered in competence management or skill management. In...

Continuing education and training planning

Learning is like rowing against the current. As soon as you stop, you drift back. This also applies to knowledge in organizations. Knowledge or working methods are constantly changing. In order to remain competitive as a company, it is necessary to constantly develop...

Succession planning

When employees leave the company, be it because of a change of profession or retirement, a replacement is usually necessary. The result is costly and time-consuming recruiting. If it is a key company position, it can also result in work processes being interrupted and...
success icon

Your download has started!

Why have an Excel matrix when you can have a whole tree?
Try Skilltree for free and start growing your skills.

14 days free | No credit card required

success icon

Dein Download ist gestarted!

Warum eine Excel Matrix wenn man gleich einen ganzen Baum haben kann?
Probiere Skilltree
gratis aus und wachse mit all deinen Fähigkeiten.

14 Tage kostenlos | Keine Kreditkarte erforderlich