Performance appraisals often referred to as career growth discussion, or performance evaluation forms a crucial aspect of business performance management in any organisation.
It is estimated that companies that engage in performance appraisals have low turnover costs and maximum business growth. Employees are evaluated in areas such as communication, quality of work and interpersonal skills. The way performance appraisals work and how they are evolving is discussed in detail.
What is a performance appraisal?
Performance appraisal is an essential and important component of performance management. It is a regular review of employees’ work performance, growth and productivity and how it aligns with the business objectives and goals.
The goal of appraisals is to help the employee improve their performance in their job role and career, by identifying areas where they need to improve and rewarding them where they’re doing well. Identify specific areas for improvement and development. It also allows employees to discuss their career path and aspirations moving forward.
It can be referred to as performance review, performance evaluation, employee development plan or employee appraisal to name a few but they encompass the same thing which is evaluating performance.
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Effective performance appraisals?
Employee appraisal can be one of the more dreaded parts of your job, but it shouldn’t be! It’s an opportunity to learn about your employee and their performance, and take actions to help them be more successful in the future.
For a performance appraisal to be effective, it must include a self-assessment from the employee and manager’s evaluation. It’s important to think about how you want to appraise your employee, and how they want to be appraised by you.
A good idea is to start with what they’re doing well and let them defend their own personal growth needs. No one wants to sit through hour-long negativity where they are asked why they aren’t working harder, meeting deadlines or communicating effectively with others on their team.
What should an employee appraisal include?
A well-designed employee appraisal is a key to getting your business on track. An employee’s appraisal can make or break their morale, and even impact profits. How do you design a great one?
Employee appraisal normally done annually?: Annual appraisals typically cover job performance over the past year, but it may be beneficial to hold them more frequently (quarterly, bi-monthly or even monthly) in order to give employees immediate continuous real-time feedback and help identify problem areas sooner rather than later.
Communication is core to the whole process. Question and answers. It must be a two-way conversation. Encourage the person to prepare for employee appraisal to get more out of the process.
Managers that are reluctant in giving feedback or give minimal feedback can derail employees’ morale.
Modern performance appraisals, as opposed to older methods, are designed to aim at enhancing performance. Furthermore, technology is being incorporated in a lot of aspects of HR, such as recording interactions, making webinars and other resources that facilitate interactions.
How do you appraise an employee?
You may be wondering how to conduct an employee performance appraisal. An easy way to begin is by developing questions and talking points that allow you to get to know your team member better.
Performance Appraisals Checklist
Start by asking good questions like:
- How do you feel about our work environment?
- What can we improve as a team?
- Are there ways I could support you more in achieving your goals at work?
- In addition, try bringing up feedback from other coworkers or managers that highlight the positive qualities of your employees.
Actively listen and take in what is being explained to you clarifying and responding in an encouraging way, Make sure they are aware that you are documenting what they are saying.
Focus on nonverbal cues, look at facial expressions, eye contact, voice. posture, breath and attention span. Observe body language, put them at ease.
Focus on evidence-based information and examples. Continually reinforce positives and overall strengths within the role.
Identify strengths and success in the recent months and focus on how you can replicate that success going forward. How they contributed to the success story and how they could replicate this. Their own personal ‘success plan’. Let them define their own personal growth needs and skills.
Learning and developing new skills. Where do they want to be in the next few years? How do they see their role changing and how?
Do there require additional training in the future?
Decisions on things such as pay increases, bonuses, promotions or redundancy.
Business Performance Management
Business performance management and evaluations are one of the most significant variables of any business and a perfect way to document productivity. Every business should have goals, and every worker has to be involved in the process of achieving them.
Performance assessment can boost efficiency and employee morale as well.
Appraisals are a constructive way for a manager to know how well employees are performing the tasks assigned to them. In the performance evaluation process, a regular conversation with employees should be mandatory for them to understand their job and identify the necessary resources to perform their duties effectively.
Performance Management Benefits
Performance appraisals work when conducted frequently to assess an employee’s abilities. According to Sharma, 86% per cent of HR managers state that performance appraisal plays a huge role in improving employees’ productivity.
A good performance review facilitates continual conversation between managers and team members. Based on an assessment, the manager provides the worker with insightful, actionable feedback.
Feedback is vital because it guides the focus of employees towards development and learning. Also, it offers inspiration by helping them see their progress towards objectives.
A performance appraisal is also an incentive for the business on the basis of feedback. In turn, this provides the employee with the input required to better their job, so regular feedback must be provided.