Time to introduce right Appraisal process

The best time to introduce an appraisal system is obviously now, but to be successful other groundwork must be completed first.

Performance appraisals are an annual process that involves evaluating employee’s performance and productivity against the pre-determined set of objectives or goals for that year. It also helps to evaluate employee’s skills, strength and shortcomings. The results of this performance appraisal process determines the employees wage raise and promotion.

The objectives of performance appraisal varies from company to company and depending on the industry/company size, the appraisal method varies.

Steps to an effective performance management process:

1. First Setup the Appraisal Cycle and also define roles & responsibilities for each team or employee
2. As per the pre- defined performance cycle reviews are launched for eligible employees.
3. At the start of Cycle, Employees and managers meet to select and set SMART goals from the goal library.
4. During the performance review period, mid year reviews are conducted where employees and managers often meet to discuss progress and take accurate notes.
5. Once the performance cycle ends, employees receives a task to complete their self-evaluation.
6. After employee self-evaluation, the review task is forwarded to managers where they are prompted to submit their evaluation.
7. At this point, both the manager and employee meet to discuss and approve or send back to employee requesting changes.
8. If the review is approved, the manager awards an overall rating to the employee.
9. The rating awarded by the manager is forwarded to the employee for acknowledgment.
10. Once the rating is accepted by the employee, it is submitted to the HR team and finance team for position and benefits update.

There are three main reasons for having an appraisal system:

1. To monitor the overall progress of the business : Employee appraisal process provides a framework for measuring the performance of the business through assessing individual employee against
jointly agreed targets that fit into the company’s overall aspirations. A good appraisal system should be like having an “internal barometer” measuring the state of the company.

2. To develop the business to meet changing circumstances : It is widely acknowledged that a static organisation will not survive and that
a healthy organisation is one that can adapt to market forces. This will often involve introducing new methods of working, developing new products and even changing the direction of the business. In reality this can only be achieved by ensuring that employee are similarly able to adapt,
perhaps even being retrained in new skills. Therefore, appraisal should not be a static process either. It should be developed to respond to
new circumstances such as revised business aims and to encourage the organisation to change to meet new requirements.

3. To encourage and motivate employees : Employees are usually the largest and most expensive asset and their motivation and success will result in a successful performance for the business. Regular meetings and informal chats praising, or indeed chiding individuals, are all part of a good management technique, but they are no substitute for being able to set reasonable targets that can then be measured. A job that is either well-done
or botched should not be allowed to go unnoticed. The former may not be repeated, while the latter may become the norm.
A longer-term method of measurement and will provide a better and more consistent picture of employee abilities.

The value of performance appraisal to the organisation is fairly obvious, but what are the benefits for individual employees?

1. Employees are recognized for the value and worth they bring to the organisation.
2. They are able to contribute to the development of the business through participation.
3. They are allowed, and in fact encouraged, to develop their own personal skills.

Why Staff Hate the Performance Review

Most employees in companies today are all too familiar with the concept of the performance review. Just the mention of this often dreaded occurrence of discussion with one’s supervisor where they get to critique every move you’ve made during the year while you sit ideally by is sure to send negative feelings throughout the mind’s of employees everywhere. The performance review generally has a similar effect on managers and supervisors as well. So why is this performance review so dreaded and loathed by many? A few of the reasons are listed below.

Employees — Why They Hate the Performance Review Process

They have no control in the situation. Managers get to provide ratings and comments on multiple areas of performance that are most often subjective in nature. If an employee disagrees, they might get a small “employee comments” area to provide their rebuttal all the while knowing that if they push too much the person controlling their future still has control.

Reviews sheets are completed before the actual discussion occurs. Therefore bringing up comments has little effect on the actual rating which is most often tied to their annual increase which is usually only a few cents different from the person with the next highest or lowest rating.

Employees are often forced to write a self evaluation prior to the meeting as well. Unfortunately, these usually only serve as annoyance to employees because the majority of the time it is ignored by the supervisor any way.

Managers — Why They Hate the Performance Review Process

Managers often dread the discussion of the employee performance review assuming the discussion will turn into a battle with the manager left to convince the employee that their ratings are accurate. Managers usually assume employees think they perform better than they actually do.

Managers are busy with tasks and goals of their own . Taking the time to thoroughly review a whole year’s worth of performance is time consuming. They often rush through the forms because the HR department has a deadline they are struggling to meet?

The forms are too complicated, long, short or don’t cover what is really important to success in this department.

So, What’s the Answer to Overcoming Negativity Around the Performance Appraisal?

Here’s a few tips to get you started:

1. Set clear expectations. Provide them on the first day of employment.
2. Provide feedback all year. Create a culture where performance discussions are a regular part of the work day and review meetings are held at frequent intervals such as monthly.
3. Ask first, tell later. Begin a performance discussion by asking the employee to rate their performance.Have them provide examples of where they have met and exceeded the expectations.
4. Do not complete the form until you have the discussions. Do monitor performance all year and have examples ready to discuss.
5. Guarantee no surprises at the annual meeting. If you are waiting for annual meeting to discuss performance, you lost your chance to be effective.

Many employees get confused with appraisal and variable pay.

Appraisal is generally a process to evaluate how a person has performed during the year. This generally leads to determining the hike for the person. Usually when an appraisal is positive, and you have done well , or exceeded your targets, the organization bestows a variable pay on you. In other words it is an appraisal based payment varying as per levels of goal achievement.

Variable pay is a part of your salary structure which will be paid to you either quarterly, half-yearly or annually. As the name itself suggests it can vary from time to time based on various factors like performance of employee, performance of organisation etc.

A good, streamlined employee appraisal process undeniably boosts your company’s productivity. With the right performance appraisal strategies, you can combat high employee turnover rates, low engagement, absenteeism, and even low ROIs.