Effective Performance Appraisals
Many organisations have regular Performance Appraisals without a clear understanding of why they bother or what they hope to get out of them. Other organisations simply don't bother.
The information on this page is intended as a general guidance for UK employers, and may not be appropriate for all situations. You should always consider seeking professional advice before acting.
Please also see the footnote at the bottom of this page.
Introduction
The annual performance appraisal strikes a note of terror into managers and employees alike. Most managers hate doing them, and few employees see any benefit.
However, effective performance appraisals can have a number of benefits for employers. They can be used to praise an employee's progress and plan their training and development needs (with a better understanding of their career aspirations). Appraisals can also be used to identify and communicate areas where the employee needs to improve, address behaviour and conduct issues and set performance targets.
Useful links
Regular informal reviews
The basis of good management is good communication. A good manager will regularly discuss progress with their employees. If a problem arises, it should be dealt with promptly (not left for an annual performance appraisal).
Often, such progress reviews will happen naturally through the course of normal day to day management. Creating a slightly more formal structure to these management reviews can make the annual performance appraisal a lot easier.
However, it can be helpful to create a slightly more structured approach. By keeping a brief record of regular supervision meetings, the annual performance appraisal is more objective and easier to prepare for. Adequate records are particularly important when considering employee pay and benefits.
Remember that addressing poor performance should be done promptly. Issues that are not addressed can quickly escalate out of proportion.
Regular supervision meetings can also be a good opportunity to reassess the goals and objectives for an employee, particularly if they are struggling to meet them.
Useful links
Formal annual appraisals
Fundamentally, annual performance appraisals should be an opportunity to focus an employee on the year ahead and to set their expectations. This can be achieved by considering the objectives an employee should be trying to meet and by developing with them a training and development plan.
Reviewing past performance is an important aspect of deciding what should be achieved in the future. Managers should consider the employee's job description, how well objectives have been met and issues of conduct and behaviour.
A well designed appraisal system will start by collecting a range of information - their job description, how long they have been in their current role etc. The manager should consider this information together with notes from interim meetings and discussions since their last appraisal. (An appraisal should be based on more than simple intuition.)
Asking the employee to assess their own performance against specific targets and objectives can give significant insight and provide a useful basis for discussion. The employee's manager should also consider their own assessment of the employee (before reviewing the employee's opinions).
The manager can then structure the appraisal meeting as a discussion between how the manager believes the employee has performed, contrasted with the employee's own opinions. This approach is likely to be more objective, and can help identify issues one party had not considered. It also helps an employee understand their manager's basis for decisions.
It is important to document the discussions during the appraisal meeting, with comments and conclusions from the manager and the employee recorded.
Consideration should be given to future objectives for the employee, required performance standards, and any agreed changes to their job description. It can also be helpful to record an employee's career aspirations.
Useful links
Get Started
- Performance Appraisal Policy
- Training and Development Policy
- Performance and Training
- Online Performance Appraisals
Footnote
If you require further explanation, guidance or advice specific to your organisation, please contact us. We have a range of performance appraisal letters and forms that may be helpful. We can also provide consultancy if you need more personal assistance.
The information on this website is primarily aimed at UK based organisations, though may be more generally applicable. The information is believed to be correct at time of writing but may be subject to change as legislation is updated and precedents set. THIS INFORMATION MAY NOT NECESSARILY BE APPROPRIATE FOR YOUR ORGANISATION. If in doubt, please contact us or your legal advisers.
All information is copyright, and provided subject to our website terms and conditions.