Four considerations to shake up your employee appraisal process

Four considerations to shake up your employee appraisal process
07 Aug 2018

The traditional employee appraisal process is no longer fit for purpose - or this is certainly true of the annual face-to-face meeting where managers asked ‘what do you think has gone well this year and what hasn’t?’ anyway.

As a result, many companies are now looking for a more engaging and responsive approach that is tailored to their sector, business and even, ideally, the individual members that make up their teams. Because performance appraisal systems should be about more than simply grading employees or separating them into groups of ‘performers’ and ‘non-performers’.

Properly run, a good appraisal system can help to inform staff development activities, serve as a basis for hiring and training new employees and provide useful insights during a restructure.

Such insights are particularly important when looked at in the light of US recruitment giant Manpower’s 2018 Talent Shortage study. It revealed that global skills gaps continue to be a major issue and there is no clear end in sight. 

Some 45% of employers around the world are currently facing difficulties in filling positions, up from 40% in 2017. As a result, a huge 54% are now focusing on developing and nurturing their internal talent to try and ensure things do not get any worse.

Again, an effective appraisal process can be useful here in not only gauging how committed your employees are, but also in helping you understand their training requirements in order to both fulfil their personal ambitions and ensure company goals are hit. Here are four key points to consider to help you get things right. 

1. Ask questions: During an appraisal process, take the opportunity to ask your employees questions. While it may sound obvious, all too many managers simply fail to do so. A recent staff survey revealed, for example, that 47% of those polled said their employer had never asked them how their working experience could be improved. But by asking this simple question, you can demonstrate your interest in their input and show that you are keen for them to play an active role within the organisation. 

Other possible questions include:

  • How do you feel about your role?
  • Would you be interested in expanding your skills and responsibilities?
  • What could we do differently?

Above everything else though, use the appraisal process to focus on your employee and their requirements. Look at their current capabilities and responsibilities, find out what are they interested in and establish if they would consider doing more. 

2. Provide effective feedback: An appraisal is the perfect mechanism to provide feedback on areas that an individual employee needs to work on. Start the conversation by discussing their achievements to date, gather their feedback and then move on to areas where they could improve. Not only will your message be received more positively if you start on a constructive note, you are also more likely to obtain fruitful insights into how best to further develop them.

This approach will also show the individual concerned that you are committed to their long-term growth. By the way, always remember to thank each employee for a job well done – it may be a small gesture but it can make a huge difference to them and how they feel about their work. 

3. Encourage ownership: Your employees should be encouraged to “own” their part in the appraisal process as it is just as important for their own professional development as it is for the company’s continued success. For example, if you give them a pre-appraisal task to assess their own activities, which involves spelling out the achievements they are most proud of and how they supported business goals, it makes it clear that their input is valued. At the same time, the process will feel more inclusive.

But employees should be also encouraged to work towards their own professional growth and development on a continual basis. For instance, mobile and other digital technologies make it possible to offer constant access to performance information, schedules, incentives and bite-sized training activities.

4. Offer regular input: By scheduling regular check-ins, in which you provide your employees with feedback and they give you with theirs, you are showing your willingness to keep the conversation open and ongoing.

Appraisals are a two-way street and the focus should never only be about what is best for the business. The wellbeing of your employees is integral to the organisation’s continued success so using a review process as a positive means of opening lines of communication to understand their needs and vice versa can only ever be a good thing.

 Paul Burrin

Paul Burrin, a work trends expert, is also vice president at Sage People, which provides cloud-based HR software to help global organisations acquire, retain, manage and engage their workforce.

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The traditional employee appraisal process is no longer fit for purpose - or this is certainly true of the annual face-to-face meeting where managers asked ‘what do you think has gone well this year and what hasn’t?’ anyway.

As a result, many companies are now looking for a more engaging and responsive approach that is tailored to their sector, business and even, ideally, the individual members that make up their teams. Because performance appraisal systems should be about more than simply grading employees or separating them into groups of ‘performers’ and ‘non-performers’.

Properly run, a good appraisal system can help to inform staff development activities, serve as a basis for hiring and training new employees and provide useful insights during a restructure.

Such insights are particularly important when looked at in the light of US recruitment giant Manpower’s 2018 Talent Shortage study. It revealed that global skills gaps continue to be a major issue and there is no clear end in sight. 

Some 45% of employers around the world are currently facing difficulties in filling positions, up from 40% in 2017. As a result, a huge 54% are now focusing on developing and nurturing their internal talent to try and ensure things do not get any worse.

Again, an effective appraisal process can be useful here in not only gauging how committed your employees are, but also in helping you understand their training requirements in order to both fulfil their personal ambitions and ensure company goals are hit. Here are four key points to consider to help you get things right. 

1. Ask questions: During an appraisal process, take the opportunity to ask your employees questions. While it may sound obvious, all too many managers simply fail to do so. A recent staff survey revealed, for example, that 47% of those polled said their employer had never asked them how their working experience could be improved. But by asking this simple question, you can demonstrate your interest in their input and show that you are keen for them to play an active role within the organisation. 

Other possible questions include:

  • How do you feel about your role?
  • Would you be interested in expanding your skills and responsibilities?
  • What could we do differently?

Above everything else though, use the appraisal process to focus on your employee and their requirements. Look at their current capabilities and responsibilities, find out what are they interested in and establish if they would consider doing more. 

2. Provide effective feedback: An appraisal is the perfect mechanism to provide feedback on areas that an individual employee needs to work on. Start the conversation by discussing their achievements to date, gather their feedback and then move on to areas where they could improve. Not only will your message be received more positively if you start on a constructive note, you are also more likely to obtain fruitful insights into how best to further develop them.

This approach will also show the individual concerned that you are committed to their long-term growth. By the way, always remember to thank each employee for a job well done – it may be a small gesture but it can make a huge difference to them and how they feel about their work. 

3. Encourage ownership: Your employees should be encouraged to “own” their part in the appraisal process as it is just as important for their own professional development as it is for the company’s continued success. For example, if you give them a pre-appraisal task to assess their own activities, which involves spelling out the achievements they are most proud of and how they supported business goals, it makes it clear that their input is valued. At the same time, the process will feel more inclusive.

But employees should be also encouraged to work towards their own professional growth and development on a continual basis. For instance, mobile and other digital technologies make it possible to offer constant access to performance information, schedules, incentives and bite-sized training activities.

4. Offer regular input: By scheduling regular check-ins, in which you provide your employees with feedback and they give you with theirs, you are showing your willingness to keep the conversation open and ongoing.

Appraisals are a two-way street and the focus should never only be about what is best for the business. The wellbeing of your employees is integral to the organisation’s continued success so using a review process as a positive means of opening lines of communication to understand their needs and vice versa can only ever be a good thing.

 Paul Burrin

Paul Burrin, a work trends expert, is also vice president at Sage People, which provides cloud-based HR software to help global organisations acquire, retain, manage and engage their workforce.

OTHER ARTICLES THAT MAY INTEREST YOU

Trends 2018: What's new in pay and rewards?

Four ways to get the most out of your benefits and rewards strategy

Get personnel