How Performance Appraisals can invigorate your business in 2013

Peninsula Team

December 23 2012

ention the word ‘appraisal’ to your employees and they will most likely turn and run away –commonly seen as a chore that has to be endured rather than a useful means of development. However, given the appropriate structure and preparation, they can be a really constructive process for both employer and employee.

Purpose of Appraisals

The purpose of appraisals is to ensure employers use their workforce in the most effective way, and

  • ensure employee understanding and awareness of the individual/business objectives and the barriers preventing their achievement;
  • develop employee knowledge and agreement of what is expected of individuals and how their contribution fits into the organization;
  • review the employee’s performance, giving a formal opportunity to discuss progress and identify improvements and build on strengths;
  • review potential development needs and to predict the employee's future capabilities and how these can be developed;
  • review progression and to assess the employee's eligibility to achieve promotion;
  • develop individuals so that job satisfaction/performance is maximised, leading toimproved service for clients/customers.

Format of Appraisals

Appraisals should be made up of four elements, namely:-

·         Preparation of appraisal              - by employee

·         Appraisal                                         - by appraiser

·         Appraisal interview                        - appraiser and employee

·         Action plans                                    - agreed between appraiser and employee

The overall objective of the scheme is one of being POSITIVE, NOT NEGATIVE. A negative appraisal will have a negative effect whereas a positive or constructive appraisal can have a positive knock-on effect on both the employee and the company. A key note is that the appraisal system should never be used as a means of disciplining an employee and should only be used as a frank assessment of the employee’s performance.

Preparing for an Appraisal

In advance of an appraisal the employer should fully assess the employee’s performance since their last appraisal and adequately prepare for the meeting. In addition, the employee should be given the opportunity to self-evaluate prior to appraisal to allow for some introspection and focused discussion in the meeting itself.

Benefits of Appraisals

Appraisals should not be implemented solely for the benefit of the individual, but also as a means of improving the performance of the whole company.  Benefits of appraisals include:

  • Help improve the employee's future job performance by identifying strengths and weaknesses and how to develop same.
  • Help reveal problems which may be restricting the employee's progress and causing inefficient work practices.
  • Encourage regular dialogue between managers and employees about their work performance which will result in improved communications and clearer direction.
  • Develop a greater degree of consistency by ensuring that immediate supervisors and employees meet formally and regularly to discuss performance and potential.
  • Assist succession planning and determine suitability of employees for promotion where such a structure exists.
  • Move away from us reacting to an event, into preparing for the event.
  • Work to improve job satisfaction and commitment to the company
  • Highlight the employee’s positive work and acknowledge their hard work and dedication.

Top 5 Tips

  • Allow time for both the employer and employee to prepare for the appraisal.
  • Do not use the appraisal meeting as a disciplinary hearing.
  • Combine a system of tick boxes and written sections to grade the employee’s performance so you can compare from year to year.
  • Build in a long term plan of targets and objectives.
  • Follow up decisions that are made during the meeting.

The successful operation of any company depends primarily on using the full potential of its workforce. Although it is not always recognized, employees are the most important asset in a company. Appraisals are the best way of getting the most from employees to ensure that certain criteria. Set clear goals for 2013 and make employees aware of the strategic direction of the company. That way everyone is working towards one goal and training and development can build around it to ensure that the company as whole benefit through increased customer satisfaction and productivity.

If you have any queries on introducing an appraisal system to your workplace then please contact our 24/7 Advice Service on 01 855 50 50 and one of our experienced consultants will be more than happy to assist.

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