Conducting Effective Appraisals: A Holistic Approach to Employee Performance Management
Conducting Effective Appraisals: A Holistic Approach to Employee Performance Management
In the realm of employee management, the term appraisal is often met with reluctance by employees. It can evoke feelings of anxiety and defensiveness, even when the process is designed to be constructive. That’s why it’s essential to rethink the terminology and approach. Leaders should give some thought to re-thinking the name they give to the process, potentially using some Tamar HR past favourites such as; ‘job chats’, ‘performance updates’, or ‘pit stop reviews’. Overall, the process is essential for nurturing talent and aligning individual and organisational goals. When done effectively, these conversations serve as a tool for engagement, development, and retention, which are critical stages in the employee life cycle. This cycle begins with attracting and recruiting the right talent, continues through onboarding, development, and retention efforts, and finally concludes when an employee exits the organisation, ideally as an advocate. Regular appraisals ensure that employees remain engaged and aligned throughout this journey, creating a more motivated, committed workforce.
Why Appraisals Matter
Appraisals are more than just an annual tick box exercise; they are vital for ensuring employees feel supported, recognised, and aligned with the company’s objectives. When handled correctly, they can strengthen the psychological contract between employer and employee, increasing discretionary effort—where employees go beyond what’s expected for the business. However, poor appraisals often result in disengagement and even resignation, with many employees leaving businesses due to ineffective management rather than dissatisfaction with the organisation itself.
A Holistic Approach to Appraisals
At Tamar HR, we believe in a holistic approach to performance management, one that incorporates regular catch-ups throughout the year. This approach ensures that appraisals aren’t seen as just a process to complete, but rather part of a living process where feedback and support are continuously provided. For some employees, this may mean monthly or bi-monthly meetings, while others may prefer quarterly check-ins. The key is to AGREE on a schedule that works for both parties, ensuring employees feel supported without being micromanaged.
Another way to make appraisals more effective is to take the conversation off-site. Hosting the meeting in a café (with cake of course!) or other informal setting can create a relaxed environment, exciting the employee and giving them a refreshing change of scenery. This simple method can improve the quality of your meetings drastically.
Ultimately, a holistic approach means “living and breathing” the process – it should not come as a surprise to employees when they are invited to an appraisal and the same applies to probation reviews. The ongoing execution of feedback throughout the year ensures that these meetings are part of the fabric that keeps the organisation together and united. Simply put, ‘ it’s just part of what we do’ and building this culture helps to improve open two-way communication.
Preparing for a Successful Appraisal
Preparation is key to conducting a successful appraisal. Managers should come equipped with a clear understanding of the employee’s performance, challenges, and achievements. Employees should also be well-informed of what to expect. It’s essential to communicate that appraisals are a two-way process designed to offer support and development rather than criticism. Ensure that you provide a well written invitation that includes prompts for the employee to consider discussing during your conversation.
During the appraisal, aim to use the 80/20 rule – allowing the employee to do 80% of the talking. This ensures the employee feels heard and valued, making the meeting more collaborative and productive. While it may take time to reach this ratio, especially during initial appraisals, the goal is to create a space where the employee feels comfortable leading the conversation.
Goal Setting and Continuous Feedback
Setting SMART (specific, measurable, achievable, relevant, and time-bound) goals is a crucial part of any appraisal. These goals should align with both the employee’s career ambitions and the company’s broader objectives. Regular feedback throughout the year allows for course corrections and helps ensure that the goals remain realistic and achievable.
Rather than relying solely on annual reviews, managers should integrate informal catch-ups to provide ongoing feedback as part of the holistic approach. This prevents any surprises during formal appraisals which could be highly detrimental to the quality of your conversation during the meeting. It’s also important to remember that some employees may be content performing their job description to standard and may not be seeking additional responsibilities or development. These employees should not be penalised for fulfilling their roles without pursuing further growth.
Differentiating Between PIP and PDP
If the need arises to set some goals and objectives, then it’s important to distinguish between a ‘Performance Improvement Plan (PIP)’ and a ‘Personal Development Plan (PDP)’. Whilst these processes again may carry alternative names, essentially a PIP process is for employees who are underperforming according to the standards set in their job description and need guidance to meet expectations. In contrast, a PDP processes is for employees who are performing well and are either seeking additional responsibilities or wish to develop new skills as part of their continued development.
Both plans require clear, specific objectives (in-line with SMART), defined support and regular follow-ups to ensure progress. Managers should approach these discussions with sensitivity and support, offering constructive feedback while focusing on solutions rather than problems.
Addressing Challenges and Difficult Conversations
Appraisals sometimes require managers to address underperformance or behavioural issues. These conversations can be difficult, but they are essential for both the employee’s development and the organisation’s success. Leaders should not avoid these conversations, however it is good practice to take some time to reflect and plan in what it is you need to say. Fortunately, appraisal processes allow for this and Tamar HR has many template processes for you to discuss and adapt to suit your business needs.
Overall, it’s important to approach these discussions with empathy, focusing objectively on their skills and behaviours rather than personal traits. By providing specific examples and working together to develop solutions, managers can help employees overcome obstacles and improve their performance.
Objectivity, Bias, and Fairness
Ensuring objectivity during appraisals is crucial to maintaining fairness. Unconscious biases, if left unchecked, can negatively affect the appraisal process. Managers should rely on objective performance metrics and documented evidence when assessing employees. Regular training for managers can ensure they stay aware of their own potential blind spots, ensuring a fair and equitable process for all employees. Periods of reflection can be helpful in this process, and a valuable tool to consider is the Johari Feedback Window. This model promotes increasing self-awareness by revealing the areas that are hidden to one’s self (the most difficult area to approach) and that are hidden from others, ultimately reducing the “unknown” area and improving overall performance.
The Importance of Documentation
Accurate documentation is critical for ensuring transparency, legal compliance, and continuity in the appraisal process. Both managers and employees should sign off on the final report, which should include a summary of the discussion, agreed-upon goals, and any next steps. This provides a clear record of the employee’s progress and helps maintain accountability on both sides.
Conclusion
Appraisals – whether you call them job chats, pit stop reviews, or performance updates – are integral to effective people management. When approached holistically, with regular feedback and tailored support, appraisals can significantly enhance employee engagement, development, and retention. They help strengthen the psychological contract, boost discretionary effort, and contribute to long-term business success.
Investing time in training managers to conduct effective appraisals will lead to a more motivated, engaged workforce, ultimately reducing turnover and fostering a culture of continuous development. By offering a living, breathing approach to performance management, managers can ensure that appraisals become a valuable resource for both employees and the business as a whole.
We recommend designing your appraisal system with your Tamar HR contact and delivering this to your direct reports with their assistance. This will help you understand areas that need improvement and will ensure your line managers are also trained in the process to deliver the same system to their directs.