Performance appraisals are a critical element of the performance management process, although it is important to remember that they are only ONE part of the entire process. For many businesses, the performance appraisal process is combined with annual compensation reviews and constitute the entire program of performance management for the entire organization.
This is of course not considered best practice, and in this article we explore this topic in more depth.
Firstly, for the uninitiated, what is a performance appraisal?
Performance appraisals are a systematic processes of measuring an individual's work performance against the established requirements of the job. They are used to provide feedback to employees, set goals, identify training and development needs, make compensation decisions, and improve employee engagement.
Appraisals can be conducted on a variety of timescales, from annual to quarterly. The specific methods used to conduct performance appraisals vary from organization to organization, but they typically involve a combination of the following elements:
Self-assessment: Employees are asked to reflect on their own performance and identify their strengths and weaknesses.
Managerial assessment: Managers provide feedback on the employee's performance based on their observations and interactions with the employee. Usually the manager would have completed a performance management certification course to learn about structured appraisal feedback
360-degree feedback: Feedback is collected from a variety of sources, such as peers, subordinates, and customers. You can download our free 360 performance review template here.
There are a number of significant benefits that accrue to both the organization and the individual as a result of an effective and professionally conducted performance appraisal, including:
Feedback to employees. Appraisals provide employees with an opportunity to receive feedback on their performance, both positive and negative. This feedback can help employees to identify areas where they are excelling and areas where they need to improve. Companies also encourage managers to have weekly one-on-one feedback and check-in discussions with their employees to provide feedback, review goals and adjust accordingly. This helps to ensure that employees are receiving consistent feedback and that their managers are aware of the support employees might need.
Goal-setting. Performance appraisals can be used to set goals for employees for the next year or for a specific period of time. This helps employees to stay focused and motivated.
Identifying training and development needs. Appraisals can help managers to identify employees who need training or development in certain areas. This information can be used to develop training programs that will help employees to improve their performance.
Making compensation decisions. This can also be a time to make decisions about employee compensation, such as salary increases, bonuses, and promotions.
Improve employee engagement. When employees feel that their performance is being evaluated fairly and that their feedback is being taken seriously, they are more likely to be engaged in their work.
In addition to these benefits for employees, performance appraisals can also benefit employers. For example, performance appraisals can help employers to:
Identify high-performing employees. Performance appraisals can help employers to identify their top performers, who can then be rewarded and given more responsibility.
Identify areas for improvement. Performance appraisals can help employers to identify areas where their company needs to improve, such as training or resources.
Develop a succession plan. Performance appraisals can be used to identify employees who are ready for promotion or who could fill other key roles in the company.
Reduce turnover. When employees feel that they are valued and appreciated, they are less likely to leave their jobs. Performance appraisals can help to create a more positive work environment and reduce turnover.
Once the performance appraisal is complete, the employee and manager meet to discuss the results and develop a plan for improvement. This plan may include setting new goals, providing training, or providing additional resources.
Performance appraisals can be a valuable tool for both employees and employers. When conducted effectively, they can help employees to improve their performance, achieve their goals, and develop their careers. Employers can also use performance appraisals to identify high-performing employees, reward and recognize employees, and make informed decisions about compensation and succession planning.
How can managers gradually progress from a once-off annual review to a more effective model of continuous feedback and a culture of performance? Firstly, giving your employees constructive feedback to let them know what they can improve on aids towards their personal development, something that we know is important to them. Likewise by accepting feedback from an employee it allows you to grow as a leader and a manager and will benefit you in the long run.
A good example of a large company migrating from annual reviews to a culture of performance is Adobe. Adobe based its decision to move away from traditional performance appraisals on the fact that the annual process required 80,000 hours of time from its 2,000 managers, the equivalent of 40 full-time employees. Additionally, their internal surveys suggested that the workforce felt less motivated and inspired after each appraisal.
Instead of annual reviews, Adobe implemented regular update meetings during which managers provide coaching and advice around goal-setting, career development and 360-degree feedback. The objective is to help employees gain clarity about what is expected from them, guide them through performance improvement and assist in their overall career progression.
The Certificate in Performance Management includes training in best practices for conducting performance appraisal meetings that proves to current and future employers that you have the knowledge and skillset to bring the very best out of the people that you manage.
Simply relying on an end of year appraisal is no longer considered good enough. Learn about the more modern approaches to ongoing performance management and conducting performance appraisals, and how fast-growing companies are creating newer models that match fluid business strategies to adaptable performance management and appraisals. The Certificate in Performance Management will teach you best practices in all of these areas.
What Topics Are Covered in this Certification Course?
The training course and certification is for anyone involved in managing direct reports and teams. The course is primarily for those involved in business and industry but is also relevant for those in government, charity and other bodies.
Learn best practices in helping your team achieve their greatest potential. Become recognized in your company as an expert in running performance appraisals. Advance your career by becoming a Certified Performance Management Professional.
This training and appraisal course is delivered 100% online, including the exam. You will have up to six months to complete the 15-hour course which is comprised of video tutorials, case studies and e-books. Our goal is to educate and certify so you will have up to six attempts to pass the exam.
The course typically takes 10 hours to complete so you could become a Certified Performance Management Professional over a single weekend!
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