How to Run Appraisals Properly

Performance appraisals are a critical part of your organisation’s performance management plan. But what should you do to prepare effectively for staff appraisals? When should you begin? And is it all about performance?

Perfect Appraisals Start Long Before Performance Ratings Are Due

As a manager, keeping your team on track means continuously assessing their achievements. While formal appraisals might only take place once or twice a year, they should be part of an ongoing performance conversation.
This means you should be regularly referring to your team’s objectives and taking notes throughout the year to support their formal appraisal. Not only does this give you a good idea of the performance of each member of your team, but it lowers turnover and improves employee engagement.

Prompt Employees to Prepare

To give employees their best chance of fully representing themselves, give at least two weeks’ notice of their appraisal. Provide them with the self-assessment form or access to your online appraisal system so they can review their objectives and consider their performance and development needs.

Make Time and Space

Book a private room where you won’t be disturbed. You will need at least an hour, possibly longer, and you should ensure you have enough time to hold any additional follow-up meetings that may be required. This means scheduling sessions well before your need to submit performance ratings or paperwork.

Suggest a Structure But Be Flexible

Think about how you plan to structure the session. While there’s no need to stick rigidly to the plan, it can help set expectations and calm any nervous team members. It’s good practise to start with the good and then move onto the negatives, ideally finishing on a strong point so you can both leave on a positive note.

Measure Performance Appraisals Against Clear Criteria

An appraisal should be a two-way conversation that, in part, concludes earlier performance discussions and helps you finalise your performance ratings. For those of you who have established clear SMART goals, assessing performance using the measures you’ve set should be easy.
Of course, not all appraisals are glowing reports; giving negative feedback needs to be handled delicately and it shouldn’t come as a surprise. If you’ve waited all year to give an unfavourable review, prepare for your employee to shocked and upset. Really, the end of year appraisal should summarise the conversations you’ve been having all year.

Understand Exactly What Each Performance Rating Means

To award performance ratings consistently and fairly, you need to ensure you fully understand the definition of each ranking. Consider individuals’ performance in relation to others on the team and discuss your interpretation of each rating with other managers. This will help to drive an equitable approach across the business.

Link Performance Appraisals to Pay Where Appropriate

If your pay and bonus schemes are performance related you should be able to explain clearly how ratings impact compensation. It’s unlikely you’ll be in a position to give figures just yet, but you need to be able to be able to explain the schemes in general terms. Your HR team should be able to provide training, information and guidance so you’re fully equipped in advance of your appraisals.

It’s Not All About Performance

Once you’ve got the performance section out of the way you need to discuss the individual’s development. Although you’ll ask them what kind of support they need from you, you also need to be prepared to offer your own take on what you think their areas for development are. Thinking about this before the appraisal will help you give the right guidance.

Look to the Future

Be ready to discuss next year’s objectives. Ideally, you should have a good idea what these will be so you can set them during the appraisal. Helping your team to understand the company’s priorities for the coming year and how their objectives fit into the overall picture will enhance their sense of engagement with the business.
Staff appraisals have the potential to form fantastic foundations for the year ahead. Prepare for success by doing your homework and helping your team to deliver their best performance yet.
For any help and support in planning for appraisals, contact Tercus HR on 0330 555 1139 or email at hello@tercushr.co.uk.