The annual appraisal can be questioned by some for its validity in today’s workplace. So, why is this process being questioned?
In recent years, the appraisal has been a topic of conversation in respect to its effectiveness. In addition, some line managers may question that the annual appraisal is a time consuming and rigid exercise that does not adapt fast enough to business changes. Managers can also see the appraisal as a paper exercise that doesn’t add real value.
Many have reviewed this process and favour having more regular performance conversations are more effective than the previous one step annual approach, along with more engaging discussions with employees to discuss their career aspirations, training and development, and setting more flexible objectives each quarter to target outputs/delivery and in some cases reward for these achievements.
The appraisal has become a more effective tool for line managers and businesses to set targets, develop, and align their people to the business goals and achievements.
How to run an effective appraisal
Appraisals form a holistic approach to managing people’s performance. Aligning people to the overall aims of the business and linking in the company values and behaviours. Incorporating not only objectives to meet the business operational goals, but objectives also include learning and career development opportunities for each individual and can form part of the business’ succession planning activities.
Incorporating the following steps to build an effective appraisal will ensure that the time spent with employees support line managers achieving business objectives through their people:
- Review business objectives and align to department objectives
- Discuss with the employee and set individual objectives
- Complete the appraisal form incorporating: objectives (ensuring they are SMART*), development and training
- Complete 1-2-1s. The purpose of this conversation is to review progress regularly and to ensure that the objectives are on track. If support is needed, then this can be identified and actioned early e.g. training
- Set up the formal quarterly reviews during the year, to assess progress and sign off any completed objectives
- Complete a final formal review at the end of the year to close off the appraisal
Use the ‘SMART’ model when setting objectives. This tool provides a framework to set an effective objective, identifies what is being measured, the expected achievement, and when this is expected to be achieved.
S Specific
M Measurable
A Achievable
R Realistic
T Timebound
Training line managers
Having a fully invested management team to deliver appraisals is critical and can positively impact the business, driving success through their teams. Providing management training supports the development of these key stakeholders and ensures that they are aligned to the business’ appraisal programme.
In summary, an appraisal needs to be effective and aligned to business objectives, and engaging for your people. Incorporating people development will enable your business to grow, and to identify people to meet business critical roles e.g. future leaders, senior managers.
Implementing an appraisal programme to reflect on achievements during the year, with objectives reviewed at least quarterly, and incorporated into your regular 1-2-1s, means that time spent on this process results in business achievements and therefore becomes a valid process for line managers to deliver.
Whilst the appraisal does not form part of the capability performance process, identifying performance concerns can support these separate conversations.
If you are looking to implement an appraisal process, want to give your line managers training on conducting an effective appraisal, or have any capability performance concerns, then please contact the Nockolds HR team by emailing enquiries@nockoldshr.co.uk or call on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.