The employee is the greatest asset an organization has, so it is crucial for leaders to always keep an eye on their performance. Performance appraisal review is a formal assessment system in which managers evaluate employee’s work performance, identify key strengths and weaknesses, as well as offering constructive feedback to set future goals. Efficient performance appraisal is key to both team and individual performance and growth. When conducted the right way, performance appraisal provides beneficial outcomes such as increased motivation, enhanced working relationships, and the capacity to plan for succession.
So, what are the essentials of an efficient performance appraisal?
Understanding the basic of performance appraisal
As mentioned earlier, performance appraisal or performance review is a method to periodically assess employees’ performances at work. Most organizations carry it out annually, once every six months, or quarterly. Through the appraisal, HR leaders can see each employee’s weaknesses and strengths, so they can better manage and assign them to tasks that suit their capacities best. Managers should offer feedback to employees who indicate poor performance and discuss what the next actions should be taken to address the result. On the other hand, employees with satisfactory accomplishments shall be appreciated and rewarded, and perhaps even repositioned on a job that needs higher responsibilities. Not only can performance appraisal enhance retention, but it can also help your team stay intact with the company’s objective by cultivating growth mindset within.
Issues with performance appraisal
Employee performance appraisal does have many advantages in terms of monitoring achievement and making improvements. However, the notion of having to go through annual performance appraisals often strikes many employees with anxiety. There are many reasons why employees feel anxious about undergoing performance appraisals. This is often linked to their own performance or management style. While it is tricky to dictate what an employee has to feel about a certain company system, HR managers can opt for prevention acts. As a starter, leaders need to know different types of performance appraisals to ensure they adopt the right one that fits their needs.
360 Degree Feedback allows various elements of the company to review the work of an employee. These elements include self-assessment, peers review, managerial review both from the same or different teams. If necessary, customer reviews can also be taken into account. These various sources of assessments help the result to stay objective, and you can also see the employee’s output from different angles. 360 degree feedback is an effective method to understand your employee as a whole.
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Assessment Center Method (ASM) includes the participation of a group of employees in a set of exercises to learn more about their personalities and styles of work. This method can be time-consuming and expensive, but the result is worth the effort put in. In the ASM, employees are asked to participate in activities where they discuss, exercise, and work together on solving problems. Not only does it give each employee a clear picture of how others perceive them, but it can also strengthen the bond within the team. More than an assessment of current performance, leaders can see employee’s expectations and how they depend on each other.
BARS was created as an answer to dissatisfaction with the subjectivity present in standard rating systems like the graphic rating scale. This is a relatively simple method where each employee is assessed through a set scale of rating based on the categories decided by the company. For example, a translation company assesses their employees based on the word count and accuracy of their work, an agency company reviews their employees based on the customer’s satisfaction, and so on. This method helps you easily see which employees work poorly and which employees work at their best.
Performance appraisal is a great way to assess essential values within a team, such as communication, teamwork, attitude, responsibility, productivity, and accomplishments. By reviewing these aspects, you can better manage their team and create an environment where everyone enjoys their job. Do not forget to reward the employees who deserve it, and in positive manners give constructive feedback to the employees who need it. After all, a healthy environment means happy employees, and happy employees mean the best output.