For employers, appraisals are an important part of the performance management process, to ensure employees are meeting their objectives and performance expectations. It is also important to give employees the opportunity to discuss their perspective on their performance and to share their career aspirations, and discuss how the organisation can help the employee to realise these, such as through appropriate training or progression.
But for many managers, conducting an effective and engaging performance review may be considered one of the more challenging tasks on their annual calendar. With the correct preparation and a positive mindset, you can make your employees’ appraisals productive, stimulating and a boost to your own management self-confidence. At the same time, a performance appraisal can engage and invigorate your staff, leaving them motivated to achieve their new objectives and refocused on their next career progression goal.
In this guide for employers, we discuss the role of the appraisal and best practice advice to optimise the value of appraisals to your employees, to you as a manager and to the organisation as a whole.
Benefits of effective appraisals
From an employer’s perspective, effective performance reviews provide a valuable opportunity to address various aspects of team and individual development. They allow employers to reward productive employees by offering them more responsibility, tackle problems directly, set clear objectives for the future, assess any training needs and gain insights into the group dynamics of their team. They can also help to reignite motivation among employees who may be struggling to stay engaged and revitalise projects that have been neglected.
For employees, performance appraisals are often a highly anticipated meeting where they receive feedback and have the chance to reflect on their roles. These meetings allow employees to gain recognition and reward for their contributions, though appraisals should not be confused with pay reviews, which are best handled separately. Employees can also use this opportunity to set objectives that align with their career progression, identify areas where improvement is needed, highlight the support they require from their employer, resolve any grievances, and seek reassurance and appreciation for their efforts.
Role of the appraisal in performance management
Appraisals should act as structured opportunities to review employee contributions, address challenges and set future objectives. However, best practices highlight that performance discussions should not be limited to a single annual appraisal. Feedback – both positive and constructive – should be given by managers on an ongoing basis and not held back for discussion at the appraisal. Regular feedback throughout the year ensures that employees stay aligned with organisational goals and have ongoing opportunities to improve and develop.
Continuous performance discussions help employers and employees maintain open communication and adapt to changing priorities. While formal appraisals provide a comprehensive review of achievements and areas for improvement, more frequent check-ins allow for timely recognition of successes and immediate resolution of issues.
Appraisals are also a platform for setting measurable objectives and assessing training needs. When combined with ongoing feedback, they create a culture of continuous development and engagement. By integrating timely and consistent performance discussions into their management strategy, employers can drive productivity and foster a high-performing workplace.
Who should conduct appraisals?
Line managers usually carry out the performance appraisal. They are likely to have day-to-day contact and be aware of the employee’s performance. It is also common for senior management to see the results, so that they are kept up to date on staff progress.
Another option is the 360-degree appraisal system, where a variety of people who come into contact with the employee give written feedback on their performance. This could include their line manager, peers, staff working below them, and in some cases even customers and suppliers. It may give a broad picture of how the employee is performing, but it can also be time-consuming and costly, and needs to be handled sensitively.
How to prepare for appraisals
The discussion should be based on concrete evidence rather than subjective impressions, so prepare by reviewing the employee’s performance over the appraisal period, using data from performance metrics, previous feedback and achievements.
Set a clear structure for the appraisal meeting, outlining topics such as performance highlights, challenges, future goals and training needs. Employers should also revisit the employee’s job description and previous appraisal notes to track progress and address any ongoing issues.
Employees should also know in advance what to expect during the appraisal. Schedule the meeting in advance and provide the employee with a summary of the topics to be covered. This allows them to prepare and contribute meaningfully.
During the appraisal
First and foremost, stick to the appointment. Whether your appraisee has been looking forward to the session with enthusiasm or trepidation, a postponement will cause disappointment. Show that you take your employee’s career seriously and that the appraisal is important to you too. If other people want to see you, put them off. Set the meeting for first thing in the morning to avoid being waylaid by other demands on your time.
As a guideline, allow an hour for the appraisal and hold all calls.
Start the appraisal with an upbeat, positive tone and warm greeting. Let the appraisee know that the conversation should be two-way, with their constructive, open and honest feedback critical to being able to discuss their achievements.
Then set the agenda. Explain the importance of the appraisal and that the purpose is to focus on the appraisee. A gentle reminder that salary is not on the agenda is not out of place, but be sensitive to individual circumstances.
Try to follow a logical order, ideally along the lines of your pre-appraisal form. The discussion should centre around:
- A review of objectives set at the previous appraisal
- What objectives were met? Is the appraisee deserving of special praise?
- What wasn’t met? Why? Was extra help needed?
- How much has the employee grown since the last review?
- How does the appraisee view their role and contribution to the team?
- Does the appraisee enjoy their job? What aspects do and don’t they enjoy?
- How does the appraisee assess their skills? Do you agree? Is any upskilling required? Remember to consider soft skills as well as technical in this assessment.
- Does the appraisee have a clear idea of their own role and the department’s role and how these contribute to the organisation’s overall success?
- What career progression plans does the appraisee have? How will these be achieved?
- Where could their development take them within the organisation?
- What specific targets can you set for the year ahead? Can the targets be realistically met?
- How will performance be measured?
- What training needs are required to fulfil these objectives?
- What other issues would the appraisee like to raise?
Ideally, you should focus on the appraisee’s performance and outcomes. Review their results and achievements and how well they met the objectives set in their last appraisal. Ask for examples of work rather than relying on anecdotal feedback.
Challenging discussions
Confrontations can arise when delivering uncomfortable news. You may be required to spell out in no uncertain terms that the appraisee is failing in a particular aspect of their job. This could be as simple a matter as timekeeping or personal appearance, or more sensitive, such as competence at specific tasks or ability to get on with colleagues.
Regardless of the issue you need to address, it’s important to be prepared. Decide in advance of the meeting how you can best phrase your comments. Can you at the same time highlight positive points? Are you being constructive in your criticism? What suggestions can you present to show how these issues can be resolved?
In many cases, performance appraisals can progress positively until you ask the appraisee if they have any other issues to raise. This can open a can of worms that you were unprepared for, such as personal gripes about other members of staff, complaints about office ergonomics, accusations of unfair treatment and grievances about workload or resources. Many of these issues may seem of little significance to you in the grand scheme of things, but to the appraisee they can be apportioned enormous importance.
Some of these problem areas can be shrewdly predicted. For example, perhaps colleagues can tip you off beforehand. If you suspect any potential gripes, ensure these are discussed at the appraisal, even if a little coaxing is required to bring them out. Some people would rather let moans and groans fester, but this only serves to lower the team’s morale. Instead, tackle them head on. Your proactive approach may even work in your favour. An employee who continually complains about an issue may be taken by surprise and take a less confrontational view if you raise the issue first.
However, if it is you who is on the back foot, taken unawares by some unforeseen problem, you’ll need to think quickly on your feet. Ask the appraisee to give you specific examples rather than generalisations. Asking for evidence is not unreasonable. Listen carefully. What is the problem really about? Is the problem being raised a cover for something less sinister that can be easily handled? Is the appraisee embarrassed about something?
Asking the appraisee to suggest how the problem could be resolved can also help to diffuse the situation. Rather than focusing on the problem, ask them to give the matter some thought and offer rational suggestions to overcome the problem. For example, if the issue is one of resourcing or ideas, perhaps the appraisee could be given a special project to scope out a solution.
Obviously, if the complaint is of a more serious nature, such as harassment or discrimination allegations, further investigation will be required. Make it clear you take the matter seriously and will take the appropriate steps immediately following the conclusion of the appraisal. Then return to the main appraisal and concentrate on positive points
Set objectives
Towards the end of the appraisal, you should have an open discussion with the appraisee in which you set objectives to work towards before the next review period. Even the most high-performing employee has things they need to improve, new skills to learn, additional targets to meet or new projects to run. So, set realistic objectives, each with a timeframe for completion, and align them to the organisation’s or department’s goals as well as the employee’s career progression plan.
After the appraisal
Give employees a written copy of their new objectives, and keep one in their personal file. Some companies give their employees a copy of the appraiser’s comments and invite the employee to record any comments they would wish to add. Your employees have a right to access appraisal or performance review notes.
It is good practice to give the employee the right to appeal if they don’t agree with the appraisal and the opportunity to have this noted on their file.
The appraisal isn’t over when the meeting ends. Complete any documentation, write up your appraisal notes, including any actions that need to be taken to address issues raised, the objectives that were discussed and agreed to and the aspects of performance that have been done particularly well. It’s usual practice to ask the appraisee to review and sign the notes and provide them with a copy to help keep them accountable for achieving the agreed objectives.
Then you need to make sure the action points are completed. If you have committed to exploring further training or arranging meetings with other departments, for example, set up these sessions as soon as you can. If your employee has had a positive appraisal and is freshly motivated, the worst thing you can do is fail to follow up and appear less wholeheartedly behind their career than you were in the meeting.
Knowing how to appraise staff will ensure you approach these meetings with the right mental attitude, effective preparation and a commitment to constructive follow-up. This allows you to turn your staff appraisals into positive, inspiring and performance-enhancing meetings that will produce a beneficial outcome for both you and your employee.
Key takeaways for employers
Things you can do to make the appraisal more beneficial include:
- Ask your employee to complete the appraisal form in full
- Explain you will need the form back at least two days prior to the meeting to give you time to review it
- Spend quality time analysing the appraisee’s comments
- Review previous appraisal notes; what were the objectives set?
- Review the notes you’ve kept about the employee’s performance since their last review period
- Talk to other line managers and colleagues for their feedback on the appraisee’s performance
- Talk to clients or suppliers for their feedback
- Assess work completed and projects executed. Could they have been done better? What was done well?
- Think about future departmental objectives – how can the appraisee contribute? How can you develop the appraisee to ensure they can help meet the required objectives?
To make the appraisal meeting as productive as possible:
- Set aside enough time
- Make sure the room you use is comfortable and that you won’t be disturbed
- Open the meeting with positive comments
- Use the appraisal form as a guide throughout the meeting
- Discuss any objectives set at the last appraisal and whether they have been achieved – make sure it’s a two-way discussion
- Remember that any feedback should be constructive
- Agree further objectives together
- Discuss and agree appropriate training which will assist the employee in meeting the incoming year’s objectives
- Make sure the employee understands the next steps, such as a pay review or training programme
- Always end the meeting on a positive note looking forward to the incoming year
Need assistance?
DavidsonMorris’ HR specialists work with UK employers on all aspects of workforce management, including guidance on performance reviews, reward and recognition. For expert advice specific to your organisation and personnel needs, speak to our experts today.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
