An annual employee performance appraisal is considered to be one of the most important evaluations that every company should conduct, no matter which sector or industry the business belongs. As an HR personnel, you should understand that it is not something that you should not take for granted because the continual growth and success of your business greatly depend on the quality of work performance of the people working in your organization. Without it, you would never have a clear and bigger picture whether the employees are able to fulfill all the duties and responsibilities that have been required from them since signing the employment contract.
Benefits of an Employee Performance Appraisal
A good performance appraisal system is not only beneficial for the company but for the employees, as well. Having a good performance appraisal does not only help in preventing common workplace problems, such as behavioral and work quality issues, but it can also boost the motivation of the employees to perform their daily duties and responsibilities to the best of their abilities and be more dedicated than ever. While these are the most common benefits brought about by conducting an effective employee performance, we have rounded up a rundown of other great benefits that you may want to know:
It Provides a Better Career Path.
Having long-term career goals are often essential. However, when an employee is too caught up in his or her daily busy routine, there is a tendency that he or she forgets about it. Conducting a performance appraisal can help them be reminded and address their long-term goals again. When the performance review of the employee is positive, then he or she may even want to consistently excel in his or her current position. On the other hand, when it yields a negative result, then either the HR personnel or the immediate head can plan a training to help them improve in the areas where they lack skills or experience. It makes sense to say that the result of the performance report can light up the way towards a successful career path. Hence, when the employee becomes more stabilized in terms of skills and work attitude, the health of the business is at its prime.
A good communication is probably one of the essential elements that dictate the growth and success of any business. One of the most common problems in the workplace is the lack of communication between the employer or management and the employees. However, a good performance appraisal can be a tool that you can use to resolve the lack of communication. By using the results of the appraisal, then you can be able to provide an honest yet professional feedback of the employee’s work performance. After holding a personal one-on-one talk with the employee, you are giving him a better understanding of the things that are expected from him or her and how the employee can improve his job and be an asset to the company.
Tips on How to Conduct an Effective Employee Performance Appraisal
An annual employee performance appraisal is extremely a vital process in your company that is why if you are looking to make the appraisal highly successful, you must carefully and thoroughly plan and prepare for the review. It is important to understand that an employee performance appraisal is not just about filling out the employee evaluation form and scheduling a meeting with them. Whether you are the HR manager or the head of the department, you must take enough time to prepare and collect vital information in order to give an honest rate on the performance of each employee. Additionally, it can also help you provide them with a productive feedback and determine the type of developmental activity that is right for them.
The Performance Review Process Should be Legally Valid.
The law stipulates that all employee performance appraisal must be job-related and valid and should not be based on external factors, such as the race, sex, color, nationality, and religion of the employee, said Patricia King, the author of Performance Planning and Appraisal. That is why for someone who will be conducting a performance appraisal, be certain that the result of the review is not biased and should be strictly based on the careful analysis of the job.
Use a Standard Performance Appraisal Forms.
A standard performance appraisal forms should include essential employee information, such as name, date the performance form was filled out, the time interval of the evaluation (bi-annually or annually), duties and responsibilities stated in the job description, rating system, commentary sections, and action plans for performance improvement, and signatory lines for the manager and employee. However, the employee can only sign the performance evaluation form if he or she agrees with the results.
Before you conduct a performance appraisal, it is crucial to have a clear set of goals. Take some time and ask yourself what is the message that you want to impart with the employee when he or she leaves the meeting. Do you want to the employee to be more motivated or does he or she needs to improve his or her work performance? If you want to discuss the employee’s future in the company, make sure that your goals are aligned with the purpose of conducting a performance appraisal.
Hold a Meeting.
The performance appraisal should be in draft form when you meet with the employee because you will need it when discussing the results of the appraisal together. It is only then that you can write down the comment in context after considering the things that have been discussed at the meeting. To ensure the success of the discussion, make sure to prepare a meeting agenda.
Let the Employee give his Own Feedback.
In order for the meeting to be effective, you should not monopolize the discussion and allow the employee to give his input about the results. After all, the effective and successful meeting is a two-way street. With an open communication, you and the employee can discuss thoroughly the performance appraisal. It will help you discover new things that can help you determine some areas where the company needs to focus and improve.