Typically, many companies have carried out annual appraisals with their employees but with changes in how people work and are managed are annual appraisals a thing of the past now?
The Case Against
According to a YouGov survey 39% of UK workers surveyed said that they thought personal development reviews and appraisals were “time consuming” and “pointless”. That’s not exactly a 5 star review and if your employees are also thinking about annual appraisals like that then you’re already fighting an uphill battle. The views expressed by these workers are characteristic of many workers when they have been made to fill out a lengthy appraisal form in advance, then sat through a long meeting just to go over what they have already written and then actually they have gained nothing from it and nothing changes for them as a consequence of the meeting. It’s not hard to see why many employees don’t like and don’t see the value in annual appraisals. The time, and associated costs of staff being off the job, are factors that also go against conducting standard annual appraisals. If the annual appraisal system is poor and offers little to no value to the employer or employee then it is simply a gross waste of time and money. The standard 12 month appraisal period in itself does not help either. Employee performance tends to improve immediately either side of the appraisal meeting but it is then usually plateaus until the 12 month cycle comes around again. According to an article from People HR which looks at the history of performance management, appraisals have been around since the early 1900s but it wasn’t until the 1960s that they started to use the format that many now recognise of assessing employees’ performance by looking at objectives and targets. Given that a variation of this methodology still exists 60 years later then you can understand why many people consider annual appraisals to be outdated. The modern workplace has moved on, the use of technology is widespread and communication is instant. In that case the data used in an appraisal every 12 months can be viewed, analysed and discussed in real time and feedback can be given as and when needed. According to a survey carried out in the USA over 90% of employees want their manager to address performance mistakes or development opportunities in real-time when they happen so why wait for an annual appraisal to come around to look at the past rather than focussing on the future in the here and now?
The Case For
Annual appraisals can form part of an effective performance management process and can be of benefit to both the employer and employee. For annual appraisals to be at their most effective though they need to be meaningful, there needs to be engagement and commitment to the process from both sides. The website WorkplaceDNA offers a great summary of the aims of an annual appraisal and if you use this summary as the basis for conducting your appraisals then you will find that they make a significant contribution to the growth and development of employees and the organisation as a whole. Ensure that during the appraisal feedback is both given and received, having a two way flow of feedback is crucial. Acknowledging the employee’s successes and praising the contribution they have made to the company is a great way of motivating the employee during the appraisal. If an employee can see how they contribute to the business and their part in the bigger picture then they will be more motivated, engaged and less likely to leave. An appraisal should be the time to review and agree objectives as well, they may be for the following 12 months or chunked into shorter timescales, either way use periodic reviews or check ins to see how staff are doing with their objectives and ensure that you use the SMART approach to creating the objectives. Appraisal meetings should also look at employee development and how the company can support the employee with their aspirations. This could be short term learning aims or longer term career progression, whatever it is agree a plan and what support will be given. If annual appraisals are one element of a performance management cycle rather than a stand alone annual meeting with no review, follow up or accountability for the following 12 months then they can be hugely effective.
The Future
There is no doubt that annual appraisals as many of us know them are no longer fit for purpose but throwing the idea out of the window completely would be unwise. Each business will be different and so it is important to consider all your options but doing nothing isn’t a great idea. Think about what you and your team want and need, your process can even be different for different roles within your business. Even if staff work remotely or hybrid there is no reason why you can’t be flexible with appraisals and performance management. Make sure that you commit to whatever process you decide on, otherwise your employees won’t commit to it either. Follow through on actions, support staff to develop, provide frequent feedback and set relevant targets, if you do all of this you won’t go far wrong. If practical you can also use technology to help you and having data available in real time is great for tracking progress and having regular catch ups so that success can be identified and recognised and any issues can quickly be identified and resolved. Ultimately, an effective performance management process that includes appraisals along with other employee support, feedback and reviews will foster a positive, productive, forward thinking culture within your business and everyone will reap the rewards.
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Why not also check out our blog on a similar topic Getting Appraisals Right
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