HR Bulletin

Confused About Performance Appraisals and How to Conduct Them Effectively?

Posted on February 21, 2023 by MeganM - HR, Leadership, Policies and Procedures

Performance Appraisals and How to Conduct Them Effectively

As a business owner or manager, you are responsible for ensuring that your employees are performing to the best of their abilities. One way to measure and improve their performance is through performance appraisals. In this blog, we will explore what performance appraisals are, why employers should conduct them, and how to conduct an effective performance appraisal.

What are Performance Appraisals?

A performance appraisal, also known as a performance review, is a process in which an employer evaluates an employee’s performance over a specific period. The purpose of a performance appraisal is to assess an employee’s strengths and weaknesses, set goals for the future, and provide feedback on their job performance.

Why Employers Should Conduct Performance Appraisals

There are several reasons why employers should conduct performance appraisals, including:

1. Goal setting: Performance appraisals provide an opportunity for employers and employees to set goals for the future. This helps to ensure that both parties are working towards the same objectives and that the employee knows what is expected of them.
2. Improved performance: Performance appraisals can help to improve employee performance. By providing feedback and setting goals, employees can work to improve their performance in areas where they may be struggling.
3. Employee development: Performance appraisals can also be used to identify areas where an employee may need additional training or development. This can help to ensure that employees are continually developing their skills and knowledge.
4. Employee engagement: Performance appraisals can help to improve employee engagement. By providing feedback and setting goals, employees are more likely to feel valued and motivated in their role.

How to Conduct an Effective Performance Appraisal

To conduct an effective performance appraisal, employers should follow these best practices:

1. Prepare in advance: Employers should prepare for the performance appraisal in advance. This includes reviewing the employee’s job description, previous performance appraisals, and any relevant performance metrics.
2. Acknowledge: Employers should acknowledge the employee for their contribution to the business’ and team’s success and also acknowledge them for their achievements both professional and personal.
3. Set clear expectations: Employers should set clear expectations for the performance appraisal. This includes communicating the purpose of the appraisal, the process that will be followed, and the outcomes that are expected.
4. Provide feedback: Employers should provide feedback on the employee’s performance. This should include both positive feedback and areas where the employee could improve.
5. Set goals: Employers and employees should work together to set goals for the future. These goals should be specific, measurable, achievable, relevant, and time-bound.
6. Create an action plan: Employers and employees should create an action plan for achieving the goals that have been set. This should include specific steps that the employee can take to improve their performance.
7. Follow up: Employers should follow up with employees after the performance appraisal to ensure that they are making progress towards their goals. This can include regular check-ins and progress reviews.

Frequency of Performance Appraisals

The frequency of performance appraisals can vary depending on the needs of the business and the employee. Some companies conduct performance appraisals annually, while others may conduct them quarterly or bi-annually.

Regardless of the frequency, it is important to conduct performance appraisals consistently and to follow the best practices outlined above. This will help to ensure that the performance appraisal process is effective and that employees are receiving the feedback and support they need to improve their performance.

Key Takeaways

1. Performance appraisals are a process in which employers evaluate employee performance over a specific period.
2. Employers should conduct performance appraisals to set goals, improve performance, develop employees, and increase engagement.
3. To conduct an effective performance appraisal, employers should prepare in advance, set clear expectations, provide feedback, set goals, create an action plan, and follow up.
4. The frequency of performance appraisals can vary depending on the needs of the business and the employee.

If you are interested in learning more about performance appraisals or need assistance conducting performance appraisals for your employees, please contact us via our Contact Form or by email at megan@mmchr.com.au. We can provide expert guidance and support to help you improve your performance appraisal process and ensure that your employees are performing to the best of their abilities.