There is a divide between HR professionals as to the benefit of the annual employee appraisal, however at Jude Read-HR Consultancy we believe it is a beneficial process. January is typically when appraisals are carried out and if planned and delivered correctly this is an effective tool.
Employee Appraisal Benefits
- Employee engagement
- A better understanding of the business for the employee providing for respect of business decisions
- Breakdown of barriers – them & us (employer & employee)
- Performance improvement
- Reducing absence & turnover
- Achieving the business goals
- Increased customer satisfaction
- Ultimately being able to gain that competitive edge & increase profits
Increasing Productivity & Efficiency
A well structured appraisal system will allow for a two way discussion about the employee’s performance over the previous 12 months and identification of areas for improvement, any training needs, area’s of strength and an understanding of the employee’s personal goals and ambitions.
The process also will enable both employer and employee to agree SMART objectives for the next 12 months which ultimately will contribute towards achieving the business goals.
Having agreed with the employer his or her past performance and future objectives, the employee has a clear understanding of what is expected and the process now provides a foundation for performance management in a fair and consistent manner.
For many small employers, an appraisal system is a process that is not top of the priority list, time is valuable and keeping the business running and making a profit has to be top of the list, unfortunately though this view could prevent the business from being efficient in many ways.
Additionally there is also a historic view that appraisals are linked to a pay rise, whilst this certainly can be the case if an employer wishes, it is not essential.
Of course we have to take into account the logistics of an appraisal such as who will conduct it if an employee has both a supervisor and a manager, and will that person know enough about the employee to fulfil the purpose of the process. The process also involves gathering the correct data to discuss and compare the previous years objectives against. Managers must be able to conduct themselves in an objective manner so each employee is treated fairly and equally, this is supported by setting the SMART objectives and again will help with performance management in the future if necessary.
Most importantly is TIME, an element that is so precious to everyone. It is important to arrange a time and location which prevents interruption, allowing full participation by both parties. There are some employers that have a barrier in place from the employees before the process is started, this being their perception that it is only a ‘tick the box’ exercise and holds no value or worth. The perception held by employee’s demonstrates the need to implement a robust process incorporating change management and a review of the embedded culture within the business.
This area is not one which can be covered in detail here, this is merely a few points to identify for those who have little or no experience in this area. There is not a ‘one size fits all’ appraisal system, many factors have to be taken into account about the business and the different groups of employees, some will be more complex than others.
Employee appraisal’s are for any employer looking to invest some time wisely now to assist them in achieving their business goals more efficiently in the future.
For training or help to design and implement an employee appraisal system please contact us on 01455 231982 | 07716 918272 to discuss how we can help.