Appraisals play an impactful role in uplifting employee performance and aligning goals within any organisation. But what are appraisals, and why does it matter for both employees and employers?
Are you overdue for a performance review in the workplace to see whether or not your employers appreciate your hard working efforts? In this article, we will explore the purpose, process, and benefits of appraisals in the workplace. We will explore what are appraisals, how it supports performance development, and the key factors that contribute to successful appraisals. By the end, you’ll understand their importance in improving both individual and organisational success.
Key points:
- Understand what an appraisal is and its purpose in the workplace.
- Learn how often they should take place and where they should happen.
- Discover what is included in an effective process.
- Explore the benefits for both employees and employers.
- Identify key considerations for conducting fair and supportive appraisals.
What is an Appraisal?
An appraisal is a structured process where managers and employees meet to discuss job performance, set goals, and plan for future development.
It typically involves two individuals, often a manager and a staff member, having a face-to-face conversation to assess the employee’s progress, identify strengths and areas for improvement, and create an actionable plan for the future.
This meeting not only focuses on past performance but also on potential for growth and improvement. In many workplaces, this process is also referred to as a performance review.
The appraisal meaning lies in its ability to bring clear communication between employees and their managers, helping to align their goals. They are not just about evaluating what has been achieved, but also identify potential opportunities for you to progress beyond your expectations, following critical feedback and personal development.
Why Appraisals Matter
For one, they create a structured opportunity for constructive feedback. They also allow managers and employees to work together in setting realistic and achievable goals that align with both individual career aspirations and the organisation’s overall objectives.
Here are some key reasons why appraisals are essential:
- Performance Evaluation: Allows managers to formally review an employee’s work over a specific period, highlighting achievements and areas for improvement.
- Feedback and Development: Managers can use the appraisal process to provide clear and actionable feedback, helping employees identify their strengths and areas for growth.
- Motivation and Engagement: Engaging in regular appraisals helps employees feel valued, as they receive recognition for their efforts.
- Goal Setting: An important aspect is setting goals for the future. During these meetings, both parties agree on key performance indicators (KPIs) and objectives for the next appraisal period, making it easier to track progress over time.
- Succession Planning: Appraisals play a crucial role in identifying potential leaders within an organisation. By reviewing employee potential and readiness for advancement, companies can make better decisions regarding promotions.
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How Often Should Appraisals Happen?
While there are no legal requirements on how often they should take place, most organisations schedule them either annually, biannually, or quarterly. The frequency of these meetings depends on the organisation’s size, culture, and management style.
- Many companies hold yearly appraisals. These provide a broad overview of the employee’s performance over a long period and are useful for planning future career development.
- Some organisations prefer more frequent appraisals to ensure that performance is regularly assessed and any issues are addressed in a timely manner.
- In organisations with strong performance cultures, appraisals may be supplemented with regular one-on-one meetings to address ongoing performance and career development, ensuring that employees remain on track throughout the year.
What Should Be Included in an Appraisal?
It typically covers three major areas:
- Performance Evaluation
The manager and employee discuss the employee’s performance during the review period, covering successes, challenges, and areas for improvement. This includes feedback on how well the employee met the expectations set in the previous appraisal.
- Future Goals and Development
The discussion moves on to setting new goals and objectives for the next appraisal period. This includes both performance-related goals and professional development plans, such as training or further skill-building opportunities.
- Employee Potential
Appraisals are an opportunity to assess an employee’s potential within the organisation. Managers can discuss career development plans and identify ways in which the employee can progress, either through new responsibilities, promotions, or training opportunities.
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Who Are Appraisals For?
Appraisals are for every employee within an organisation, regardless of their role or level of seniority. Whether you’re a new recruit or part of the leadership team, an appraisal is vital to review your performance, set goals, and ensure continuous improvement.
At its core, the appraisal meaning revolves around encouraging open communication between managers and employees. By regularly assessing performance, appraisals ensure that both strengths and weaknesses are addressed, leading to better overall performance.
Everyone, from entry-level employees to senior managers, can benefit from this as they provide clear, constructive feedback and guidance on improving performance.
Where Should an Appraisal Take Place?
Appraisals should always take place in a private, confidential environment where both the appraiser and the appraisee feel comfortable speaking openly. In most cases, appraisals are conducted on business premises, but if a suitable space isn’t available, an alternative venue, such as a private office outside the main workspace, can be used.
Due to the nature of the discussions, appraisals should not be held in open spaces, public areas, or informal settings like coffee shops. During the COVID-19 pandemic, many were held via online platforms like Zoom or Microsoft Teams. While virtual meetings can work, face-to-face discussions are often more effective for having genuine communication and ensuring that both parties are fully engaged.
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What is an Appraisal Procedure?
The appraisal procedure is a structured process that requires careful preparation, execution, and follow-up. For it to be meaningful, both the appraiser and appraisee should invest time in preparing for the meeting.
Preparation Before the Appraisal
Both the appraiser (usually the line manager) and the appraisee (employee) should review several documents before the appraisal meeting to ensure a productive discussion. These documents might include the employee’s job description, performance objectives, and any feedback from other sources such as clients, colleagues, or other managers.
It’s also helpful for the appraisee to complete a self-assessment before the meeting. This allows the employee to reflect on their performance, identify successes, and highlight areas where they may need support or development.
Preparation also involves reviewing the team’s overall objectives and assessing how the employee’s work has contributed to those goals. This helps both parties align their expectations and ensures that the appraisal is focused on individual performance and the broader context of team and organisational success.
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Structure of the Appraisal Meeting
The appraisal meeting typically follows a structured format to ensure that all important points are covered, and the discussion is productive. Here are the steps that are commonly followed:
| Introduction | The appraising manager begins the meeting by explaining the purpose and scope of the appraisal. This sets the tone for a constructive conversation focused on performance and development. |
| Performance Discussion | The employee’s performance over the review period is discussed. This includes feedback on areas where the employee excelled and areas where improvement is needed. It’s important that this discussion is honest and balanced, with both the appraiser and appraisee sharing their perspectives. |
| Objectives and Achievements | The manager encourages the employee to talk about their strengths, successes, and areas for development. The goal is to ensure that both parties agree on how well the employee has met their objectives and what goals need to be set for the future. |
| Development and Training | Based on the performance discussion, the appraiser and appraisee should discuss any training or development needs. Whether it’s additional job-specific training, soft skill development, or leadership opportunities, this is a chance to plan for the employee’s growth within the company. |
| Conclusion | The appraising manager wraps up the meeting by summarising what was discussed and agreed upon. This should be done in a positive and enthusiastic manner, reinforcing the future plans and goals. Employees should also be allowed to react, ask questions, and provide feedback. |
Post-Appraisal Follow-Up
After the appraisal meeting, the appraiser must follow up with a written record of what was agreed upon during the discussion. This report should be shared with the employees, allowing them to review the action plan, objectives, and any required development activities.
If there are any disagreements, the employee should be given a clear explanation of the appeal process.
Common Pitfalls in the Appraisal Process
Despite the best intentions, some appraisals can turn into a mere “tick-box” exercise if not handled correctly. Managers should avoid approaching the process with a mindset of simply fulfilling a requirement. An appraisal should never feel like an assertion of authority or judgement, and employees should not perceive the process as unfair or unjust.
When conducted properly, these meetings are valuable tools that enhance performance and support employee growth. Organisations can use appraisals to build a more engaged and high-performing workforce by keeping the process fair, transparent, and constructive.
Are There Any Laws About Performance Appraisal?
While performance appraisals are not legally required for employers, there are several legal considerations to keep in mind when conducting them. Appraisals must comply with relevant data protection and equality laws to ensure fairness and privacy for employees.
One fundamental law to consider is the Data Protection Act 1998, which governs how personal information is processed and used. Under this act, the Information Commissioner’s Office (ICO) provides guidance to help employers comply. Specifically, the ICO has developed four codes of practice that employers should be aware of:
- Code 1: Covers recruitment and selection practices.
- Code 2: Governs the handling of employment records, including performance appraisals.
- Code 3: Addresses monitoring at work.
- Code 4: Focuses on the use of information about workers’ health.
Additionally, under the Equality Act 2010, employers must ensure that performance appraisals do not discriminate against any of the nine protected characteristics, such as age, gender, race, or disability. This means that appraisals must be conducted without any bias or favouritism.
It’s also important to note that appraisal procedures should not be used as a substitute for disciplinary action. If an employee’s performance is unsatisfactory, this should be dealt with separately through the organisation’s formal disciplinary procedures.
Read more about the Data Protection Act 2018 to ensure your personal information is handled correctly.
What Questions Could Be Asked in an Appraisal?
The exact questions may vary depending on the organisation, but they usually aim to assess both past performance and future goals. Employees are often given these questions before the appraisal meeting to allow them time to prepare their responses.
Here are some common questions and tips for answering them:
What are your biggest achievements this year?
How to answer: List the major projects, tasks, or objectives you’ve completed during the review period. Highlight what went particularly well, using measurable examples (such as improved sales or reduced costs) to back up your claims. It’s also helpful to mention any challenges you overcame, as overcoming difficulties is often considered a significant achievement.
How would you rate your performance?
How to answer: This question may be asked independently or concerning more specific abilities, such as teamwork or meeting deadlines. It’s important to be honest when answering. Inflating your self-assessment might contradict what your manager already knows, while underestimating yourself could harm your appraisal outcome. If there are areas where you feel you underperformed, explain why and how you plan to improve.
What objectives would you set for yourself?
How to answer: This question offers a chance to discuss your career goals and aspirations. Start by mentioning your successes and the skills you’ve already developed. Then, outline the areas where you’d like to grow and explain how acquiring new skills or responsibilities would benefit both you and the organisation. Mentioning specific projects or roles you’re interested in can demonstrate your enthusiasm and potential for advancement.
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FAQs
An appraisal meeting typically lasts between 2 and 3 hours. If held in person, many people find it useful to have a computer available to complete forms at the end of the meeting.
You should be completely honest in an appraisal. Inflating or downplaying your performance can contradict your manager’s understanding. It’s important to acknowledge areas where you may have underperformed and explain your plan for improvement.
Sources
Privacy Helper. (2021) Data Protection Act 1998 – A Summary of the 8 Guiding Principles. [online] Available at: https://www.privacyhelper.co.uk/knowledge-hub-articles/data-protection-act-1998-a-summary-of-the-8-guiding-principles/ [accessed 10/10/2024]
Legislation.gov.uk. (2018) Data Protection Act 2018. [online] Available at: https://www.legislation.gov.uk/ukpga/2018/12/contents/enacted [accessed 10/10/2024]
Nick Cooper
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