Appraisals play an impactful role in uplifting employee performance and aligning goals within any organisation. But what are appraisals, and why do they matter for employees and employers alike?
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 what are appraisals, how they support 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.
Appraisals usually involve no more than two people in the workplace: often a manager and a member of staff 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.
Appraisals 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
Appraisals are a great way to seek constructive feedback. They also allow managers and employees to work together in setting realistic and achievable goals that align with both individual specific career aspirations and the organisation’s overall objectives.
Here are some key reasons why appraisals are valuable to have in the workplace:
- 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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What Is Included In An Appraisal?
The appraisal process typically covers three major areas:
- Performance Evaluation
The manager and employee will 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 will also involve setting new goals and objectives for the next appraisal period (usually 6-12 months time; otherwise known as a 180/360 appraisal). This includes both performance-related goals and professional development plans, such as training or further skill-building opportunities.
- Employee Potential
Lastly, appraisals also offer 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 suitable for every employee within an organisation, regardless of their role or level of seniority.
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 company 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 discussions and ensuring that both parties are fully engaged.
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What is an Appraisal Procedure?
Here is what should be done prior to the appraisal, as well as during, and after the process:
Preparation
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
- Internal feedback from clients, colleagues, other managers, etc.
- A self-assessment completed by the appraisee
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 Meeting
The appraisal meeting typically follows a structured, productive format to ensure that all important points are covered:
| 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 honest, balanced feedback on areas where the employee excelled and areas where improvement is needed. Both perspectives should be respected. |
| 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 only with the appraised employee, 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.
Are There Any Laws About Performance Appraisal?
While performance appraisals are not legally required in the workplace, 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?
Here are some common questions that could be raised before, during, or after the appraisal, and our 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.
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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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