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7 Fatal Flaws in Your Company’s Appraisal Strategy and How to Avoid Them

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Appraisals are a massive contributor to a happy workforce, ensuring that employees feel heard and supported in their professional journey.

Feedback not only helps an employee know how they are performing in their role, but also ensures they know what they need to do in order to improve and meet their goals.

From a business perspective, the appraisal process helps maximise the productivity of the team as well as improve overall job satisfaction, paying close attention to the individual needs of each employee.

Although appraisals should be an integral part of a business, only 48% of people said they had performance objectives in place. There are various reasons that can lead to appraisals getting pushed back or simply not being carried out at all, but this can be a costly mistake.

In this article, we discuss some of the most common errors we see in business appraisal strategies so you can know exactly how to stay clear of them.

Why Are Company Appraisals So Important?

An appraisal, also commonly referred to as a performance review, is a process that allows an employee to sit down with their manager and discuss their performance at work. The aim is to review any successes, areas for improvement, and goals to work towards in the upcoming period. This tends to be carried out every quarter, six months, or even annually.

This is a mutually beneficial process that ensures employers and employees are on the same page, both having an understanding of expectations and contributions towards the wider team.

Traditionally, an appraisal would’ve been carried out by running through a paper form with various tick-box exercises and goal-setting tasks. Nowadays, companies have realised that a more modern approach offers much more flexibility than outdated techniques. Instead, using appraisal software offers time-saving features and integration options.

7 Common Flaws In Appraisal Strategies

To help you get the most out of your appraisals and create a positive experience for both parties, here are seven of the most commonly made mistakes that you can avoid.

Focusing on recent events

When a manager is preparing for the appraisal, it can be easy for them to end up only mentioning the recent issues or successes. The meeting should cover the whole period that has passed since the previous appraisal, whether that was the last quarter, 6 months, or year.

The aim of appraisals is to take into consideration the employee’s performance throughout the entire period, picking up on any common themes that impact their performance.

To avoid falling into this trap, a manager should have access to their appraisal software or file so they can add to it as and when they think of a discussion point. Preparing notes over time not only makes the process easier when the appraisal comes around, but it also results in a more productive meeting since the feedback is more comprehensive.

Sticking to a template

For managers who may not be entirely comfortable or familiar with appraisals, it can feel easier to follow a template found on the internet or in the depth of HR folders. Although these templates are generally effective at pinpointing the overarching discussion points, they can make the process very robotic and fail to achieve a productive outcome.

Instead, avoid using generic templates that don’t spark conversation. Wave goodbye to 1–5 scales and tickbox exercises, instead opting for questions that allow the employee to speak freely and voice any concerns or goals of their own.

Letting too much time pass

When work is busy and the to-do list keeps on growing, an appraisal meeting can often be one of those tasks that keeps getting pushed back into the calendar. Although hectic periods and deadlines are inevitable, it is essential that time is made to catch up with employees. Repeatedly cancelling or delaying the appraisal can make employees feel unappreciated and not cared for.

Once an appraisal has been carried out, it is wise to pop the next one on the calendar right away. By getting a date secured in advance, there are no excuses for double-booking the time or forgetting to schedule it. This also gives the employee a date to aim towards when they are working on their goals.

Avoiding difficult conversation

Nobody wants to deal with uncomfortable conversations based around employees performing poorly, but they need to be faced. Brushing issues under the carpet is not only going to cause frustrations among the wider team, but the problem could grow until it creates a much bigger issue.

Finding the perfect balance between avoidance and criticism can feel tricky, but there are plenty of ways to deliver negative feedback without damaging the relationship with an employee. At the end of the day, we’re all human and nobody is 100% perfect at their job!

Leading the conversation with positive feedback and acknowledgements of all of the things that the employee is doing well will prevent them from feeling as if they are not doing a good job. Then, discuss what areas can be worked on to see improvements, presenting them as professional goals that can be focused on together.

Not creating a 50/50 conversation

An appraisal should be a two-way conversation that allows both the employee and their manager to discuss how things are going.

It can be easy for the leader of the meeting to take charge and talk through the notes they have written down, but not give the employee a chance to respond or further question the feedback.

To avoid this, the employee should be encouraged to attend the meeting with their own discussion points. This may consist of areas they would like extra support in, tasks they’ve enjoyed working on and would like more involvement in, or any goals they hope to achieve.

Delaying conversations

When a manager becomes aware of an issue with their employee, whether that be a mistake they have noticed or some feedback from a different member of the team, it can be easy to push it to one side and wait for the next appraisal meeting to discuss further.

From the employee’s perspective, hearing about an issue that occurred months prior can make them feel out of the loop and self-conscious about their performance.

Instead of waiting for the next appraisal, a continuous conversation opening should be available. Consistent feedback is essential from both sides, and everyone should be comfortable reaching out to their colleagues to discuss any issues and how to resolve them.

Failing to follow up

Once an appraisal is complete, that should not be the end! Many instances see a manager fill out the appraisal form, send it off to HR, and never look at it again. This defeats the purpose of the entire appraisal process, as action needs to be taken.

The aim of the appraisal is to identify any issues and goals, so a course of action needs to be decided on. Whether the solution is to organise an extra training session, introduce a new process, or strengthen relationships across departments, the employee should be supported to help them meet their objectives.

By the time the next appraisal comes around, you can then look back to the discussion points of the previous meeting and discuss how they have been actioned.

Final Thoughts

An appraisal should be more than just a must-do HR exercise. Instead, it is a key opportunity for an employer to gain valuable feedback on their performance and discuss any concerns or professional development opportunities.

By being aware of the most common flaws that are made in appraisal strategies, you and your team can carry out productive appraisal meetings that offer plenty of opportunities for mutual growth and job satisfaction.