What Firms Need to Know About Performance Appraisals

by | Nov 8, 2019

Feedback is critical to bolstering workplace morale, managing employee expectations, and establishing a company culture with a focus on high standards and peak performance. Studies have reported that performance development and assessment creates a winning environment by engaging workers in continuous communication, goal setting, and coaching. One study revealed that businesses implementing regular performance evaluations experience 14.9% lower turnover rates when compared against organizations that do not offer consistent employee feedback. Additionally, establishing control mechanisms for evaluating performance will help your business ensure compliance and adherence to vital project timelines and achievement of business objectives.

Human Resources can help create a comprehensive performance evaluation platform that contains the following key components:

  • Semi-annual and annual appraisals
  • Regular manager-employee communications
  • Routine assessment and modification of the platform based on growing company needs
  • User-friendly appraisal forms
  • Implementation of 360° supervisor-subordinate assessment program
  • Disciplinary procedures
  • Performance improvement plans
  • Warning/dismissal policies
  • Guide to effective communication

Performance management is rapidly evolving, and managers are challenged to initiate employee conversations that create a positive experience and keep team members motivated.  The following tips can ensure better results from performance assessment meetings:

  • Shift your mindset from evaluator to mentor to encourage professional development
  • Develop strong listening skills
  • Maintain ongoing performance conversations in addition to bi-annual or annual formal meetings
  • Collect feedback from your direct reports’ peers
  • Solicit constructive comments from your subordinates
  • Be transparent and balanced in both praise and criticism
  • Offer solutions and assistance for areas of improvement
  • Focus on future growth and effective next steps to attain set goals
  • Share your notes in advance of conversations to avoid blindsiding employees when appropriate

As stated by Jack Welch, former CEO of General Electric, “as a manager, you owe candor to your people. They must not be guessing what the organization thinks of them.”  Developing and maintaining an effective performance appraisal platform that includes regular communication is an essential step for managing human capital—a vital resource in any business.

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