How performance appraisals help with success

Performance Appraisals

How many people who work for you know what is really important to your business? Do they each know what they are contributing to its success? Do you?

Performance appraisals are becoming an increasingly effective way of getting staff to align their actions and behaviour to the corporate goals and vision set by the business, so if you are one of those who think that staff appraisals are about picking over someone’s weak spots and highlighting mistakes, then think again. The opportunity is being sorely wasted.

Staff appraisals perform a number of important roles. Handled effectively, and with the right motives, they can boost morale, identify opportunities for individual, team and even business development, enhance performance and increase productivity, motivate the workforce, secure ‘buy-in’ to corporate aims and objectives, improve two-way communication, reinforce working relationships and directly impact on business success.

Finding time to conduct effective performance appraisals can be a challenge. There is always seemingly something else more important to do. But if you recognise the vital ingredient it brings to your business mix, with all those opportunities to address activity and behaviour, you will inevitably conclude it is time well spent.

Effective staff appraisals should focus on three key areas of performance: Planning, Coaching and Review.

Firstly, Performance Planning is about identifying what needs to be done and clarifying exactly why, when and how. Performance Coaching involves considering what skills, experience and expertise are needed to deliver on expectations, and encouraging the individual to rise to that challenge. This may also include training, mentoring, coaching and an agreed programme of skills development to enable the individual to succeed. And finally, Performance Review is about evaluating achievements and acknowledging success.

To really work, performance appraisal has to be an ongoing investment of time and effort, and it has to be credible. The tremendous opportunities offered through an effective appraisal system will quickly fall by the wayside if people begin to question your methods or, worse still, motivation.

Don’t fall into the trap of using performance appraisal as a ‘carrot and stick’ incentive for pay reviews. While reward is often a reasonable outcome of performance appraisal, research has shown that, where a performance review is directed specifically to the determination of pay, individuals and, ultimately organisations, gain far less from the experience. Too much focus – and concentration – is invested in ￡ signs rather than performance.

Performance appraisal takes time, experience, skill and commitment if it is to be done successfully. It must be driven from the top, and adopted as an integral part of the strategic business culture of an organisation. But there are many tangible rewards for any company that signs up to the principle.

If you want more information about how to develop an effective Performance Appraisal system for your organisation, contact Linda at Cherryblue on 07973 507708 for an informal chat, or you can request a brochure on our training and development programmes from www.cherryblue.co.uk.We look forward to hearing from you.