Making Performance Appraisals Work for You and Your Team

Performance appraisals—those two words are enough to bring out a mix of emotions in most of us. Whether you're a manager or an employee, the annual review can feel like a double-edged sword. On the one hand, it's a chance to reflect on achievements and set new goals; on the other, it can feel like walking a tightrope, balancing honesty with encouragement.

Let's be honest—appraisals often evoke a mix of anticipation, anxiety, and even dread. If this sounds familiar, you're not alone. Many managers approach the appraisal process as if they're tiptoeing through a minefield. How do you provide honest feedback without crushing spirits? How do you motivate without glossing over areas that need improvement?

For employees, the stakes feel just as high. The appraisal process can seem like navigating a crossroads—where past performance is weighed and future potential is outlined. It's a moment filled with hope and uncertainty as they await feedback that could shape their career path.

A New Perspective

But it doesn't have to be this way. Performance appraisals, when done right, can be a powerful tool for growth—for both you and your team. So, how do we transform this often-dreaded task into a constructive and even enjoyable experience? Let's dive into a few tips that can make all the difference.

Tip 1: Prepare Like You Mean It

No team member should ever be blindsided by a performance appraisal. I still remember one review I had over twenty years ago. My director sat me down and started evaluating me based on a "people developer framework" I'd never heard of! Half of the ten key performance indicators (KPIs) listed were entirely out of my control. I was baffled and, understandably, a bit miffed. I raised my concerns, and my director was just as surprised as I was—he hadn't realised that HR had not briefed everyone on the framework.

No team member should ever be blindsided by a performance appraisal

The lesson here? Preparation is everything. Ensure your team members know what they'll be assessed on well in advance. Regular check-ins throughout the year can keep everyone aligned, so there are no surprises when appraisal time rolls around.

Tip 2: Invest in Relationships Year-Round

Think of your relationship with your team as a savings account. The more you invest in it, the more interest you earn.

My former Managing Director had this down to a fine art. Every morning, without fail, he'd stroll around the office, have a chat, shake a few hands, and build connections. He does this every day as long as he is in Singapore, he is so consistent and dedicated to connecting with his team!!!! This daily habit paid off during appraisal season—because he had built trust over time, his feedback was always well-received.

Think of your relationship with your team as a savings account. The more you invest in it, the more interest you earn.

If you're struggling with those difficult conversations on performance improvement, the secret sauce is regular, informal communication. When your team knows you care about their growth and well-being, they're far more likely to take your feedback in stride.

Tip 3: Schedule It Like It Matters (Because It Does)

We've all been there—life gets busy, and appraisals get pushed to the bottom of the to-do list. But here's the thing: rushing through an appraisal does more harm than good. I remember a colleague who was given a rushed fifteen-minute review in the middle of a hectic day. She left the meeting feeling more confused than enlightened, and it took weeks to undo the damage.

Rushing through an appraisal does more harm than good

Set aside dedicated time for each review. Block off 60 to 90 minutes, and treat it as sacred. This isn't just another meeting; it's a pivotal moment in your team's development. By giving it the attention it deserves, you show your team that their growth matters to you.

Tip 4: Tailor Your Approach

One size does not fit all, especially when giving feedback. I managed a team where one person thrived on direct, detailed, data-driven insights, while another preferred a more conversational and empathetic approach. I quickly learned that my delivery needed to match their preferences if I wanted the feedback to stick.

Know what makes each team member tick and tailor your communication style accordingly. Whether they're motivated by results, relationships, or creativity, aligning your feedback with their preferences can make it more impactful.

Know what makes each team member tick and tailor your communication style accordingly

Tip 5: Manager Your Bias

Ah, biases—we all have them, whether we realise it or not. One common pitfall is distance bias, where we focus on the most recent events or people closer to us.

Distance bias - we focus on the most recent events or people closer to us

For instance, it’s far easier to remember one of your team members who did not do well in a recent client presentation or one member who just hit the last quarter’s sales numbers. Yes, you remember them clearly in your head! And if you are conducting a yearly performance review, you cannot remember what happened in January or February, right?

Similarity bias - we favour people who are like us

Another is similarity bias, where we favour people who are like us. These biases can creep into appraisals and skew our judgment. A friend of mine, a senior manager, once admitted that he found himself giving higher ratings to team members who are parents and are willing to work late while inadvertently being harsher on those who didn't. He kept a journal of feedback throughout the year, which helped him take a more balanced view during appraisals.

The solution? Keep a record of feedback throughout the year, almost like a journal. This way, you can ensure that your evaluations are based on a comprehensive view rather than a narrow snapshot.

The Path Forward

So, there you have it—performance appraisals don't have to be a chore. With some preparation, regular communication, and a tailored approach, you can turn these reviews into a valuable opportunity for growth and connection. Remember, the goal isn't just to tick a box; it's to help your team thrive. And when your team thrives, so do you. Embrace the potential for growth and connection in the appraisal process, and you'll find it a rewarding experience for everyone involved.

Managers who adopt a coaching conversational style can turn performance appraisals into powerful growth opportunities. If you’re ready to enhance your leadership, I offer training that equips managers with the coaching skills needed to inspire and develop their teams.

Get in touch with me to learn more about how my coaching skills workshops can help your manager approach their next appraisals with intention, clarity, and a dash of empathy. They'll be well on their way to making it work for everyone involved.