A manager’s guide to conducting an appraisal or performance review

Conducting effective performance reviews are critical for fostering employee growth, engagement, and performance. Appraisals not only evaluate past performance but also set the stage for future development. Here’s a step-by-step guide for how you as a manager can conduct a productive appraisal that will benefit the individual and organisation.?

1. Preparation is key?

Before the one-to-one meeting, thoroughly prepare by gathering relevant information:?

• Review performance data: Collect data on the employee’s performance, including KPIs, completed projects, and any feedback from colleagues and clients.?

• Understand goals: Revisit the goals set during the last appraisal and assess the progress made.?

• Gather feedback: Seek input from colleagues, team members, or clients who work closely with the employee to get a well-rounded view of their performance.?

• Self-assessment: Ask the employee to complete a self-assessment before the meeting, giving them the opportunity to reflect on their performance to give insight into their perspective.?

2. Create a comfortable environment?

Performance reviews should be constructive and supportive:?

• Set the tone: Ensure the conversation is positive and forward-looking. The goal is to provide feedback that encourages growth, not criticism that demoralises the individual.?

• Choose the right setting: Hold the meeting in a private, quiet space where you can have an uninterrupted conversation. ?

• Schedule adequate time: Allocate enough time to cover all key topics without rushing. An appraisal should be a meaningful discussion rather than a quick formality – this will also demonstrate that you value and respect their time. ?

3. Start with the positives?

Begin by acknowledging the employee’s strengths and accomplishments:?

• Highlight achievements: Recognise specific successes and contributions the employee has made. This sets a positive tone for the discussion.?

• Express appreciation: Make it clear that their efforts are valued and appreciated. Positive reinforcement motivates employees and builds trust.?

4. Address areas for improvement?

Constructive feedback is essential for growth:?

• Be specific: Use specific examples when discussing areas for improvement. Vague statements can be confusing and unhelpful.?

• Focus on behavior, not personality: Address performance-related issues and behaviors rather than personal traits, keeping feedback objective and professional.?

• Offer solutions: Suggest actionable steps for improvement and provide resources or support to help the employee develop these areas.?

5. Set SMART Goals?

Work with the employee to set new goals for the upcoming period:?

• SMART framework: Goals should be Specific, Measurable, Achievable, Relevant, and Time-bound – giving clarity to help employees understand exactly what is expected of them.?

• Align with business objectives: Ensure the goals align with the company’s broader objectives while also contributing to the employee’s career development.?

6. Discuss career development and growth opportunities?

Performance reviews and appraisals are a great opportunity to explore the employee’s future ambitions and to identify whether they are invested long-term in your company. Discuss: ?

• Training and development: Any skills the employee would like to develop and identify training opportunities that could help them grow.?

• Career path: Explore the employee’s long-term career goals and how they see themselves progressing within the company.?

7. Encourage two-way communication?

The appraisal should be a dialogue, not a monologue:?

• Invite feedback: Ask the employee for feedback on your management style, team dynamics, and any challenges they face - This can provide valuable insights and build mutual respect.?

• Active listening: Practice active listening by giving the employee your full attention, asking clarifying questions, and acknowledging their input.?

8. Document the discussion?

After the meeting, document the key points:?

• Summary of appraisal: Create a written summary of the meeting that includes achievements, areas for improvement, agreed goals, and any other important discussions.?

• Employee acknowledgment: Share this document with the employee and ask them to acknowledge it, ensuring both parties are on the same page moving forward.?

9. Follow up regularly?

The appraisal process shouldn’t end with the meeting, revisit goals and provide support using the following tactics:?

• Check-in meetings: Schedule regular follow-up meetings to monitor progress on goals and provide ongoing support. Continuous feedback and check-ins help employees stay on track and feel supported.?

• Provide additional resources: If needed, offer additional resources, such as coaching, mentorship, or training programs, to help the employee achieve their goals.?

10. Stay compliant and fair?

Appraisals must be conducted consistently, fairly, and free of bias: ?

• Avoid discrimination: Ensure that all feedback is performance-based and not influenced by factors like age, gender, race, or disability.?

• Consistent standards: Apply the same evaluation criteria and standards to all employees to maintain fairness and avoid potential legal issues.?

Performance reviews and appraisals are an invaluable tool for driving performance, career development, and employee engagement. By preparing thoroughly, communicating openly, and focusing on growth, as a manager, you can ensure your appraisal process is meaningful and motivating. Well-conducted appraisal benefits not only the employee but the entire organisation, and fosters a culture of continuous improvement and mutual success.