A Smart HR’s Guide To Creating a Seamless Employee Appraisal Process

Manish Nepal

December 28th, 2017 Performance Management  

Performance appraisal is a crucial process for organisations to boost employee productivity and improve their outcomes. But while performance appraisal is of such paramount importance, it is rarely put to good use. Many companies don’t really put out their best efforts to carry out performance appraisal process, which is why only 55 percent of employees believe that it is effective.

A growing number of HR professionals report that many managers don’t internalize the results of employee performance efforts. Performance appraisal has become a fad word across industries – just a formal culture for companies to show that they too have a standard procedure in place to measure individual competitiveness.

Performance Appraisal Raw Facts
The HR department runs an employee appraisal process to figure out how well employees are engaged with their work and what perks can better the chances their success. Statistics, however, reveal that 48 percent of companies don’t do anything to measure improved productivity.

The number is shocking, especially when the benefits of performance appraisal are taken into consideration.

Sixty-nine percent of employees say that they would work harder if their efforts are recognized. The same survey reports that 57 percent of these workers aspire to receive constructive feedback in their employee performance appraisal. Similarly, 72 percent employees are confident that their actual performance would improve if they were given more frequent employee appraisals.

Studies show that more regular feedback leads to a 14.9 percent reduction in employee turnover rates. This is backed up with the finding that 43 percent of highly engaged employees get regular performance appraisal.

These numbers paint a rather convincing picture about the importance of performance appraisal. In order to benefit from all of its positive impacts, however, a company will have to do employee appraisal in the correct way.

How To Improve Performance Appraisal Process

As an HR personnel, you can help to enhance the employee performance in your company by making your current employee appraisal process more effective and rewarding.

You can take cues from the following tips to design a performance appraisal process to yield optimum results:

Give continuous feedback
Once in a year performance appraisals are lackadaisical and don’t work. Workers need ongoing communication with team leaders and managers. A continuous process, like a quarterly review, is a more helpful way to keep employees motivated and address their work-related issues.

Personalize the process
Every employee is different; you can’t really use the same performance appraisal template to review individuals across different teams. Don’t fall for the easy trap – applying a sub-standard company-wide procedure to appraise all employees alike. Make your employee appraisal as dynamic, as specific to individuals as possible to truly appreciate their hard work.

Focus on future
Employee appraisals will work when it is focused on both the positive and the negative aspects of an individual’s work. But constructive criticism is incredibly valuable, coupled with a message that they really have a scope to excel in areas that are important for their professional growth.

A Forward-Thinking Performance Appraisal Method

The future of performance appraisal process relies on how well organizations can use technology to reward their best performing employees and communicate ideas to make them go the distance.

The only way for a great performance appraisal lies is to become more innovative in its approach. With new performance appraisal ideas at their behest, HR professionals can easily tailor and streamline their employee performance process without losing their mind or risking the business output.

Employee performance tracking in the recent years has already become intelligent in many ways. Modern apps and automated HR solutions allow HR professionals to keep a specific goal in mind when coming up with questionnaires or to determine which metrics are most important to track.

Furthermore, the performance appraisal process can be integrated with other aspects of human resource management. HRs can sync apps, exchange process data, and view the big picture. This can help an HR team to work with other departments to address pressing issues like high employee turnover rates, low engagement, absenteeism, and a low overall ROI.

The archaic ways of performance appraisal harped on being accountable, but they were too rigid to address the real issues. Fortunately, the advent of automated technology is changing all of that and making it possible to focus on raw metrics and concrete details that are invaluable for the organization.

Performance appraisal should be a part of a comprehensive talent management system rather than a goal in its own. When HR professionals understand the shift and demand an adequate solution for the purpose of metric tracking, they’ll see much better results.