Establish a Solid Understanding of Performance Appraisal
Clean up the performance appraisal mess.
- The performance appraisal (PA) space is a mess of opinions, formats, methods, and techniques, making it difficult to decide on the PA approach that is best suited to your organization.
- Most organizations have cobbled together a performance appraisal program over time and aren't experiencing the benefits that a solid PA program has to offer.
- Misunderstood PA methods, rater biases, and unclear program goals can make performance appraisal a costly waste of time.
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Our Advice
Critical Insight
- Opinions on the value of performance appraisal range from thinking that PA is a panacea for all employee issues, to believing that PAs should be completely abolished.
- Line-of-business managers and HR professionals must realize that while no PA program is perfect, when it is done well, PA is a key driver of employee engagement and productivity.
- No organization's PA program will be exactly like another's. Individual templates and processes are organic in nature and typically represent a combination of several methods. HR practitioners and line-of-business managers need to draw from the PA approaches that are best suited to their organization.
- Informal coaching and feedback are critical to retaining and developing employees. Informal sessions should be conducted bi-weekly to provide timely feedback and enable employees to improve.
- 360-degree feedback sessions work well in team environments and if a manager cannot closely monitor an employee's daily tasks. Never attach salary, bonus, promotion, or discipline decisions to 360-degree feedback as the evaluations will be dishonest and inaccurate.
- Forced ranking and forced distribution are important elements to many PA programs. Use these tactics in individually competitive environments and if the culture permits it. Use them with the appropriate level of privacy applied if measures are subjective or the environment is team-based.
Impact and Result
- Become aware of what effective performance appraisals can and should deliver.
- Understand the benefits and challenges of PA methods, as well as how to overcome limitations.
- Learn how to draw from existing methods as a first step towards creating a PA program that will both motivate employees and positively impact the organization's bottom line.
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Unlock Sample ResearchContributors
- 119 organizations contributed information to assist with the development of this solution set through survey completion and interviews. Due to the sensitivity of the information, all contributors requested confidentiality.
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