Seven ways to get the most from your appraisal

Here’s a sample of evidence that the current process isn’t working: 

In a national study by People IQ, 87% of employers and managers felt performance reviews were neither useful nor effective. 

A study by the Society of Human Resource Management found that 90% of performance appraisals were both painful and didn’t work. The study also found that they produced an extremely low percentage of top performance. 

Second only to firing an employee, managers rate performance reviews and formal appraisals as tasks they dislike the most. 

The upshot? Managers and employees both view the process as an unproductive, and often demoralising, waste of time and resources. 

Innovation and creative thinking 

Performance and appraisal systems are better than they were 10 years ago. Newer HR systems refer to best practice, link personal objectives to organisational objectives, use competency frameworks and look at deliverables as well as behaviours. 

The most noticeable improvement is that compulsory annual performance appraisal conversations actually take place, because managers are monitored on this. However, this advancement in HR systems has yet to significantly improve the appraisal experience and its impact. 

Practical tips for the perfect review 

Here are seven practical tips to help improve your organisation’s performance reviews: 

1. Expectations 

Ensure expectations and targets are clear from the outset. You need to be able to describe what ‘good’ looks like. 

2. Feedback 

Provide feedback on an on-going basis. Regular feedback and conversations about performance and expectations creates clarity, provides a sense of security and fosters continuous improvement. 

3.  Changeability 

Adjust the expectations and objectives when conditions change. The world rarely stands still for 12 months. 

4. Training 

Train managers to give high quality solution-orientated feedback and how to help motivate staff towards development. 

5. Positive feedback 

Ensure that managers don’t neglect positive feedback. Feedback needs to be genuine and specific, describing what positive performance elements the manager noticed. A “well done” is nice, but without specifics it’s not something the employee can learn from. 

6. Focus on quality 

Improve the quality of the appraisal conversation itself. Make sure that the managers are skilled in listening, questioning, giving feedback and setting SMART (specific, measurable, achievable, relevant and timely) goals. 

7. Open communication 

Don’t surprise your employees with a series of observations that have gone unmentioned. The formal appraisal should be more of a summary of experiences over the preceding period. This enables you and your team member to focus on the appraisal conversation and use it as an opportunity for positive development coaching.  

How to achieve better business results 

Does the answer to the performance review conundrum lie in coaching? Should organisations invest in training leaders as coaches, and empowering managers to become skilled and confident in giving feedback?  

Research around coaching and performance management by Bersin & Associates has shown that: 

• Organisations in which senior leaders coach very frequently had 21% higher business results. 
• Organisations with excellent cultural support for coaching had 13% stronger business results. 

A coaching leader’s mindset is different from that of a directive leader or manager. When giving feedback they are focused on building capability and helping staff develop and learn. They are more aware of the value of sensitive feedback and constructive appraisals.  

The quality of the appraisal conversations themselves will also improve when managers have good coaching competencies. Their ability to listen and build trust will be better, as will their ability to create an open positive learning environment. 

About the author 

Jan Bowen-Nielsen is the founder and director of Quiver Management, a team of 12 qualified and highly experienced coaches and leadership development specialists. He has over 20 years senior management experience from blue-chip corporations in the UK, Denmark and USA and 14 years as an executive coach, leadership trainer and change consultant. Jan has coached a large number of senior executives in FTSE 100 companies, as well as numerous business owners and entrepreneurs. He is a Fellow of ILM, has been on the Advisory Board of EMCC UK for a number of years and regularly speaks at conferences and business events.