Whatever business you may be in, managing employee performance is one of the most important things that you do. It should never be just about filling-in paperwork - it is your opportunity to improve the company.
The recent age discrimination regulations have brought appraisals into focus as employers are now far less able to reward staff based on long service alone.
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Developing a scheme
One size does not fit all. The first step should be to set objectives for the scheme and to be clear about how you will evaluate whether the scheme is working. You may also need to vary the structure of the scheme for some departments, but the key principles should normally be consistent.
By their nature, most performance review programmes generate paperwork. However, once you have agreed the objectives of your scheme, the next step is to produce a system that minimises paperwork and focuses on the benefits of your managers spending time in review meetings. Anyone can tick boxes on a form – but what counts is the quality of the discussions and the resultant actions or improvements.
Create ways to measure the scheme’s success that do not focus on completing the paperwork, but rather on a positive outcome for both your business and your employees. Collect and keep the meeting records as these will be essential in making decisions about high flyers or poor performers.
Training
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To get the most out of any review scheme, but particularly a new one, managers who are going to carry out the reviews need to be trained in the operations of the scheme but more importantly in using the forum to improve the performance of their team, rather than just completing the paperwork.
Managers often struggle with employees who just don’t seem to “get it” but they often fail to change how they communicate with employees to get the result that they need. This is a key skill that all successful reviewers have.
Many employees are wary of appraisal schemes and may have had bad experiences in the past. This can happen when a review meeting turns into a disciplinary session or becomes a negotiation over salary. We strongly recommend that you run short training sessions for your employees, both to introduce the scheme and to help them prepare for the meeting.
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It is said that actions speak louder than words and certainly many review schemes lose credibility because, having put so much effort into the review meeting, little action results.
Every year a simple training and development plan should be set up for each employee. Training and development is not just about external courses and does not need to be expensive but it does need planning and reviewing each year to ensure that your employees and your business continue to get the benefits.
Heather Matheson is managing director of HR Insight, Kingston Smith’s HR Consultancy.
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