Performance appraisals are an important tool to help managers and employees meet and discuss organizational priorities and set performance and production goals. Appraisals can also provide important benchmarks for employers for use in employment decisions such as those involving compensation, promotions, or layoffs.
A recent survey, however, suggests that many employers may not be getting all they can out of the performance appraisal process. The survey, conducted last year by consulting firm Watson Wyatt, revealed that just three out of 10 employees believe that their employer’s performance management system actually helps to improve performance. And fewer than four in 10 workers feel that the system establishes clear performance goals, generates honest feedback, or capitalizes on technology to streamline the process.
15-Point Checklist
We’ve put together the following checklist to help you evaluate your organization’s performance appraisal system. The more questions you answer yes to, the greater care you have taken in establishing your system and the better it will work for you:
- Do you have a written performance appraisal system?
- Is one person or department responsible for the system and evaluated based on its success?
- Does your system provide for annual appraisals and appraisal interviews?
- Have you capitalized on technology to streamline the appraisal process?
- Is the system based on your company’s written job descriptions?
- Is the system integrated with your organization’s overall business goals?
- Have you established uniform record-keeping rules for performance appraisals?
- Is there a review system in place to ensure appraisals are accurate, consistent, and fair?
- Does your system evaluate:
- Knowledge, skills, and abilities for the job?
- Whether previous goals were satisfied?
- Quality and quantity of work?
- Attendance?
- Has your system been reviewed by legal counsel for possible unlawful discrimination?
- Are supervisors routinely trained on how to do performance appraisals and appraisal interviews?
- Do supervisors continually appraise performance throughout the year, documenting “critical incidents?”
- Does your system provide an opportunity for employee feedback?
- Does each appraisal contain an action plan for improvement in the coming review period?
- Are decisions involving pay raises, promotions, transfers, layoffs, and terminations linked to your system?
10 Tips for Effective, Legal Performance Appraisals
Don’t let your performance appraisals fall by the wayside. Learn how to make them effective and legal with our exclusive White Paper, 10 Tips for Effective, Legal Performance Appraisals.