How to avoid classic performance appraisal errors

How to avoid Performance Appraisal errors

In the last few years, the Performance Appraisal process has come under a fair bit of criticism, with not all of it undeserved. Research in the NHS has shown that a badly structured performance appraisal was more likely to reduce employee engagement than increase it. Which is fairly depressing! There have also been reports of organisations ditching any performance appraisal process altogether, which makes a good headline, but when you dig further you find that they’re actually replacing it with ongoing performance conversations and frequent feedback. The irony is, that is what a good performance appraisal should be about anyway!

Why do performance appraisals fail?

A performance appraisal should be a continuation of what is going on all year-round, it isn’t and never should be a substitute for regular 1 to 1’s and feedback. The problem truly stems from appraisals being so infrequent; the work involved in making it happen is disproportionate. Both parties feel self-conscious and potentially anxious, and it becomes unnatural.

The design of many performance appraisals can also cause problems, as very often there is just too much to cover in the time available. Having a meaningful and measurable review process is the difference between engaged employees and enhanced output and a workforce that just goes through the motions of annual reviews. Yes, you need to review objectives (assuming you have set objectives) but if you also need to go through 11 competencies or values and agree on a rating on everything, then that is quite a heavy-duty conversation. Add into the mix the tension between rating performance and discussing career aspirations or development needs within the same conversation and for me, this feels incongruent.

Top tips to avoid performance appraisal errors and pitfalls are as follows:

1. Ensure that everyone has SMART objectives in the first place – you cannot appraise against thin air!
2. Demand a culture of ongoing feedback and 121’s so that recent performance can be monitored and objectives are updated if required. Check with your employees if their objectives are on track, development plans are met and milestones achieved.
3. Discuss development needs when they are relevant and implement ASAP to maximise employee performance
4. Keep numbers of competencies to a minimum or split them out from the end of year performance conversation – less is more
5. If you are using performance ratings, introduce a mid-year review to give both parties chance to share their views and do something about it before year end.
6. Use an effective performance appraisal software to carry out your appraisal and encourage year-round performance within your organisation.

While performance appraisal errors are inevitable to some degree, recognising and addressing them is important for maintaining fairness, accuracy, and credibility in the appraisal process. Organisations that; invest in robust software, training and development, encourage open communication, set and review measurable goals, can minimise these errors. Ultimately fostering a culture of trust, accountability, frequent constructive feedback and continuous improvement. By refining performance appraisal systems, companies empower their employees and set the stage for sustained success.

Actus offers a complete performance, talent and learning platform

Actus has evolved over the past 12 years, starting with pure performance management and building out our own fully integrated talent, learning, compliance and feedback functionality. We also have API’s to link to payroll/HRIS systems. This means you can start with Actus as a software solution for your initial requirements with full confidence that this can evolve over time to address future strategic requirements with fully integrated add on modules and the same great customer service.

Actus Performance Management

Our software empowers both employees and managers to proactively schedule meaningful employee performance conversations, in the appraisal process, exactly when they’re needed. Our software is designed by Chartered Psychologist Lucinda Carney. After years of experiencing first-hand the challenges of using clunky and insufficient HR software, she decided to set up Actus offering software that would overcome these challenges. Supported by training and organisational development services to provide a comprehensive solution for culture change. Actus performance appraisal software adapts to your unique questions and processes, not the other way around. This flexibility ensures that your specific needs are met. For HR teams Actus can remove the administrative burden with real time reporting and performance evaluation analytics.

Actus 360 Feedback & Survey Software platform

Increase employee’s performance, engagement and retention by increasing the self-awareness and skills of your managers. Actus 360 can bring your organisational values to life and embed a psychologically safe culture. Actus 360 Feedback Software offers a simple, efficient and user-friendly solution for managing 360 degree feedback. We offer a range of 360 solutions that can be adapted to meet any organisations diverse requirements from our off-the-shelf product Actus 360 NOW or our complete 360 Feedback & Survey tool.

Next Steps, and How Can Actus help in your performance appraisal process

For more information on how Actus can help your business to avoid these classic performance appraisal errors. Book a demo by getting in touch below.

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