I recently attended a meeting of managers. One manager asked me an important question: “My company doesn’t have the funds to give out raises this year. So why should I be spending valuable time preparing assessments of my employees, when it won’t get them anything?”
As I explained to the manager, he was wrong. All employees want to know how they stand—even if it isn’t good. Information from the review will let them know more about their strengths and weaknesses and identify areas where training and development are needed. If an employee has plateaued in a position, the appraisal can renew the individual’s commitment to the job. But the benefits of performance appraisals don’t end there.
The manager gains, too.
The review ensures that employees receive feedback continuously, whether positive or negative. Ongoing feedback improves morale, because employees know exactly where they stand, and it enables managers to express concerns rather than store them up. The development part of the review—and there should be such an element—pinpoints what needs to be done now to prepare them for responsibilities to come.
From a negative viewpoint, it can affirm the need for an employee to undergo formal counseling.
Finally, because appraisals are formalized, such assessments are taken seriously—not only by your employees but also by you. You might stop an employee who is late and mention his tardiness—one of many times he is late. Alternatively, you might visit an employee and compliment her on research for a team project. But such comments, transferred to an appraisal template, carry considerable weight both in the employees’ minds and your own.
Such importance may explain why neither employees nor their managers enjoy the appraisal process. On one side, employees worry because of the consequences. Raises and promotions, sometimes even their job security, are at stake. Managers don’t like them, for they have to sit in judgment of others, whose cooperation and support are necessary to bottom-line success. Besides, they know negative comments will alienate workers. Appraisals may be seen by employees as just another way managers exert control over them.
How can you make appraisals go smoothly and effectively?