Performance appraisal is the process of evaluating an employee’s performance over a specific period of time. The appraisal process is tied to promotions and compensation and therefore, it is a process that cannot be skipped. And, the performance reviews are an integral part of performance management. Often, organizations confuse between the two. Performance management happens throughout the year and is a business strategy that comes up with plans to improve and manage the performance of an employee, whereas performance reviews take place during the end of the fiscal year and the compensation-related decisions are taken based on the evaluation. 

Performance management has become a buzzword in recent years. We come across many inspiring examples like Google, Deloitte, abandoning the traditional appraisal processes and adopting the modern continuous process. The reasons why the companies are doing away with the traditional process is because, 

1. They consume time and effort  

2. The HR cannot focus on other productive works like enhancing the Employee experience. 

3. The appraisal forms hinder the productivity of employees. 

4. The monotonous process disengages employees. 

5. If not done properly, it creates a very stressful environment for everyone involved in the process. 

6. If there are too many employees under a manager, the appraisal process becomes a nightmare to the manager. 

7. The reviews are mostly subjective and biased. 

The companies are focusing on how to bring in the advanced technology into the performance review process to provide an excellent employee experience and also to mitigate the burdensome work of the HR department. As every HR and top executives know, the war for talents has begun. A report reveals that at least 47% of employees quit their companies and look for other jobs based on their performance results. Only the companies with a strong culture and effective performance management will be able to win and attract the best talents in the industry.  

Basic Features of an effective performance appraisal system 

1. Clear expectations 

2. Accurate and reliable data and reports 

3. Performance criteria – Measure what matters. 

4. Should meet your organizational needs. 

5. Post appraisal interview. 

Here are a few ways to reduce the time taken to complete the performance review process. 

Clear Expectations 

When the employees are aware of what is expected out of them, the performance will always be higher, also the productivity. The leaders should ensure that their individual objectives are relevant to their job description and are also tied to the organizational objectives. With the objectives being clear, the performance criteria will also not be ambiguous. Thus, there will be no room for confusion and the discussion will be on how to improve the performance. 

Reduce the number of appraisal forms 

“More than 5 full work weeks per year are spent on performance reviews by managers.” 

The appraisal forms ensure that the manager and the employee have prepared for the appraisal discussion. But if the number of forms to be filled in is more, then the employees’ focus will be not on the questions but the speed in completing them. Managers, too, will be focused on completing the forms. Thus, the forms will fail to serve the purpose of getting quality answers for the appraisal process. In order to steer clear of it, the number of forms has to be reduced. You could also use a form that can be completed by employees and sent to managers for review. This saves a lot of time for employees and managers. Besides, the process does not hinder their tasks and productivity. 

One manager is enough to review the form 

The senior managers or super bosses need not be involved in the approval of every appraisal form. Allow the line managers to take responsibility. There are chances of bias and subjective review. To avoid that, a team or an organization can adopt a 360 degree feedback process, where every employee provides feedback on the performance of his/her peers, managers, or direct reports. This could avoid bias and even help in identifying the future leaders of the organization. Jack Senger, CEO of Zenger/Folkman, a strengths-based leadership development firm, says, “More than 85% of all the Fortune 500 companies use the 360 degree feedback process as a cornerstone of their overall leadership development process. If you are not a current user, we encourage you to take a fresh look.” 

Continuous Process rather than once-in-a-year Approach 

During the performance appraisal process, the feedback is delivered mostly based on recent achievements or neutral opinions. If not, the employees and managers search all the files to take a single data to prove on his/her point. The time consumed can be reduced dramatically if the feedback, be it positive or negative, is delivered continuously and achievements are recorded now and then. Then, those reports can be leveraged during the evaluation of the performance. It can also be satisfying to both parties, and the effective performance evaluation system can help in forming talent development strategies. 

Adopt an Effective Performance Management Software to streamline processes 

The pen and paper approach is a mundane process that drains out the energy and motivation of the HR personnel, while on the contrary, the performance appraisal software has a profound effect on the satisfaction level of employees and human resources.  

The technology helps in the documentation of employee performance and improving productivity by providing accurate and reliable analytics. Besides that, the performance management software takes care of various talent-concerning operations and processes from goal-setting and development plans to performance evaluation and saves a lot of time for the management and HR department. It is highly significant to choose the right software for your organization. Each organization has a different structure and needs. Therefore, it is absolutely necessary to choose technology that can fulfill your needs or is customizable. Effective performance management software has the following features. 

1. Goal setting 
2. Continuous feedback 
3. 360 degree feedback 
4. Custom reports and analytics 
5. Normalization scoring     
6. Employee talent management 
7. Employee training 

These ways help to boost business growth and enhance the employee experience at your organization. Even your HR and managers are employees, and so reducing their burden also improves the overall image of your organization. Never forget that we are living in the experience economy where the customer experience, user experience, and employee experience are given the utmost significance.