Performance appraisals are integral to a well-run enterprise. While it has not been a process that was looked forward to, the new systems and appraisal processes have changed the way employees’ performance is reviewed. However, two big problems face employers when it comes to executing a performance appraisal process – untrained managers and a failure to link the performance appraisal expectations to measurable results.

Under these problems is a list of other errors that hamper the smooth progress of an appraisal process. For instance:

Untrained Managers

A performance appraisal is more than bringing in tools and technology to the process. It doesn’t automatically mean that the managers are equipped to conduct them effectively. Each enterprise has unique needs, and they practice employee performance and management according to those needs. Therefore, the managers who are expected to review their teams’ performance must be trained to ensure that it is done fairly and efficiently. The training must include a thorough review of the various forms, the rating system, and data analysis. All employees of an enterprise must be trained at the start and offered refreshers regularly, regardless of how long they have been with the enterprise.

A Lack of Results-based Measures

More often than not, rating employees on their leadership abilities or customer service skills don’t have defined outcomes that can be measured. It is because these criteria can return a subjective response. Therefore, the performance appraisal process must allow the managers and employees to judge performance purely on objective, measurable outcomes. For instance, sales numbers and customer evaluations are measurable and can provide critical insight into employee performance.

Moreover, not having results-based measures can lead to inconsistent ratings. What one manager considers poor performance, another may believe that the employee has met the desired expectations.

Not linked with Performance Improvement

The objective of a performance appraisal is to discover the strengths and weaknesses of an employee, thereby seeing areas of improvement. It is essential to aggregate and use the outcome of the performance appraisal system to plan for learning and development. Opportunities for training are key areas that keep employees loyal to an enterprise. It lets employees know that the organization is interested in their individual growth. This is achievable only if the performance appraisal is linked with performance improvement.

Most errors, if not all, of the performance appraisal processes, can be avoided with a comprehensive software solution and by adopting best practices.

OKRs

Not every employee has the same objectives or job description. Using OKRs helps the appraisal process by aligning the employee’s goals to the organization’s. The goals could be short or long-term. Therefore, setting the goals and designating a specific evaluation period is imperative. It is equally essential that the employees understand their goals and how they will be measured. The performance appraisal system must allow the organization to customize the evaluation based on individual roles, responsibilities, and goals. This way, the organization can ensure that they are equally focused on their employee’s development.

360-Degree Feedback

Employees tend to shy away from self-appraisal and rate themselves without much thought given to its reasons. Organizations may find it a challenge to put 360-degree feedback in place. However, if employees are informed of the objective of such feedback, it is possible that there will be a greater level of accuracy. The 360-degree feedback includes not just self-appraisal but peer feedback and manager feedback. A well-rounded process ensures that the true measure of an employee’s performance is revealed. It also gives managers an insight into the areas that require further mentorship and training.

Objective Reviews

While rating scales are helpful to review a team with the same or similar responsibilities, the concerned managers may not adopt the same method, and there may be some personal bias towards certain employees. The managers must be frequently reminded to be objective against each parameter. Such objectivity will provide insight into problems faced by the team and the individual. If a particular issue is a problem for the entire team, it is easier to address the problem. If one member has a skill issue, appropriate training can be organized. Therefore, the rating scales must be employed according to the project and required skills.

Wrapping up

Systems and processes can be accurate with the right technology. Still, the execution may not be as flawless as one desires. Fortunately, these execution challenges can be overcome by adopting a growth mindset among the employers and the employees. At the end of the day, the organization aims to achieve its goals and help its employees achieve theirs. After all, that is the hallmark of a successful enterprise.

Also Read: Top Methods for Employee Performance Evaluation and Appraisal

Also Read: Most Common Mistakes and Errors Made in Performance Appraisals