Can a performance appraisal system really influence employee engagement?

It is widely known that introducing a performance appraisal system has lots of potential benefits if used correctly, including staff retention, productivity, and company wide alignment so everyone is focused on the same goals. However, introducing a performance appraisal system will not automatically bring you employee engagement or productivity benefits. In order for this to happen, you must surround the system with the right messaging, and introduce aligned training and development. At Actus™ we know how important culture change is; but it is easy for an organisation to assume that things have been communicated effectively, and that people will want to change as a result. That is often simply not the case, and where so many change initiatives fail.

How can you enable engagement through your performance appraisal system?

To deliver success through the introduction of a performance appraisal system (leading to an increase in key business benefits like engagement and productivity) it is important to ensure that managers understand that the end result is not about completing a sheet on which everything needs to be ticked off. It is about quality conversation – 80% conversation and 20% appraisal will result in engaged staff and increased motivation to perform. But what is ‘quality’ when it comes to appraisal?

Quality conversations start with intent: a desire on the behalf of the appraiser to give a fair, honest, and positive appraisal experience. This does not mean just being nice, and it definitely isn’t about going through the motions. It requires preparation and reflection on past performance, future potential, and the capturing of relevant, specific behavioural examples. It is also a good idea to consider how the person being appraised may perceive their performance.

It is also vital to set the scene. Choose the right environment; somewhere that will give you privacy, and is without interruptions. Use a coaching style with open questions throughout that enables you to determine the mindset of your appraisee and adjust your language or tone to manage expectations. In most cases the feedback should be balanced towards specific positives, including some constructive and well phrased areas for development. Finally, ask the individual what their next steps are, or what they would like to focus on next year. The purpose of a performance appraisal system is to record this conversation and to provide structure and information back into the organisation more efficiently. It is wise to write the appraisal up while you are still together, but it doesn’t need to be chapter and verse. It only need record the essence of the conversation, and there is no reason why the staff member can’t do the typing!

By demonstrating to your employees you are invested in them during the appraisal process, they feel valued and engaged and hopefully excited about their work – which leads to more productivity and higher retention.

For more information on performance appraisals, and how they feed into performance management, download our FREE white paper on performance management below.

Alternatively if you would like to take a look at how Actus™ could help your business just drop us a line at [email protected], visit our website www.actus.co.uk, or book a free demo using the button below.