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Performance Appraisal Process

Performance appraisals can be stressful for everyone involved. But they don’t have to be.

The process will run smoothly for both yourself and your staff if you have a clear strategy in place. The end benefit is happier and more productive staff, and a business running at its best.

To effectively implement a performance appraisal strategy, you need to address three concerns. Why and how to complete a performance appraisal, and how often they’re needed to best serve your business.

Why You Need A Performance Appraisal

Your staff are the backbone of your company. You need to be sure that everyone is pulling their weight and of service to your business.

You want to make sure you keep great people happy. You don’t want to lose the people that go above and beyond for you. For their own benefit, they need to know there’s a clear reward framework to ensure they continue to perform and improve.

Things to consider:

Your basic expectations.

All team members need to be aware of whether they’ve done a good job or not.

They need to be clear of any changing requirements over the next period.

Consider how far each individual team member goes to deliver your point of difference.


Your reward framework.

Staff should know there is a chance for promotion, raise, and progression to keep them performing, striving and improving.

Knowing there’s an opportunity for promotion or more responsibility helps you get the best from your staff.

Having a clear framework in place will ensure that team members know they’ll be rewarded for the effort they put in.

Your awareness of underlying issues.

It’s important to bring to light any behaviours, workplace errors, workplace tension, and stress related issues that need to be managed.

Again, your staff have a huge impact on how well your business runs. Left too long, these issues can cause major problems for your bottom line.

Monitoring teams performance each quarter, means they can’t get too out of hand

How To Complete A Performance Appraisal

A performance appraisal involves contribution from both yourself and each individual team member.

What you need:

  1. A Plan.

Stop putting it off. It can be difficult to find time to do appraisals, if you don’t prioritise the need.

Each meeting itself needs to be based on fact, not emotion. Important conversations only get more difficult over time.

  1. Your contribution

As the owner, you need to find the time to complete the performance appraisal. Your role is reviewing individual performance, and team work.

Look at the level of job knowledge and commitment.

Remember to focus on performance rather than personality.

  1. Team member contribution

Your staff need to be able to reflect on their own performance and value to the company.

This includes being aware and able to communicate if they think they are ready to move up.

How Often?

Performance appraisals should be done each quarter. That sounds like a lot, but the level of information will vary across the year.

The first and third quarter appraisals should be very basic. Focus on unignorable issues that need to be addressed.

Mid year should be a little more in depth. How the team is tracking, and any changing requirements.

The end of year appraisal should be the big one. This is where your staff move up or move out.

Regular performance appraisals will allow you to stay in control of your team and ensure that each member is contributing at a high level.

performance appraisals

Engaged Teams Grow Your Business

Businesses with a team that is fully engaged grow and prosper. Your team is your greatest asset. When they are involved in the process and taken seriously when it comes to their performance they flourish.

I worked for a corporate many years ago that included us in the Vision of the business. We had a set structure for performance appraisal as well as strong clear KPI’s. When we reached our goals, we were rewarded. When the company reached its big goal of $1 Billion in turnover we were rewarded with a paid day off.

How invested were we in our jobs – heavily. We knew we were valued and that pushed us to perform.

How do you show your team their value? Remember feedback and acting on it is most important. Rewards can be anything from a movie ticket, gift voucher or even an extended lunch break or early finish. Start small if you have never done this before. Then watch the changes and your team grow.

If you would like insight into Critical Communication skills for sales > Click Here

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