Employee Engagement - Is it time for smarter appraisals?

Unfortunately, most organisations either have no appraisal system or performance management software at all or they use an ineffective annual appraisal, which is often no more than a tick box exercise. With a survey from the Society of Human Resource Management revealing that 72% of organisations only have an appraisal once in the year, it is clear that there is some work to be done here.

 

If an employee is already having second thoughts about their work or are actively disengaged, the ‘once a year’ appraisal is often too late to get them back on track. By this time, they are probably either half way out the door or they have already found the nearest exit.

 

Once a year appraisals are simply ineffective, especially for millennials who have different expectations of their working environment. They want better communication and regular feedback and without meeting these needs, employers could easily find themselves struggling with retention.

A much more focused and beneficial approach is to offer regular feedback, which is something many forward thinking organisations are already doing. Research conducted by PwC in 2015 regarding performance management showed that many companies were looked at a new approach to appraisals and offering continuous feedback – scrapping the annual appraisal altogether. Smarter appraisals make more sense and if you want to keep your staff happy, it is worthwhile considering these and for many reasons.

 

 

A study by Gallup ‘How Millennials Want to Work and Live’ showed that only 29% of millennials are engaged and the rest are either not engaged or completely disengaged – not good news for businesses. It is time to take action and regular feedback is a great way to do it.

 

Employees like to feel valued and by providing them with regular positive feedback, they are more likely to feel a new sense of energy and enthusiasm for their role. Hard working staff won’t stick around if they don’t feel valued so by providing regular feedback, you will help to improve their engagement, both with the company and the workplace in general. Greater engagement leads to better overall performance, so it is a worthwhile investment.

 

It is easier to identify staff training and development requirements when feedback is regular and consistent. Not only does this give managers the opportunity to identify skills gaps, but it also helps to ensure employees feel that their development is important. It can also be useful for recruitment, as by identifying training needs and developing staff, it can make it easier for the business to fill roles internally. Employees are not just concerned about how much money they are earning, most (especially millennials) are looking for opportunities to develop. If you don’t take action to identify the training needs of your staff and to offer them development, they are unlikely to stick around for long.

 

 

If you only sit down to an appraisal once a year, it is unlikely that communication is effective within your organisation. It is important to ensure regular communication with your employees, as this can strengthen the relationship you have with them. It makes them feel included and it can help to ensure any issues are raised, before they become a serious problem. A lack of communication is one of the reasons for unhappiness in the workplace, so by using smarter appraisals, you can help to ensure your employees feel involved and truly part of the organisation.

 

Appraisals should always be positive and instead of the rigid annual appraisal, why not make them something enjoyable for employees to look forward to? Use them as a time to recognise your workers, share ideas and strengthen the relationship you have with them. If you do this consistently across your workforce, you can guarantee you will have a happier and more productive workforce.