Are yearly performance appraisals fit for purpose?
Traditionally, many firms managed performance through a formal yearly appraisal system, however even before COVID struck, there was a realisation that this approach was antiquated and served no real purpose or benefit to productivity. Expecting a manager to realistically assess an employee’s strengths and weaknesses over the previous 12 months is a tall order which inevitably results in more weight being given to recent achievements or shortcomings, which can lead to disillusionment on the employee’s part.
Alternatives to yearly performance appraisals
1. Employee Success Plans
The quarterly check-in approach using employee performance management software, such as the Access Employee Success Plan (‘ESP’) app and Path to Great tool is one such alternative. The ESP system allows for managers and employees to set out clear expectations by agreeing on goals, objectives and key measures for the upcoming quarter. It also allows employees to track their progress and even to seek feedback from colleagues on how they are performing in relation to specific goals. Sitting alongside this is the Path to Great tool which managers can use to plot employees’ overall performance and engagement on a graph, ranging from ‘under achieving’ to ‘exceptional,’ providing a useful visual of current performance and future aspirations.
2. The fast feedback method
The huge increase in remote working has also required managers to think outside the box and find ways to stay connected with employees and to monitor performance whilst working from different locations. The importance of adopting an everyday, collaborative management style is now being recognised. Many managers are now regularly checking in with/having ongoing coaching conversations with their employees and giving them real-time feedback on what is going well and where there is scope for improvement. As part of this movement, the Fast Feedback/impromptu feedback method is starting to gain traction. This is where fast, frequent, meaningful and future-focused feedback is given to employees to encourage a positive performance culture and boost productivity and engagement.
3. The 360-Degree Feedback Method
The 360-Degree Feedback method is another tool which some forward-looking organisations are integrating into their review process. This allows each employee to receive confidential and anonymous performance feedback from a variety of sources, such as his or her manager and between four and eight peers/customers etc, with the aim of providing a better understanding of employees’ strengths and weaknesses and helping to create a development plan.
4. Employee appreciation
Peer-to-peer recognition is a further practice which can bolster a modern performance management approach, through the use of employee recognition software such as Access’ Applause. The app allows employees to send a ‘shout’ to a co-worker to give them a metaphorical pat on the back for doing a good job, which is instantly morale boosting.
When reviewing our precedent Performance Management and Appraisal Policy (part of our Policies and Procedures for Law Firms’ eLearning product) during our recent quarterly review process, we decided to take the bold move to update its name to ‘Performance Development’ with the aim of encouraging firms to take more of a progressive approach.
So, what are you waiting for? Update your performance management strategy today – your managers and employees will thank you for it!