Performance appraisals are used to track employee performance against a set of goals or expectations specific to their role. The goal is to use the process as a positive and constructive tool that provides clarity around these expectations.
The performance appraisal process enables quality feedback to employees so that they know exactly where they excel or need to improve, helps both employers and employees understand what behaviours can be modified to create better work habits, and provides the information needed to determine pay adjustments, promotions, and employee development.
It is also important that the process doesn’t end with the appraisal. When problems or performance issues are identified during the performance appraisal, there need to be corrective measures put in place to help the employee improve their performance and meet their goals. The same goes for positive outcomes. A lack of follow-through will undermine the process.
Having a performance appraisal template allows employers to streamline the process and bring a level of standardisation. However, there is no one-size-fits-all solution, and every business will need to personalise the template to each employee’s role and goals. The My Business Workplace Performance Appraisal Form is a sample document that can be used to easily tailor the process to your business’s needs.
What should it include?
There are a few key inclusions that need to be in your performance appraisal form to get the most out of the process.
Firstly, there is no point in conducting appraisals if either party is unsure of the reason, so you need to outline the purpose within the form itself. Part of this is also outlining the performance standards for the employee so that they can accurately benchmark themselves against the role’s requirements.
The actual evaluation section is an area that will require a lot of tailoring for the specific role. However, there are plenty of standard questions that can be incorporated. Importantly, self-assessment needs to be included in any evaluation to gauge if both parties are on the same page.
Lastly, there need to be specific and measurable key performance indicators (KPIs) and objectives to plan ahead, as well as any training and development that can help set the employee up for success and achieve their goals.
What are the risks?
Not having a performance appraisal process in your business can lead to several risks, which range from continued poor employee performance to claims of unfair dismissal. A lack of performance appraisals or a poorly implemented process creates the risk that disciplinary action doesn’t have clear evidence to support the decision.
A clear performance appraisal form can demonstrate that performance expectations were well known and documented in writing.
How we help
My Business Workplace has all the templates and documents you need for successful performance management.
There's a Performance Appraisal Form, Performance Management Checklist, Code of Conduct, Disciplinary Policy, and much more.
Free Performance Management Guide
Download our free Performance Management Guide and we'll walk you step by step through the process. You’ll learn about different ways of approaching performance management, what the law says, how to give and receive feedback and how to manage underperforming employees.
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