Copyright © 1998, Nanette Miner
Permission is granted to reproduce or excerpt this article if proper credit is given in this format:
Reprinted/excerpted with permission. The Training Doctor. Author: Nanette Miner. www.trainingdr.com

Five Rules for Performance Appraisals

Performance appraisals can be stressful for both the manager and the employee receiving the appraisal. The process of writing and delivering the appraisal can be eased, however, by following these five guidelines.

1. Start the appraisal process at least two weeks prior to the appraisal meeting. Complete the appraisal form in advance. This will allow you time to adequately consider each of the areas of assessment and to think of examples that you can use in the assessment. Gather any documentation you might need (i.e., notes-to-file, attendance records, last year’s appraisal). Give the employee ample notice of the date and time of the appraisal meeting, this will allow the employee to begin his/her preparation too.

2. Keep the examples observable and non-evaluative. Without explicitly linking an assessment to an observation, managers risk confusing, angering, or demoralizing their employees. The assessment, and the examples given in the assessment, should be non-judgmental, that is, they should be based on observable facts and not personal commentary.
Wrong: “You’re always late. You lack discipline.”
Right: “In the last month you have been late-to-work four times.”
In the above examples, the Wrong statement is a judgment (you lack discipline), it is accusatory, and it is generalized (always late). The Right statement references information that is observable and can be verified if necessary. The employee cannot contest the statement.

A word of caution: be aware of “halos” and “horns”. We tend to allow our personal feelings toward an individual to bias the way in which we assess their work performance. By basing your assessment on observable incidents and required job standards you lessen the chance of the employee accusing you of giving a poor appraisal because you, “don’t like me.” Conversely, you will avoid giving a more favorable appraisal to someone simply because you like them as an individual. Everyone will be appraised, equally, based on their performance.

3. Evaluate the person against the standards of the job and against their prior year’s development goal(s), if applicable. Do not evaluate a person’s work ability based on what a co-worker is capable of doing. If the job description states that a person must process 8 claims per hour, and they do, they are adequately meeting the standards of the job. The fact that their co-worker can process 10 claims per hour has no bearing on the first individual’s assessment. If the appraisal is a yearly process, and part of that process is setting developmental goals, such as learning a new software or taking on additional responsibilities, these goals should be reviewed and assessed in terms of completion and the quality of completion. If the goals have not been met, re-evaluate them and transfer them to this year’s assessment if still applicable.

When setting future goals, or correcting poor performance, tell the employee what the desired behavior looks like - tell them what you would like to see more of. Frequently the employee doesn’t know what “correct” behavior to substitute for the incorrect behavior. Additionally, if you cannot envision what the desired performance is, neither can your worker.
Wrong: “You need to work on handling customers better.”
Right: “Speak more slowly when talking with customers. You and I know insurance inside and out, but remember that most of what we speak about is very foreign to our customers.”
The Wrong statement, above, is too vague. The Right statement addresses a particular issue and suggests a way to correct it.

4. Do not dominate the conversation. The appraisal isn’t about you. You should speak approximately 40% of the time and let the employee speak 60% of the time. Build on his/her ideas and comments. Ask the employee how s/he feels s/he is doing in the job. Are there frustrations? Is there something new s/he would like to learn or additional responsibility s/he would like to take on? What can you do to make the job more enjoyable or more meaningful for the individual? Appraisals should be less about judging past accomplishments and more about planning for future development. People will happily work toward goals that they set, but rarely work happily toward goals that are set for them.

5. Close the appraisal meeting in a positive manner. Gain agreement with the employee regarding what was discussed and the goals that were set. Plan follow-up meetings if necessary. Ask the employee, “Is there anything else we should discuss?” S/he might have been waiting for the “perfect” opportunity to bring something up and sensing that the meeting is about to be over, will realize s/he should put it on the table now. Thank the employee for their time and tell them that you have great faith in their continued success with the company and the goals that were set.

Two final thoughts:

If at all possible, it is wise to separate appraisals and pay increases. While one (appraisal) contributes to the other (pay increase), they are not dependent on each other. For example, if Jane’s appraisal score last year was a four (out of a possible 4) and her pay increase was 5%; and this year her appraisal is also a four, but the increase is 3%, how does one explain that to the employee? Perhaps the lower pay increase is attributable to an economic downturn or large capital investments that restrict the amount of available moneys. By previously linking the appraisal score to a dollar amount, you’ve unnecessarily created a one-to-one correlation and set the employee up for disappointment this year.

Also, keep in mind that appraisals are legal documents. They are one of the first things looked at during legal investigations. The appraisal should be a record of information that has been communicated to the employee regarding performance and management’s evaluation of that performance. This fact reinforces the need for objective, standards based, appraisals.

It is your responsibility as a manager to develop your employees. Not only does having a more talented staff make your life easier, but it reflects well on you.