Use appraisals to manage performance

Set up a performance management and appraisal system

There are four key elements in a good performance and appraisal system:

1. Set objectives - decide what you want from employees and agree these objectives with them.
2. Manage performance - give your employees the tools, resources and training they need to perform well.
3. Carry out the appraisal - monitor and assess your employees' performance, discuss those assessments with them and agree on future objectives.
4. Provide rewards/remedies - consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance. However, there can be dangers as well as benefits of linking rewards to performance.

See the guidance on employee appraisals at the Acas website.

How often should appraisals happen?

Many businesses carry out an appraisal after a set period for new employees or those who have changed jobs within the company. After that, appraisals once or twice a year may be enough.

Get it right from the start

A performance system will work only if you plan and implement it properly. Consider the following points:

• Make sure that you know what an employee's job involves. Written job descriptions are useful. Conducting job evaluations, or analysing and grading jobs within your company, might help you to focus on how the jobholder should ideally be performing.
• Try to keep the appraisal system simple, to save time and money.
• Make sure all managers are committed to the system.
• Keep employees informed. Discuss with employees, or unions if appropriate, before you implement an appraisal system.
• You need to be aware of the Information and Consultation Regulations 2004, which apply to businesses with more than 150 employees, and which will apply to all businesses with more than 50 employees from April 2008. The regulations give employees the right to be informed and consulted about changes to their employment.
• Once your performance system is in place, tell your employees about it in writing. Explain its aims and what it will mean to them. Include information about the appraisal system in any new starter information. See our guide on getting new workers started.

See guidance on employee appraisals on the Acas website.

Subjects covered in this guide

• Introduction
• What performance targets and appraisals can achieve
• Set up a performance management and appraisal system
• Agree objectives
• Carry out the appraisal
• Rating performance
• Reward good performance
• Here's how staff appraisals help us monitor performance and motivate staff

 

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