What is a performance appraisal?

A performance appraisal is a conversation between an employee and their manager. During this conversation the employee's performance is assessed. A reward is often attached to the outcome, a pay rise for example. If someone is assessed poorly, there can also be legal consequences, such as dismissal. In the appraisal, the manager sets out what the employee has been assessed on and what score they were given. That outcome is fixed, so the employee can no longer change it. The performance appraisal is part of the annual review cycle. Many organisations still work with a traditional annual cycle: a meeting at the start of the year in which you set goals, a discussion of your progress halfway through, and an assessment at the end of the year in the appraisal. More and more organisations are switching to the new way of appraising, though.

What is the difference between a performance appraisal and a performance review?

A performance review looks forward and is two-way traffic. A performance appraisal is more often about the past, and the conversation is usually one-way, from the manager.

Is a performance appraisal mandatory?

An employer is not legally obliged to hold a performance appraisal. Many organisations argue that it is wise to hold one, though. The reason is that it lets them record in writing how the employee is performing. If someone is not performing well, the file that has been built up provides evidence of it. Only then can action be taken during the appraisal. By introducing the continuous dialogue , you are in constant conversation about growth, development and performance, and the file builds itself automatically.

Why abolish the performance appraisal?

The traditional way of appraising is often experienced as nerve-racking and uninspiring. That is why more and more organisations are switching to a new way of appraising . It means putting people far more at the centre and giving them much more control. They are responsible for setting their own goals, and they can continuously ask for (360-degree) feedback from colleagues and others they have worked with. The three fixed conversations a year are a thing of the past. Employees and managers are in continuous conversation about progress, growth and personal development.

How can software help?

For the younger generation, supporting their growth and development with technology is an absolute must. An online tool like Treams lets you capture the whole review cycle . You can also set goals that serve as the thread through the appraisal and make notes of the agreements reached in these conversations. And you can ask for (360-degree) feedback from colleagues and external people and keep sight of your personal development. With the Treams mobile app you do all of this at any time of day, wherever you are. Software makes the whole process far easier to engage with. It also lets you break your development into small pieces, which makes it more manageable and your goals easier to reach. The current crisis will give performance appraisals a new form. Want to know what tips we have on that? You can read them here.