From the Ground Up, The Performance Appraisal

We all know how important a PA process is even if the annual process is about as much fun as a root canal.  It's a necessary evil for all businesses.  Employees need formal feedback.  When they don't have it they feel ignored. If they feel ignored, do you think they'll be motivated to go the extra mile?  Probably not.

Now, take a company with 100+ employees that has no PA program in place, and the fun begins.  The entire PA process has to be developed from the ground up. 

Process:  What type of process should be used?  An on-line appraisal?  Paper-based appraisal?  Electronic or manual tracking program?   What type of rating system will be used?  Should a software program be purchased?

Manager Training:  The value of the PA process.  Legal aspects.  Manager PA preparation.  Conducting the PA.  Rater Errors.  Setting Goals/Objectives.  What are the do’s and don’ts of the PA?  And, most importantly, what is the definition of leadership? 

Timing:  Focal/Common Review Dates or Anniversary Review Date?  What are the pros/cons of each?  What option is best for the organization?  For the employees?   Will the performance appraisal process be tied to annual compensation increases?

Assessment:   What are the competencies that should be addressed?  Adaptability?  Analytical skills?  Conflict resolution?  Dependability?  Motivation?  Teamwork?  Will the competencies be different for salaried and hourly employees?

Objectives:  Develop a training program for the managers.  Discuss SMART objectives.  Why are objectives necessary?  What are the company goals?

Performance Improvement Plan:  Develop a process that will tie to the PA.  Train managers in the proper application and development of a PIP.   Discuss potential liabilities in a PIP.  Can I have different completion dates for different employees on a PIP?  What if the employee doesn't successfully complete the PIP? 

Salary Increases:  Merit increase?  Equity pay adjustment?  Discretionary pay increase?  COLA?    Do the managers require training in identifying the different types of increases?  Develop an approval and reporting process for any compensation adjustment.  Are there salary bands in place?  Do we need to develop competitive pay bands? 

The above are just a few of the issues that will need to be addressed.  And I'm sure the list will grow!