Employee Appraisal Policy
Meaningful performance fuels employee productivity, optimism, engagement, and focus. Achieving this requires a performance appraisal policy thoughtfully designed to ensure the alignment of performance with business goals. It details employees' right to appraisal, including the associated timing and standards. Furthermore, it outlines the process for addressing unfair review grievances, covering the review and response procedures.
Created by
Ahmed Abdel Wahab
|
Human Resources Adviser
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What’s included in the performance appraisal policy?
A performance appraisal policy acts as a framework for assessing and guiding employee performance within your business. It centers around one core component defining the performance review process, specifying the frequency (e.g., annual), and responsible parties (e.g., supervisor, HR) emphasizing fairness and transparency.
It ensures employees' right to receive an appraisal of their performance periodically, access their appraisal records and discuss the outcomes. It also mentions individual development plans based on appraisal results to support each one in his own development journey.
Employee performance review policy highlights documentation & archiving, which means all appraisal records shall be securely maintained by the HR Department.
Ultimately, the appraisal policy provides a roadmap for ongoing growth, encourages open communication, identifies development opportunities, and aims to cultivate a more productive and engaged workforce.
Performance Appraisal Policy - Table of contents
1. Performance Review & Appraisal
2. Employee Complaints & Grievances
3. Employees' Rights & Development Drag
4. Documentation & Archiving
Why do you need a performance appraisal policy?
Establishing a formal, fair, objective, and regularly scheduled appraisal process.
Implementing standardized criteria for evaluating performance across all departments.
Providing a reliable framework for employees and managers.
Ensuring justice in increment, rewards, and effort recognition.
How do you use the model?
Download the template and review the content.
Customize it with name, logo and specific review frequency, criteria and responsibilities.
Share it with Managers for refinement, and communicate it clearly to all employees.
Ensure compliance by getting the performance appraisal policy reviewed by a legal/HR expert.
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FAQs
A grievance policy clearly outlines the process for employees to submit a formal appeal regarding unfair performance reviews. Typically integrated within the performance review policy, detailing timelines, review procedures, and response protocols.
A performance review template should include the following sections:
Employee information (such as name, department and role).
A series of competencies along with a rating scale so the employee can be rated on each one.
A space for reviewer’s comments, points of improvement, and areas where the employee is excelling.
Signatures of both the reviewer and employee.
Below is a format that can be used:
Subject: Mid-Year Performance Review Meeting Invitation
Email Body:
Dear [Employee Name],
I hope this email finds you well.
We're looking forward to our Mid-Year performance review to support your continued growth. Your meeting is scheduled for [Date] at [Time] in [Location].
We will use this time to review your progress, offer feedback, discuss development opportunities, and align on goals for the remainder of the year. Please take some time to prepare any topics you'd like to discuss.
Best regards,
[Your Name]
[Your Position]
Performance reviews can vary in frequency, here are most common types based on frequency and timing:
Annual performance review.
Quarterly performance review.
Year end performance review.
Here are a brief for six performance review examples used to enhance employee performance:
Management by Objectives (MBO): involves managers and employees jointly setting SMART goals and evaluating progress against results, often focusing on tangible goals.
360-Degree Feedback: gathers multi-source feedback (managers, peers, customers, subordinates) to provide a holistic view of an employee's competence and reduce bias.
The Assessment Centre: uses simulations to evaluate current and predict future job performance, offering insights into personality but being time-consuming and costly.
Behaviorally Anchored Rating Scales (BARS): compare performance against specific behavioral examples linked to numerical ratings.
Psychological Appraisals: assess an employee's future potential by analyzing interpersonal skills, cognitive abilities, leadership, and personality through various tests.
The Human-Resource (Cost) Accounting: evaluates performance based on the monetary benefits an employee brings to the company compared to their retention cost.