Getting the most out of staff appraisals

At Madisons we can advise business owners in the Manchester area on many of the issues you face. Here are some tips for more effective staff appraisals...

Staff appraisals provide a valuable opportunity for you and your employees to work together to achieve future growth - for the employees' personal careers and for the business as a whole.

They give managers a chance to understand - and if necessary reassess - the role of individual members of staff within the company, and they also allow both parties to air any grievances before they become serious issues.

However, without proper attention these meetings can be treated as a matter of routine, and are not managed in such a way as to realise their maximum benefits. To help get the most out of the appraisal process, try the following procedures:

1. A formal structure
Prepare a standard form on which you can set out an overview of each employee's role. This should include a statement of their main responsibilities and achievements, as well as constructive suggestions for future development. You can use the form as the basis of the appraisal meeting.
2. Put staff at ease
While the interview should have a formal setting, make it clear that the objective is not simply to judge past performance. Highlight the employee's positive attributes, and make it clear that you are keen to help them to develop their skills further.
3. Invite feedback
Giving staff the chance to air their views and ideas may help to uncover any issues which may not be addressed in general staff meetings, and can enable you to identify potential problems in the early stages.
4. Offer training opportunities
Your staff are one of your company's most valuable assets, and by investing in them you will also be investing in your company. Offering training, a salary review, or other benefits will also make staff feel valued, thereby increasing loyalty and improving performance.
5. Draw up an agreement
Once you have agreed on the way forward, you should set it in writing. Keep a record on file and give a copy to the employee. Make sure the comments are accurate and fair, in case of any future disputes.
6. Follow up the points raised
Having agreed on an appropriate plan of action, you should schedule a series of follow-up meetings, perhaps six-monthly or annually, in which you can assess whether the targets set in previous appraisals have been reached.

If you are in the Manchester area and are looking for support and advice from a team of professional accountants and business advisers, contact Madisons.

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Madisons is a trading name of Madison Business Services Limited Registered office: Bushbury House, 435 Wilmslow Road, Withington, Manchester, M20 4AF. Company Number: 03800186, VAT Registration Number: 741 1182 67 Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our Audit Registration can be viewed at www.auditregister.org.uk and www.cro.ie/auditors for Ireland under reference number C009016107.
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