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Appraisal and training helps motivate staff and so improves staff retention.

Staff appraisal is a yearly performance review between an employee and their line manager.

They reflect on the year just passed, and then:

• identify training needs
• identify areas for improvement
• discuss if specific targets from the previous aprraisal have been met

Where the appraisal shows previous targets have been met, the employee may receive a bonus or another financial reward.

Appraisal methods

• one-to-one
• 360-degree
• peer-to-peer

One-to-one appraisal

This is a regular and formal review of an employee’s performance by their line manager, which normally takes place at least once a year.

One-to-one appraisals involve a review on an employee’s progress towards their targets. Time is taken to set targets for the coming year.

There is an opportunity during this appraisal to identify training needs and future career plans.

360-degree appraisal

This is an evaluation of an employee’s performance that considers feedback and opinions from:

• line managers
• peers
• subordinates
• the employee themselves

Each person asked to take part in a 360-degree appraisal will be given a set of identical questions about the employee. The answers will be used to compare and analyse how the employee is performing. This will help them with self-evaluation and improvement.

A 360-degree appraisal allows for different viewpoints to be considered when reviewing your performance and identifying future training needs.

Peer-to-peer

This type of appraisal excludes an employee’s line manager. Other workers in the same or similar position are asked to provide feedback on different aspects of an employee’s performance.

Benefits of appraisal

• can motivate employees as employers have a chance to acknowledge any good work or improved performance
• training needs can be identified which will lead to a higher standard of work
• targets can be set for employees which will lead to increased motivation and purpose
• good practice can be identified and shared across the organisation
• improved employee relations as managers and employees have time to have a professional discussion and resolve any problems
• opportunity for wage increases and promotions may occur through using appraisals

Costs of appraisals

• can be time consuming to carry out appraisal with all members of staff
• negative appraisals can lead to demotivated staff
• employees may feel under pressure during an appraisal and take on too many development tasks