Don’t Let This Annual Appraisal Ruin Your Organizational Goals

The time has come for a decision to be made. A decision that can make or break your organization. A decision that is going to impact the productivity of your team. Yes, it is time for the “Annual Appraisal Process”. A process where managers ‘rate’ the performance of their  employees. A process where employers decide how much their employees should earn in the current financial year.

Believe it or not, most of the employees anticipate these appraisals with great apprehension or months in advance. Even employers feel uncomfortable while going through these appraisal process.  And whether or not they are willing to admit it, most of them know that they are not going to experience any tangible benefits at the end of this process.

Few Facts:
A People IQ survey found that 87 percent of both managers and employees believed annual reviews were ineffective and not useful.
According to a Gallup study published in 2017, only 14% of employees feel motivated after a performance review. Additionally, only about one-third of employees feel encouraged and involved in their overall career development.
A TriNet study of over 1,000 young professionals exiting their annual performance reviews found that half of the respondents felt they couldn’t do anything right.

Despite the common belief that the feedback employees receive during their performance appraisal provides them with learning opportunities and some invaluable insights into opportunities for growth, In many cases, employees receive negative feedback(or at least they feel so) and experience fallout as a result.

In many cases, they silently start looking out for their next job – which is the least devastating thing for an organization as an aftermath of Appraisal. In some cases, these demotivated employees waste their time and energy thinking about how bad this entire appraisal process went for them. Certainly, these kinds of behaviors produce results counter to organizational goals. However, the most dangerous threat for an organization is when one of its employees turns into a rebel.

Let me share a story with you. I will not use the name of the organization for obvious reasons. They were in a growing spree, and the expectations they had set for themselves was fairly high, but achievable. Since they were trying to “Structurize” the organizational policies, they decided to conduct their first “formal annual appraisal process”. People were excited and the managers were committed to making it a success. However, things didn’t work out so well. One of the employees felt offended by the scores and increment he had received. Being one of the most talented executives, he had a great fan following for him in his team. People used to look up to him for guidance. He used that so-called stardom to influence his entire team, and within an hour, most of the people in his team rejected the appraisal letter and started gathering in front of the HR. The HR and the Manager tried their best to calm the frantic crowd. However, things went from bad to worse. Finally, as a preventive measure, the top management decided to fire 9 of them. That was one of the most traumatic years in the history of that organization. None of their teams could meet their goals.

However, there was one team who managed to break all it’s past record and that was the Technology Team (3 cheers to me and my team). If you want to know how we managed it, you can drop me a mail on [email protected]. I read all my mails and I will definitely revert back. I am also attaching a few links at the end of this article. You can go through them and learn how to efficiently manage the appraisal process.

In the end, the growth of any organization relies majorly on its employees and you should not take a chance to lose or demotivate your best employees. To handle such situations, you ought to seek the help of the experts. If you are in India, I would love to visit your organization and help you keep your employees engaged and boost their productivity quotient. I am offering a flat 50% discount for the first 10 organizations if you book my calendar before the 15th of April. Make the most use of it and get in touch with me now. Remember, prevention is always better than cure.

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