Bad employee appraisals cost UK economy over 2 billion
Research from Talent Q, a people assessment company that helps employers recruit and manage talent, has shown that many managers are merely 'going through the motions' when it comes to appraisals. Out of a total UK workforce of 29.36 million, only 58 per cent of these receive a formal appraisal, of which many are conducted badly and fail to achieve their objective of reviewing performance.
As a result, employees' productivity and the customer service they deliver is impacted noticeably. Talent Q's research found that good appraisals, followed by effective development planning, were related to 2.7 per cent higher levels of productivity and an 11 per cent increase in quality of service. However, where appraisals are conducted poorly, unsurprisingly these benefits are not achieved. Given the number of bad appraisals, this represents a potential loss to the UK economy of 2.29 billion.
In organisations that take the management of their people, appraisals will often have been well thought out and structured by the human resources department. However, appraisals are still implemented poorly for many reasons, including:
* Managers viewing appraisal as a 'chore' rather than a useful activity to manage the performance of their people * Due to a lack of commitment to the process, managers do not implement appraisal thoroughly across all of their people * The objectives of the appraisal not clear or appropriate, either for the company or the employee * Managers not preparing in advance or allowing time for the employee to prepare * Appraisal discussions are one-sided, with the employee unable to contribute their point of view * Managers fudging results either to make themselves look good to their own senior managers, or to 'be kind' to the employee
Alan Bourne, director of Talent Q, said: "There's often a huge sigh when appraisal time comes, however it is actually a well-proven management tool which research has consistently identified as a key part of an effective HR system. Many organisations use appraisals badly and our research indicates that those that do so are wasting time rather than achieving the intended benefits.
Appraisal systems are often well-designed by the HR function but fall down when handed over to be implemented by managers who have not been engaged and don't buy in to the process. A bad appraisal does nothing for morale or productivity, and works against the goals of the organisation.
Clearly HR professionals need to work more closely with their operational colleagues to ensure well meaning policies actually get implemented effectively in practice. The simple message to managers is that if you don't know how to appraise effectively, consider the business benefits of doing so and get appropriate training. Doing it badly is a waste of your time and counter-productive within your team.
About the Author:
Talent Q enables employers to recruit and manage talent through sophisticated assessment of the personality and intelligence of its people. Visit us for more information on psychometric testing
and assesment for recruitment
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