A good performance appraisal supports the business in several ways:
1) Ensures direction and implementation
The conversation links the employee's work to the organization's goals, priorities, and strategy. It helps to clearly clarify expectations between the manager and employee, so that the manager can both prioritize and support more effectively.
2) Reduces risk
The conversation can reveal role ambiguity, workload, collaboration challenges and working environment/HSE conditions, which makes it possible to take action early. Manager and employee can strengthen the relationship, which contributes to increased trust and security.
3) Supports competency planning and internal mobility
When you systematically map competence and development needs, it becomes easier to identify competence gaps, discuss development initiatives and assess possible internal role or career moves.
Performance appraisals are not directly required by law, but they support employers' obligations to work systematically with HSE and the working environment, and with facilitation, participation and development. From January 1 this year, the requirements for the psychosocial working environment became clearer, and the performance appraisal is one of the tools that can document how you work with the psychosocial factors.
The performance appraisal complements the ongoing, daily dialogue that you as a manager have with your employees about more operational and short-term needs. The conversation stands out by being planned and prepared by both of you, it follows a structure, and it is confidential. It should ensure time and peace, so that you can highlight and discuss important topics for employee motivation and development.
How to improve the quality of your conversations
Performance appraisals are best when they are anchored in a clear process, and when both the manager and employee prepare.
Leader's preparations:
- Set the framework: Purpose, time, place and duration (often 60–90 minutes).
- Send the invitation with agenda and template well in advance (1–2 weeks in advance), and ask the employee to prepare.
- Prepare concrete observations and examples: What works well, and what could (from your perspective) be improved.
- Check facts and context: Goals and priorities from the previous period, position/role description, changes in framework conditions or priorities, and other relevant events since the last time.
- Reflect on your expectations: both for professional deliverables and for behavior and manners, and how you can best support the employee.
Many leaders know what should be done, but lack structure, templates and confidence in implementation.
BUHR helps businesses establish performance reviews that actually work in practice. Talk to us about how you can make this simple and effective.
The performance appraisal should be mutually binding.
The conversation only creates value when you follow up on the plans and measures you agreed upon. Both managers and employees must contribute to ensuring that the goals set are followed up and that the development plan is realized.
A semi-annual follow-up meeting for calibration of the targets may be found useful. When there is a need for role changes, in positions with high workloads or for roles/teams that work hybrid/remotely, the frequency of the conversations should be increased.
Confidentiality and documentation
Performance appraisals should be documented and treated with discretion. At the same time, they are not “secret” if matters arise that the manager must follow up on, for example related to the working environment/HSE, harassment, whistleblowing, or serious matters such as violations of the law or security breaches.
How can BUHR help you?
Many businesses want good performance reviews, but lack a practical framework that provides consistent quality across managers and departments. BUHR assists with:
- Design and improvement of process (annual wheel, anchoring and follow-up)
- Templates and tools (templates for agenda, documentation and follow-up plan)
- Training for leaders (brief, practical and relevant, providing security in role and responsibility)
- Advice along the way (guidance and support in demanding cases, clarity around confidentiality and proper escalation)
The goal is for your performance reviews to become a real tool for management, development and well-being – and through that contribute to better management in practice.
Do you want performance reviews that provide better management, clearer responsibility and increased well-being, not just something that “should be done”?
Contact BUHR for support with processes, templates and leadership training, tailored to your organization and everyday life.
