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How Our Performance Appraisal Program Works An Employee Communication Presentation
©SHRM Introduction Performance appraisals, reviews and evaluations are all terms used to describe a process for documenting and communicating employees’ performance. Although many managers and employees dread performance appraisals as the yearly “report card”, it is important for both employees and managers to understand the role these appraisals play in documenting performance issues and upholding the company’s performance management philosophy. This sample presentation is intended for presentation to all employees. It is designed to be presented by an individual who has knowledge of the employer’s performance management and appraisal programs. This is a sample presentation that must be customized to include and match the employer’s own program and policy.
©SHRM Agenda During this meeting, we will review: Our performance management philosophy and policy. Our performance appraisal process. Our performance appraisal forms. Employee self-evaluations. How your performance appraisal affects your pay.
©SHRM Our Performance Management Philosophy and Policy (Note to presenter: Customize for your company. Distribute copies of your company’s policy and procedures.) Here at [insert Company Name], we believe our employees are the key to our business success. We strive to hire, develop and keep the best employees. In order to remain a leader in our industry, we encourage, support and compensate employees based on our philosophy of recognizing and rewarding exceptional performance. We believe that performance management is an ongoing and daily process, not just an annual event. We require managers and employees to conduct a formal annual performance review, documenting and highlighting the previous year’s accomplishments through the use of the company performance appraisal process.
©SHRM Our Performance Appraisal Process (Note to presenter: Customize for your company.) Annually, business and individual employee performance goals are developed with input from employees, customers and our Board of Directors. This is an interactive process that starts in September and is completed in December of each year. On a monthly basis, supervisors are responsible for updating employees on the status of our business and their individual performance goals. Measures of these performance goals for the previous year are reviewed with employees starting the week of January 2, the beginning of our business year. They must be completed before the end of January.
©SHRM Our Performance Appraisal Process (cont’d) (Note to presenter: Customize for your company.) Employees and managers provide informal feedback to Human Resources semi-annually on the accomplishment of their goals. Supervisors and employees may seek assistance from HR regarding performance, conduct or attendance issues. Training, performance improvement plans or disciplinary action may result from information obtained during the performance review process.
©SHRM 2008 Our Performance Appraisal Forms The annual performance appraisal forms are designed to evaluate performance against goals and expectations using a rating scale from one (1) to five (5). A rating of 1 indicates unsatisfactory performance. A rating of 5 indicates performance that consistently exceeds established goals. The form also has room for comments. Supervisors must provide a narrative justification for ratings of 1, 2 or 5. Supporting documentation with examples must be included in the narrative. Employees who have unsatisfactory performance at the semi- yearly review will receive a performance improvement plan outlining appropriate training, coaching or disciplinary action. 7
©SHRM Our Performance Appraisal Forms (cont’d) Performance will be monitored with the expectation that it will improve and be sustained before the annual review. Employees will be asked to sign the form acknowledging that they have reviewed the contents with their manager and were given a copy. Employees who refuse to sign the form will be asked to sign a separate form outlining their reasons for not wanting to sign their performance appraisal form. Copies of the completed forms will be distributed to them. HR will maintain the originals of all performance appraisal forms and documentation.
©SHRM 2008 Questions? Comments? 9
©SHRM Employee Self-Evaluations (Note to presenter: Customize for your company.) Our company’s performance management philosophy emphasizes the important role employees play in identifying and setting company and individual performance goals and standards. Employees are asked to evaluate their individual performance and contributions to our company’s goals. The company recognizes that not all employees want to participate in this process of self-evaluation and documentation of their accomplishments. Therefore, completion of the self-evaluation section of the form is voluntary.
©SHRM How Your Performance Appraisal Affects Your Pay (Note to presenter: Customize for your company.) Our company links annual pay increases to individual contributions toward the success of our business. To be considered for a pay increase, employees must receive an overall rating of 3, 4 or 5 on their annual performance appraisals. By January 31 of the following (next) year, supervisors will complete the annual performance appraisals for the previous year. Employees will see pay increases reflected in their paychecks the second payday in February.
©SHRM 2008 Questions? Comments? 12
©SHRM Summary The company believes in employee participation when setting performance goals and standards. Communication about company and individual performance is an ongoing process; however, once a year the company sets aside time to formalize this communication through its performance appraisal program. The annual performance appraisal provides an opportunity to formally review, document and recognize the previous year’s accomplishments and each employee’s performance. Annual pay increases are linked to employee performance documented in the annual employee performance appraisals.
©SHRM 2008 Meeting Evaluation Please be sure to complete and leave the evaluation sheet you received with your handouts. Thank you for your attention and interest! 14
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