Reimagining year-end performance appraisals: Turning this often dreaded process into a fruitful and productive one

October 31, 2024 Wanjiku Kinuthia

The end of the year is a time to celebrate your hard work and achievements. However, one process frequently fills many with dread: the annual performance review. For some, it feels reminiscent of the days when they received a report card from school. During these reviews, team members often find out if they’ll receive a raise, a promotion, or a transfer to a different department - or, in some cases, face constructive feedback or consequences for past behavior.

In this Reader, our Head of People and Culture, James Kiogora, outlines clear, actionable steps to transform year-end reviews into an opportunity for open, engaging and productive conversations rather than a scary experience many would rather avoid.

Prepare, prepare, prepare →

Make these types of conversations a regular thing ✔

Like any essential organizational process, you - as a leader working closely with your team - must ensure thorough preparation. Ideally, these types of conversations should happen throughout the year during regular one-on-one meetings as well as quarterly reviews. Basically, you want to avoid year-end surprises. The year-end conversation, or performance review, should be a culmination of the discussions you’ve been having with your team all year. However, if those conversations haven’t happened, it doesn’t mean you still can’t make the best of the year-end review.

Throughout the year, focus on building trust with your team ✔

Building trust with your team is also absolutely key. This means that your team will know you’re coming from a point of honesty, objectivity, and good intentions, especially while giving constructive feedback, which is often the hardest to do. If your team knows that you are sharing tough feedback with them in a genuine effort to help them become even better at what they do, the feedback will be well received.

Give your team time to prepare and reflect ✔

Avoid announcing reviews out of the blue. Instead, give your team at least two weeks' notice to prepare. This advance notice lets them reflect individually on their performance before the conversation, leading to a more meaningful and productive review.

Don’t try to do it alone ✔

We’ve seen organizations where the Executive Director feels compelled to review and evaluate each individual on the team. While this may work for a small team of, say, 5–10 people, it’s neither time-effective nor practical for a larger team. In such cases, the ED should share this responsibility with the leadership team and ensure they are properly prepared to handle the process effectively.

Use a tool to make the process more effective ✔

There are many tools available to assist with performance appraisals. These tools can streamline the process by providing templates for setting goals, tracking progress, and gathering feedback. Using a structured tool ensures that appraisals are consistent, objective, and aligned with the organization’s goals. Choose one that suits your team’s needs, and customize it to reflect the specific skills and behaviors you want to encourage. A well-chosen tool not only makes the process more efficient but also helps create a more meaningful and transparent review experience for everyone involved.

Hold the appraisal →

Create a safe space for open dialogue: Think of the review as a two-way conversation, not a top-down assessment. Showcase your ‘vulnerability’ by acknowledging areas where you, as the leader, could improve. Ask your team for feedback on your own leadership and discuss how you can better support them moving forward. Establish a safe, collaborative space for everyone to be heard and valued.

Ensure objectivity and balance: Center your appraisals on the specific goals set at the start of the year. Try your best to remain objective and be aware of any biases you may have. If a team member has been struggling, consider external factors that may have impacted their performance. Objective reviews help maintain fairness, reinforcing trust within your team.

Take a more holistic approach to positive feedback 💡

Celebrate achievements and contributions ✔

Recognizing accomplishments is crucial, whether it’s for individual contributions or team-wide success. Highlight areas where team members have exceeded their roles, supported colleagues, or introduced ideas that improved team efficiency. Acknowledgement strengthens morale and reinforces a culture of appreciation and motivation. It also helps someone recognize their strengths and ensures they’ll tap into those going forward.

Recognize contributions beyond job descriptions ✔

Celebrate extra efforts and innovation: Take time to acknowledge contributions that may not fall within formal goals but are invaluable to team cohesion and success. Highlight instances where team members have shown initiative, supported colleagues or brought innovative ideas that saved time and resources or improved your work. By recognizing these “extra mile” efforts, you reinforce a culture where initiative and teamwork are highly valued.
Appreciate people skills and team spirit: We all have that team member that people feel comfortable reaching out to during moments of turmoil - the one who provides a listening ear or a space of no judgement. Soft skills such as conflict resolution, approachability, and active listening contribute immensely to a positive work environment - and often, the people who play these roles go unrecognized. Acknowledging these contributions reinforces a well-rounded view of performance and nurtures a positive culture.

Make your feedback specific ✔

Feedback shouldn’t be generic - point out specific examples that refer to your feedback. For example, instead of saying, “Peter, you’ve done great this year.” What’s more helpful for Peter could be, “I really recognize how well you’ve run our coexistence efforts this year. I’m particularly impressed with the handling of conflict cases and the improvement in communications with the communities. This has really contributed to our goals this year.”

This applies to all types of feedback.

Consider the 360-degree feedback approach ✔

The 360-degree approach focuses on incorporating feedback from various colleagues - beyond the immediate supervisor - to give a full picture of each team member’s contributions. This helps to shape the appraisal on both what they achieve and how they interact with others, embodying the organization’s values and culture. Prepare your team for the feedback process, using a simple template to guide responses and ensure constructive thoughts from the team.

Address performance challenges with a supportive approach

Offer constructive feedback with compassion and objectivity ✔

Many people dread constructive (negative) feedback. Frankly, it’s uncomfortable for most people to give, and even more daunting to receive. However, when delivered thoughtfully, with empathy and objectivity, constructive feedback can be a powerful way to help team members recognize areas for improvement. It highlights blind spots and, when approached as an opportunity, can significantly enhance an individual’s skills, talents, and behaviors.

Constructive feedback should always be given with care. Remember to consider any challenging circumstances your team members may have faced. When approached thoughtfully, even tough conversations can be productive and motivating.

One of the most challenging aspects of giving constructive feedback can be when it’s related to behavior rather than work-related performance. A team member may meet their performance goals for the year but exhibit less-than-ideal behaviors at work, such as signs of alcohol misuse, difficulty collaborating with others, and more. When addressing these issues, it’s essential to keep a few key principles in mind:

Focus on the behavior, not the person: The feedback should not be an attack on the individual but an effort to address specific negative behaviors that have emerged.
Offer support for improvement: Use this as an opportunity to ask how you, as a leader, can better support the individual’s improvement.
Recognize the link between behavior and performance: Behavioral patterns can significantly impact performance and the work environment, and as a leader, you can help make this connection to show the value of improving behaviors.

Getting a Performance Improvement Plan (PIP) right ✔

When a team member requires additional support to meet expectations, a performance improvement plan can be a powerful tool - when handled with clear goals and empathy.

Have a reasonable and targeted timeline for the PIP. I don’t recommend a PIP plan longer than 3 months; this should be a good enough timeline to provide a structure for improvement and see progress.
Clarity is everything. Be very clear about why you're putting this team member on this plan to avoid any misunderstandings.
Set SMART goals: Goals within a PIP should be clear, measurable, and achievable. Create milestones and regular check-in points.
Provide necessary resources: Offer targeted support during the PIP period. This might include mentorship, training, or even external help to overcome major hurdles. Define what success will look like and clarify that the PIP is a collaborative path towards improvement.

Set goals for continued development →

Explore growth opportunities both internally and externally ✔

Use the appraisal to discuss the next steps for professional growth. This doesn’t have to be a promotion or cost money. It could also include lateral growth, where team members can take on new responsibilities or participate in projects outside their typical roles. This approach builds versatility and encourages skill development, even in roles or smaller organizations where upward mobility may be limited.

If you have a budget available for professional development, it’s great to encourage team members to gain new skills that not only build their capacity to deliver but also boost their morale.

Encourage coaching and mentoring ✔

For team members looking to develop specific skills or expand their knowledge, connecting them with a coach or mentor can be valuable. And these can be more experienced team members within your team; you don’t always need external support.

Explore how roles can evolve ✔

Explore how roles can evolve to meet individual, team and organizational goals. Evolve the roles to match an individual’s strengths. Do they love public speaking? Give them more opportunities to speak about your organization at conservation conferences, for example.

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