A performance appraisal process gives you a valuable opportunity to have meaningful conversations with staff about their job performance, and relate this to your firm’s broader goals. Alisdair Barr from Grad Mentor outlines his best practice process.

Cast aside any traditional views you have of performance appraisal—this is not just about rating staff performance or a one-way communication process. Nor is this about ambiguous goals or general benchmark measures.

You want any performance appraisal to provide real benefit to your employee and your firm. The only way to ensure this is to design a process that can be tailored to each individual—based on a good job description that includes a clear job purpose, behavioral competencies and values, and key result areas.

Who should complete the performance appraisal?

In most cases, an employee’s direct supervisor or manager should carry out the performance appraisal process. I’ve seen supervisor assessment and employee self-evaluation both work well together.

You may also wish to look more broadly and involve clients, coworkers, subordinates, suppliers, computers (electronic review systems) and self-evaluation during the process.

How should a performance appraisal run?

A performance appraisal should run every six to twelve months. Frequent reviews provide greater opportunity for discussion and control. You want your staff to know exactly what is expected of them and work towards meeting their goals through meaningful work.

Nothing should come as a surprise to anyone involved, and the focus should remain around helping your firm more effectively reach business goals.

Here are some general steps to follow:

• Select a mutually convenient time to meet

• Allow a reasonable amount of time for discussion, remembering that this is a two-way conversation.

• Start with a focus on meeting your firm goals and outlining how key staff are to meeting goals

• Share some stated firm goals and progress towards them

• Continue with something positive about the overall business performance and how the individual’s performance relates to this

• Ask open-ended questions, allowing staff to open up and talk freely

• Listen