An annual performance review should be part of a wider goal-setting program tailored to individual employees. The review process includes encouraging self-assessment, providing an overview of the format, preparing well with feedback from colleagues, scheduling adequate time, comparing achievements to goals with examples, reviewing the job description, balancing positive and negative feedback, and agreeing on new goals. Done correctly, annual reviews can help motivate employees and develop skills.

1. Annual performance appraisal report
An annual review should never be a standalone process it should always form part of
a wider goal setting program that includes the use of personal development plans
tailored to individual employee needs and organisational objectives. This article offers
some practical tips for conducting annual reviews
Encourage Employee self assessment
Ask employees to complete an in house evaluation form that encourages them to think
about what they have achieved. This should be completed every three months rather
than just before the annual review as the employee will be able to recall specific
examples of achievements more easily and it will also communicate the importance of
self evaluation within the organisation. Self evaluation also provides the opportunity
for the employee to reflect on their practice which will enable them to identify areas
for improvement themselves without managers even having to point them out.
Provide an overview of the annual review format.
It is essential that the employee knows what to expect from their review meeting so
take time to provide an overview well in advance. Most annual reviews take the
following format:
- Introductions and purpose of review
- Discussion of the employee self evaluation form
- Feedback form employee about progress made against agreed goals
- Future goal setting
- Time for further questions from the employee
- Close
Preparation
Ensure that you prepare well for the review. Spend time familiarising yourself with
job descriptions and gather feedback from the employee's colleagues and
organisational statistics to assess progress.
Evidence your feedback, don't just rely on your own experience of the employee. The
more sources consulted, the better the quality of feedback to the employee will be and
the more beneficial for planning future objectives.
Schedule adequate time for feedback

2. Don't rush annual review feedback. Agree a time an date with the employee in
advance, don't just spring it on them. This will allow adequate time for both the
employee and yourself to prepare.
Compare Achievements against agreed goals
The whole purpose of an annual review is to evaluate how an employee has
performed against agreed goals so it is critical that these have been recorded
accurately in the first instance. Go through each goal individually and discuss with the
employee how they feel they have achieved and ask for specific work based examples
to evidence these claims.
For example if a previous goal has been to improve customer service skills the
employee should be able to recount specific occasions where this has improved and
cite instances where colleagues have witnessed this in action. Offering the employee
time to record this information on a self evaluation form provides a good basis for
discussion.
Review the job description
Job descriptions are important documents because they provide the evidence which
informs salary levels. During the annual review it may become evident that the job
description needs updating or changing because employees are involved in a far wider
range of activities than expected. It also helps managers to identify where staff need
to relinquish activities that don't form part of their job description.
Get the feedback balance right
The best approach for dealing with feedback to an employee is to give three pieces of
positive feedback for every one piece of negative feedback. This will build confidence
within the employee but also highlight areas for improvement. Also, never finish with
negative feedback always leave the meeting on a positive note. Adopting this
approach will ensure that annual reviews do not fill employees with dread.
Agree new goals
An annual review is a time to set new goals based on previous performance. It also
offers scope for employees to develop skills in new areas and maintains motivation
levels. Failing to agree new goals will lead to demotivated staff, as they will have
nothing to work towards.
Summary
Annual reviews are an important tool in keeping employees motivated and developing
individual skills and abilities. Remember that annual reviews are not a stand alone
process but need to form part of overall business planning.
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