PERFORMANCE MANAGEMENT
Bosses avoid the truth in annual appraisals
Annual appraisals are perhaps the most important opportunity available to organisations to reinforce the messages they give to their employees throughout the year. Despite this, recent research conducted by YouGov for Investors in People suggests that many companies are wasting this opportunity.
In fact, nearly half (44%) of employees who receive appraisals don't think their boss is always honest during these sessions. It is unsurprising, then, that almost a third (29%) of employees who receive appraisals believe they are a waste of time, while a fifth (21%) have had an appraisal they felt was unfair.
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The Investors in People research also found that a quarter of employees (23%) who receive appraisals believe their manager sees their annual review purely as a “tick-box” exercise and that one in five (19%) accuse their manager of not even thinking about the appraisal until they are in the room.
Not all doom and gloom
Despite this, a significant minority did have some positive things to say, with 41% of employees who receive appraisals believing them to be a useful assessment of progress.
Despite this, the research also found that very few have faith in their manager taking action on what they talk about. Only a fifth (21%), for example, believe their manager will always act on what is discussed, whereas 20% say their boss rarely or never bothers to follow-up on their concerns.
A third (31%) believe that although their appraisal is helpful, they would prefer to get more regular feedback. A lack of feedback throughout the rest of the year could explain why 40% have been surprised at what they heard in their appraisal.
Other key results
Only 54% of people working in organisations with fewer than 250 employees have a regular annual review. In contrast, 81% of people employed at organisations with more than 250 employees receive annual reviews.
Of those who receive appraisals, the biggest sceptics are those working in the public sector, with 40% believing they are a waste of time.
The people most positive about appraisals work in accountancy and financial services and the charity/NGO sector, where 50% and 52% respectively believe they are a useful assessment of performance. Londoners are also positive - 50% feel they are a good measure of performance.
Among those who receive appraisals, employees in accountancy and financial services (48%) and the public sector (47%) are most likely to think their boss isn't always honest in their annual appraisal. However, the voluntary (57%) and education sectors (57%) are most likely to think their boss is always honest and upfront in appraisals.
Londoners are most likely to ask for a pay rise in their appraisal - 37% of those who receive appraisals have done so, compared with only 18% in the North West.
A final word
“It is encouraging that many people now receive an annual review and the research suggests that they find the feedback useful. But, it is also a concern that some managers may be letting down their employees by failing to give full and frank feedback. Annual reviews can be hugely beneficial to both employer and employee, identifying areas for development as well as ensuring the employee feels motivated, engaged and part of the organisation’s success. However, many of these benefits will be lost if managers avoid difficult issues and hold things back.
Employees are not just after honest, but also regular feedback throughout the year so there aren’t any big surprises when it comes to the annual review. Appraisals should always cover both past performance and objectives, but equally important are discussions of future targets and opportunities. It’s a great chance for managers to make sure their employees feel challenged and valued for the year ahead, rather than unmotivated and without guidance.” - Simon Jones, Acting Chief Executive at Investors in People UK.
Want to know more?
About the survey: Investors in People commissioned YouGov to examine 2,931 UK employees who work in companies with two employees or more during September and October 2007. Questions covered whether staff were given annual appraisals and sought their views on the whole process.
Availability: For further information contact Investors in People on tel: 020 7544 3118 or visit www.investorsinpeople.co.uk.
The Investors in People Standard provides a practical framework for improving business performance and competitiveness through good practice in human resource development. To find out more visit www.investorsinpeople.co.uk.