6 Common Errors in Performance Appraisal

Performance Appraisal, Performance Review or Performance Evaluation - no matter how you package these words, they are essential tools in managing employee performance. Yet, they are one of the most difficult to get right.

When conducted well, appraisals can motivate employees and boost their enthusiasm for the job, which can help the company and employees meet their goals. But if done incorrectly, it can lower morale or even result in the employee quitting the job!

Throughout years of recruitment consultancy services provided to various HR and SME managers in Singapore, below are six most common performance appraisal errors we have observed. Find out how they happen and what can be done to avoid them to get the most out of this evaluation exercise.

Stereotyping

Some of the common negative stereotypes found in the workplace are related to race, gender, age, sexuality, religion, etc. These negative stereotypes are often associated with preconceived judgements or personal values that can strongly influence the appraising process and outcomes.

Each employee should be assessed objectively based on the established performance standards and their performance output instead of physical appearances or religion.

Halo / Horn Effect

Generalised an employee’s performance based on a single trait or attribute is one of the most common errors made by many supervisors.

The Halo effect happens when a supervisor overly focuses on an employee’s outstanding performance or trait instead of holistically appraising an employee’s overall performance and outputs. On the other hand, Horn Effect is the tendency of a supervisor to underrate an employee due to an unfavourable trait and overlook the rest positive performances or outputs. 

To avoid such biases, the supervisor has to consciously keep a record of the tasks, achievements and outputs of the employee.

Recency Error

As one of the most common errors during the appraising process, recency error happens when a supervisor appraises an employee based on recent performance instead of the entire period from the previous appraisal. This error can lead to inaccurate and unfair assessments. 

In addition to that, it can be ineffective to have positive impacts on an employee’s performance or output when feedback is only provided half-yearly or during an annual performance appraisal.

To circumvent this, managers should keep track and provide feedback on the employee’s performance at regular intervals instead of only doing it during the appraisal process.

Favouritism

Favouritism or partiality can make an assessment lacks objectivity. This can undermine the performance and relationship between the employee and the employer.

Performance appraisals should be impartial and based on performance facts. However, supervisors may consciously or subconsciously be biased towards a particular employee. Such prejudice can result in overlooking the mistakes of a favoured employee or giving negative reviews due to soured relationships from conflicts unrelated to work. 

Not Recognising Achievements

Over the 2 years of Covid-19 challenges, many employees have come to view job satisfaction as well as mental and emotional well-being as some of the most essential factors in their work. Employees who feel that their work is not valued tend to become disengaged and lose enthusiasm for their work.

With hybrid work arrangements being the norm for many organisations and face-to-face interactions not as frequent as before, performance appraisals are good opportunities to appreciate employees’ accomplishments and strengths. Such constructive feedback will improve not only their performance but also strengthen their engagement.

Not Setting Measurable Goals, Not following-up

A performance appraisal must never end with just a letter grade or score. This won’t help the employee or the company move forward or produce visible and measurable results.

Instead, work with each employee in setting a clear list of realistic goals for the coming year or months, supported by the data generated during the evaluation. Check in with the employee regularly to make sure milestones are being met. Ensure there are measurable ways to track process and status throughout the year. If rewards were promised during the review, ensure it is delivered in a timely manner. 

Remember, a performance review is an overview of past performance where the supervisor and subordinate evaluate job performance, productivity, accomplishments, strengths and weaknesses against a pre-determined set of criteria.

When sufficient thought is given, the evaluation can set the stage for increased performance and employee engagement. It can also help the manager better plan the employees’ career paths within the organisation. But without efficient follow-through, the appraisal would have been a wasted effort, with the manager wondering why there were no measurable results. 

If you have queries on how you can better manage your talent pool or are looking at ways to get improved results from your performance appraisals, you may reach out to Achieve Group, a Recruitment Consultancy agency with decades of consulting experience providing professional advice concerning search and placement and outplacement matters for skilled workers or specialists.