A fair appraisal uses one set of steps and one rating guide for everyone. Staff then trust the result. This post gives you a six-step appraisal cycle, a rating guide and a meeting checklist.
Learn these skills in the course Human Resources (BL-HR), module 3.
Who This Is For
HR executives who run the year-end appraisal, and supervisors who rate their own staff. Also managers who receive complaints about unfair ratings.
The Six-Step Appraisal Cycle
- Set three to five goals with each employee at the start of the year. Write them down.
- Agree how you will measure each goal: a number, a date or a quality standard.
- Hold a short review every quarter. Note the progress and any help the employee needs.
- Before the year-end meeting, ask the employee to rate their own goals.
- Hold the year-end meeting with the checklist below. Use the rating guide for each goal.
- Agree the result, the development action and the goals for next year. Both sign the form.
The Rating Guide
Use the same guide for all staff. Each rating needs a fact, not a feeling.
| Rating | Meaning | Example of the Evidence |
|---|---|---|
| 5 Far above | Goal exceeded, and the employee helped others reach theirs | Sales 130% of target; trained two new staff |
| 4 Above | Goal exceeded | Project finished two weeks early |
| 3 Meets | Goal reached as agreed | All monthly reports on time |
| 2 Below | Goal partly reached | Three of five audits done |
| 1 Far below | Goal not reached, without a known reason | Customer complaints doubled |
The Appraisal Meeting Checklist
- Book 45 minutes in a quiet room. Send the goals and the self-rating in advance.
- Start with what went well. Use facts from the quarterly reviews.
- Discuss each goal and its rating. Listen to the reason for each gap.
- Agree one development action, for example a course or a project.
- Write the result and the next goals before the meeting ends.
Example: A Logistics Company
Take a logistics company where each manager used a different form. Staff in one depot got higher ratings every year. HR made one form and one rating guide for all depots. Managers wrote one fact for each rating. The next year, complaints about unfair ratings dropped.
What Good Looks Like
- Each employee has three to five measurable goals.
- All managers use the same rating guide.
- Each rating has one fact as evidence.
- Each meeting ends with a result, an action and next year’s goals.
Common Mistakes to Avoid
- Rating from memory of the last month only. Use notes from all four quarters.
- Giving everyone a 3 to avoid hard talks. Good staff then lose interest.
- Surprising the employee at year end. Discuss problems at the quarterly review.
- Ending the meeting without next year’s goals. Write them before you leave the room.
Try It This Week
Take the goals of one employee for this year. Check that each goal has a number, a date or a standard. Rewrite any goal that has none.
Frequently Asked Questions
How many goals should one employee have?
Three to five goals. More goals make the review hard and less fair.
Where does the course teach this?
Module 3 of Human Resources (BL-HR) includes a workshop on performance appraisal processes.
Next Step
Read the full outline of Human Resources (BL-HR). All class dates are on the Training Calendar. For a group from your company, get a quote for in-house training. More HR Work Tips are in the skill area HR. Read also:
