HR SPECIAL .................QUARTERLY APPRAISALS: THE WAY FORWARD?

QUARTERLY APPRAISALS: THE WAY FORWARD?





The industry is shifting from the traditional "annual" performance appraisals to a more agile "frequent" appraisal process

Talent is the most im portant as set that organisations have in today's world and it is increasingly becoming a competitive advantage. It is also drawing the line between the haves and have nots. The workplace is also undergoing a transformation with the evolving mind sets of the multi-generation workforce that function in the market today. The workforce of today is more open and wants to experiment with their careers to find their “cup of tea“.This is the overdrive era for HR and their ability to adapt to the ever changing needs of the talent market.

Companies are evaluated for their performance every quarter and this phenomenon is also called as “quarter se quarter tak“. Not to be left behind, one of the most critical processes within HR seeing a constant change is performance appraisals. Today, the concept of appraisals is moving away from performance review of goals to a more robust feedback mechanism. The philosophy is to stay agile ­ in line with the digital culture ­ and have quick, iterative sessions to share feedback with employees. There are multiple benefits to this approach: Organisations view this as a great opportunity to evenly space out their recognition programmes to use this as a source of motivation for their employees; This process helps in keeping managers accountable for the business outcomes and not just being compliant and finishing the documentation on performance management; It provides more time to have quality conversations with the employees; Continuous improvement is the key focus rather than meeting a pre-defined distribution curve; Specific to the millennial workforce, it provides an opportunity for the organisations to have quick and effective recognition models to drive required behaviour; Goal setting and performance management shifts from an administrative task to a more result-oriented and forward looking programme for the organisation's success; Identification of key talent and implementing agile developmental and retention focused programmes.

In today's work dynamics, it is critical to have multiple avenues to communicate effectively and manage change. A quarterly appraisal which is more focused on feedback rather than just performance is a great solution to address this situation.A structured process is also preferred to gauge the pulse of the team and have a more realistic approach to talent development and retention.This process also gives a great opportunity for succession planning and talent review at close quarters to monitor progress and make the desired changes.

However, there is a flipside to the quarterly appraisals when not implemented with the right set of objectives. It could lead to collective wastage of organi sational resources, time and reduced motivation levels.Inadequately trained managers could lead to an inefficient implementation of the programme, which might have a negative effect on the overall performance of the employees, network and the organisation alike.

While the process is certainly beneficial to the organisation as a whole, it needs to be monitored at close quarters to retain the essence of the mechanism.Typically branded as a labour intensive, administrative process, quarterly appraisals certainly do increase the workload on leaders and the HR in the organisation.However, with strong leadership orientation and leveraging technology, this process can be made an impactful one. Before implementing a quarterly appraisal programme, HR leaders need to answer the below questions: Can quarterly appraisals help fulfil the organisation's goals?
Can it enable the resolution of key business challenges?
Is the organisation cultureready for a programme like this?
Does the programme add to the complexity that currently exists?
What is the impact of the programme on existing resources, technology, philosophy, etc?
While the approach has the boons and banes that come with every process, the need of the hour is a structure that can be quick to adapt.The quarterly appraisal model is certainly here to stay and needs to be embraced by organisations looking to capitalising on talent potential.

The author is VP and head, HR and communications, ADP India

Vipul Singh

ET21JUL15