This article expounds on last month's discussion of the purposes and techniques for managing employee success, starting with additional guidelines for conducting performance appraisals.

Encourage two-way dialogue. An effective performance appraisal requires interactive conversation. Give employees the message that their opinions matter and they will get a fair hearing.

To stimulate discussion, ask open-ended questions such as: "What achievements are you most proud of this year?"; "In your opinion what's the best way to...?"and "Are there obstacles to your success on the job?"

Coach people. When discussing problems, talk empathetically with employees in a way that helps them understand the situation and develop a plan to improve it. Your support will have a long-term impact on them personally and increase their effectiveness in the organization.

Identify and agree on goals for the coming year. The goals should be measurable and/or observable. They should be a stretch but also achievable. Tie these goals in with both: (1) corporate goals, and (2) personal value to the employee. Be prepared to sell your suggestions to staff who may not be receptive to your ideas, and to listen to alternatives proposed by employees.

It makes sense to develop a collaborative plan that works for both of you. Allowing employees to be part of the planning and problem-solving process aids their development and motivates them. People who take part in the process assume ownership of it. They acquire a personal interest in achieving the goals they help to develop.

Summarize the results in writing, including your observations, the employee's comments, and any resulting action plans. Make two copies – one for the employee's file and one for the employee. This documentation becomes a valuable tool for decision-making about such matters as salary increases, training budgets and promotions. And in the event that it becomes necessary to demote or terminate an employee based on inadequate performance, you have the necessary documentation in place to support your decision.

Always keep communication channels open

Remember, in building effective working relationships and staff commitment to the company, formal performance appraisals are no substitute for regular, interactive communication with employees. At PrintLink, when we ask candidates why they want to move from their present place of employment, many cite a lack of communication. Employees express frustration over not knowing how they're doing, how the company is doing, or what changes are occurring – and what they hear is not coming from their supervisors.

Employee recognition programs and incentive-based compensation

After the discipline of structured performance appraisals is over, a strategically timed opportunity exists to recognize and reward employees for the value they've already brought to your company over the past year. The beauty of this timing is that it establishes a results-first sequence – plus, there are practically an infinite number of creative ways to express tangible appreciation to employees within your budget. Here are just a few ideas:

• Monetary bonus
• Framed certificate of acknowledgement
• Gifts bearing the company logo
• Gift certificates for activities or products that include families or significant others
• Use of a reserved parking spot for the "Employee of the Year"
• Tickets to industry-related events
• Perks like a car allowance, cellphone or a hand-held organizer
• Anything else you can think of. Just don't forget to publicize loud and clear to all your employees that you do measure, recognize and reward excellence.

It's never too late

A company can adopt a system of annual performance appraisals any time – even businesses that have gone a number of years without formal and consistent performance reviews. The trick is to plan and conduct the appraisals with professionalism and care, and to be sure to review everyone in the company.

The main thing to remember is that implementing and maintaining effective performance-appraisal and recognition programs yields far greater rewards than the effort and expense consumed by the process, including the following benefits:

• More clearly defined job functions and expectations
• An effective monitoring and measuring system for job performance
• Increased productivity since employees do better, accomplish more and are motivated to work toward making your company more successful
• Results first, if your performance-appraisal system is tied to recognition and incentives
• Improved staff retention because of better employee motivation
• Supervisors and managers are more focused on staff performance
• Increased customer satisfaction as a result of higher service levels from staff
• Potential for improved profits

The list can go on, but to sum it up succinctly: Motivated employees are valuable assets – and performance appraisals help keep them motivated.       

Victoria Gaitskell is a placement specialist with PrintLink, a professional placement firm for the graphic communications industry. T: 1 877 413-2600 E: vgaitskell@printlink.com