09 ppt performance appraisail final

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How Our Performance Appraisal Program Works  An Employee Communication Presentation

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How Our Performance Appraisal Program Works  An Employee Communication Presentation

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 © SHRM 2008 2

Introduction

Performance appraisals, reviews and evaluations are all terms

used to describe a process for documenting and

communicating employees’ performance. Although many

managers and employees dread performance appraisals as

the yearly “report card”, it is important for both employees and

managers to understand the role these appraisals play indocumenting performance issues and upholding the company’s

performance management philosophy.

This sample presentation is intended for presentation to all

employees. It is designed to be presented by an individual who

has knowledge of the employer’s performance managementand appraisal programs. This is a sample presentation that

must be customized to include and match the employer’s own

program and policy.

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 © SHRM 2008 3

 Agenda

During this meeting, we will review:

• Our performance management philosophy and policy.

• Our performance appraisal process.• Our performance appraisal forms.

• Employee self-evaluations.

• How your performance appraisal affects your pay.

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Our Performance Management

Philosophy and Policy

(Note to presenter : Customize for your comp any. Distr ibute copies

of your company’s policy and procedures.) 

• Here at [insert Company Name], we believe our employees are

the key to our business success. We strive to hire, develop and

keep the best employees.

• In order to remain a leader in our industry, we encourage,support and compensate employees based on our philosophy

of recognizing and rewarding exceptional performance.

• We believe that performance management is an ongoing and

daily process, not just an annual event.

• We require managers and employees to conduct a formal

annual performance review, documenting and highlighting the

previous year’s accomplishments through the use of the

company performance appraisal process. 

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 © SHRM 2008 5

Our Performance Appraisal Process

(Note to presenter : Customize for you r com pany.)

•  Annually, business and individual employee

performance goals are developed with input from

employees, customers and our Board of Directors.

This is an interactive process that starts in September

and is completed in December of each year. 

• On a monthly basis, supervisors are responsible for

updating employees on the status of our business and

their individual performance goals.

• Measures of these performance goals for the previous

year are reviewed with employees starting the week

of January 2, the beginning of our business year.They must be completed before the end of January.

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 © SHRM 2008 6

Our Performance Appraisal Process (cont’d) 

(Note to presenter : Custom ize for you r com pany.)  

• Employees and managers provide informal feedback

to Human Resources semi-annually on the

accomplishment of their goals.

• Supervisors and employees may seek assistance

from HR regarding performance, conduct or

attendance issues.

• Training, performance improvement plans or

disciplinary action may result from information

obtained during the performance review process.

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Our Performance Appraisal Forms

• The annual performance appraisal forms are designed to

evaluate performance against goals and expectations using a

rating scale from one (1) to five (5).

•  A rating of 1 indicates unsatisfactory performance. A rating of 5

indicates performance that consistently exceeds established

goals. The form also has room for comments.• Supervisors must provide a narrative justification for ratings of

1, 2 or 5. Supporting documentation with examples must be

included in the narrative.

• Employees who have unsatisfactory performance at the semi-

yearly review will receive a performance improvement plan

outlining appropriate training, coaching or disciplinary action.

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Our Performance Appraisal

Forms (cont’d) 

• Performance will be monitored with the expectation that it

will improve and be sustained before the annual review.

• Employees will be asked to sign the form acknowledging

that they have reviewed the contents with their manager

and were given a copy.• Employees who refuse to sign the form will be asked to

sign a separate form outlining their reasons for not

wanting to sign their performance appraisal form. Copies

of the completed forms will be distributed to them.

• HR will maintain the originals of all performance appraisalforms and documentation.

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Questions? Comments?

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Employee Self-Evaluations

(Note to presenter : Customize for you r com pany.)

• Our company’s performance management

philosophy emphasizes the important role

employees play in identifying and setting

company and individual performance goals

and standards.• Employees are asked to evaluate their

individual performance and contributions to our

company’s goals. 

• The company recognizes that not all

employees want to participate in this processof self-evaluation and documentation of their

accomplishments. Therefore, completion of the

self-evaluation section of the form is voluntary.

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How Your Performance Appraisal

 Affects Your Pay

(Note to presenter : Custom ize for your com pany.)  

• Our company links annual pay increases to individual

contributions toward the success of our business.

• To be considered for a pay increase, employees must

receive an overall rating of 3, 4 or 5 on their annual

performance appraisals.

• By January 31 of the following (next) year, supervisors

will complete the annual performance appraisals for the

previous year.

• Employees will see pay increases reflected in theirpaychecks the second payday in February.

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Questions? Comments?

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Summary

• The company believes in employee participation whensetting performance goals and standards.

• Communication about company and individual

performance is an ongoing process; however, once a

year the company sets aside time to formalize this

communication through its performance appraisalprogram.

• The annual performance appraisal provides an

opportunity to formally review, document and recognize

the previous year’s accomplishments and each

employee’s performance. •  Annual pay increases are linked to employee

performance documented in the annual employee

performance appraisals.

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Meeting Evaluation

Please be sure to complete and leave the evaluation sheet you

received with your handouts.

Thank you for your attention and interest!

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