When you hear the word employee appraisal, most people probably immediately think of the annual appraisal interview. Once a year, managers and employees come together to review performance, define goals and sometimes negotiate salaries. For example, a typical annual appraisal deals with several topics at once, all of which justify their own types of appraisal interviews. But more on that later.
You can read how managers and employees can optimally prepare for such an appraisal interview and what advantages it offers in our separate blog posts.
First of all, we would like to give you a little insight into the wide world of employee appraisals and introduce you to the different types. Because there are plenty of occasions for employee appraisals! – Let’s go!
A Tool for Every Occasion: What are the Different Types of Appraisal Interviews?
Basically, the following applies to all types: An appraisal interview is a management tool in which a manager or the HR department talks to an employee. However, the objectives of various discussions between the parties mentioned are manifold. We have divided the types of appraisal interviews into two different categories. On the one hand, in conversations that take place primarily between employees and their managers. And on the other hand, in the discussions, in which the HR department in particular is also heavily involved.
Employee Appraisals Between Employees and Managers
The Motivational Interview
There are many factors that cause or hinder employees to reach their full potential. A motivational interview offers the opportunity to identify these factors and then actively find ways to increase the inner motivation of the employees. After all, high motivation is also accompanied by better work performance and morale
The Appraisal Interview
Development can only come about through regular feedback and performance reviews. And that’s exactly what the appraisal interview is all about: Managers confront their employees with strengths and weaknesses, but not only assess their personal performance, but also take into account the potential of their employees. On this basis, plans for further individual personnel development can then be discussed, implemented and promoted. This appraisal is usually the main component of the annual appraisal interview. Therefore, the annual appraisal interview and the appraisal interview are often used as synonyms
The Development Conversation
Once the performance has been assessed, the next step is to plan concrete measures. After all, these conversations should not be an unprofitable art, but should actively contribute to the further development of employees. In the development interview, a goal is defined taking into account the current working reality. Together, the manager and employee then discuss the options for closing the gap between the present and the goal. Finally, concrete steps and a time horizon should be defined. The success and implementation of the defined measures are facilitated by the regular conduct of such discussions.
The Salary Discussion
“I don’t want to build castles, just that it’s enough” sang Gunter Gabriel as early as 1974 in “Hey Boss, ich brauch mehr Geld”. Now, not everyone can sing his demand for more salary and unfortunately there are no reliable figures on the chances of success of the musically demanded salary increase. But the fact is: Salary discussions should take place at regular intervals. Employees need appreciation to reach their potential, and this appreciation is also very much reflected in money. Managers and HR managers should therefore prepare the interviews just as well as employees in order to be able to classify demands and treat the other person with respect. Objectivity, traceability across all hierarchical levels and the consideration of performance are also important. Because this is also how employees are valued, namely when they and their hard work are seen AND rewarded.
The Critique Discussion
With a critical discussion, managers point out deficits in their work and try to persuade them to change their behavior by expressing constructive criticism. Several factors are of enormous importance. First and foremost, managers must check the justification of the criticism. Can the employee even achieve what is required professionally? Is all the necessary information available? And a factual mood, in which verifiable examples are presented as evidence for the criticism, is also essential. In addition, it is important not to let the criticism discussion come to nothing, but to constantly evaluate changes and, if necessary, build on them with further measures and discussions.
The Conflict Discussion
When many people come together, conflicts can hardly be prevented. The most important thing when it comes to conflicts in the work environment is not to ignore them. As a manager, it is elementary to actively seek dialogue. A strategy is crucial for a successful outcome. Who is involved in the conflict? Where does the conflict come from? What measures can be taken to resolve the conflict? Can an uninvolved third party help with the arbitration? What are the expectations of the parties involved in the discussion? A well-prepared and constructive conflict discussion can avert damage to the company and, in the best case, even become a win-win situation.
The Return Interview
Absences and absences due to illness as well as parental leave, maternity leave, a sabbatical or a foreign assignment of employees are part of working life. If an absence now lasts longer, a return interview may be necessary to discuss some things and bring the employee up to date. This conversation requires tact and empathy. What is the reason for an absence due to illness and how can the company contribute to an improvement? What innovations and developments have there been in the company since the outage? By discussing these things, managers and HR departments show interest in employees and contribute to a better working atmosphere. After all, returning to work after the employee may have been absent for several weeks or months poses some challenges for both the employee and the employer.
Employee Appraisals, which are Predominantly Led by the HR Department
The Interview
This usually follows one or more positive interviews and serves to clarify final contractual details such as salary, holiday entitlement, probationary period, company car, company pension scheme or further training. The interview usually takes place when both parties have already decided on an employment relationship with each other. For managers, the job interview also offers the opportunity to get to know applicants even better, while they can gain a deeper insight into the company. At the end of the interview, the employment contract is usually waiting to be signed.
The Warning Interview
Sounds unpleasant. It often is. And for everyone involved. Nevertheless, the warning interview, which often follows a critical discussion, plays an important role. After all, a written warning alone will bring about a positive change for very few employees. Instead, managers and HR managers should always express in a personal conversation which misconduct led to the warning. This should best be proven with valid examples and a clear expectation of improvement must also be communicated. And even if this should be clear: Emotions have no place in the warning conversation – even if it may sometimes seem difficult.
The Dismissal Interview
If the warning interview has no effect, managers and HR departments cannot avoid taking further measures. Otherwise, they will not only undermine their own credibility, but also cause damage to the company. And even if one or the other manager has already let his imagination off the leash, a dismissal dipped in drama in the Hollywood way is never an option. In addition, there are numerous situations in which a dismissal is completely unexpected for employees. Therefore, dismissal interviews should always be excellently prepared, because employment law aspects also play a major role here. An undisturbed environment, clear formulations, authentic empathy, respect for employees and a good explanation of the measure ensure that the dismissal interview runs as smoothly as possible. In addition, the timing should also be well chosen to give employees the opportunity to react, consider further steps (e.g. contacting the works council) and process the termination.
The Exit Interview
No matter what reasons employees leave a company, as a company you should always be interested in parting on good terms. Because even former employees continue to act as ambassadors of the company! A separation says a lot about corporate culture and employer image and can influence both the recruiting process and the mood in the company in the future. The exit interview should take place between the HR department and the employee leaving the company. The HR department should also make an effort to issue the employee with a benevolent employment reference as punctually as possible on the departure date. If all the requirements for a constructive exit interview are met, this instrument can be used to preserve knowledge in the company that would otherwise leave the company with the departing employees. In addition, reasons for leaving can be analysed and future fluctuation can be better controlled.
Same, Same But Different: The Lowest Common Denominator
As announced, there are all kinds of occasions for an employee appraisal. The individual requirements vary greatly in some cases – but one thing unites every good appraisal interview: the foundation is laid by preparation and organization.
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