As workplaces evolve, appraisal methods still stand the test of time as the best way a manager can work with their staff to recognize their hard work and dedication.

Today we’ll look at some of the most effective methods of modern appraisals, and some ways you can bring them into your workplace. The aim is to help staff see themselves in the same light as you see them, as valuable members of the workforce powerhouse.

So grab a coffee let’s get into the ways you can use modern appraisals to their fullest.

What are performance appraisals?

An appraisal is the official assessment a workplace uses to reflect on a worker’s strengths and weaknesses. It usually relies on observations and testing, but advancements in digital tools and changes in management philosophy mean that traditional systems of appraisals need to modernize. 

A manager eager to make sure his staff feel fulfilled and on track uses appraisals to their fullest, and the efficacy of modernised and well-researched appraisals has been a hit for all of today’s multinational corporations. So here’s a breakdown of the most powerful modern methods.

7 Modern methods of appraisal

It’s important to consider the usage of modern appraisal methods in remote and hybrid teams, and with today’s expansive catalogue of digital tools, all of the methods mentioned can be applied to a virtual setting. So, what are these key methods?

1. BARS method (Behaviorally Anchored Rating Scale)

In today’s list of modern methods of appraisals, the BARS method is the oldest, and perhaps the most influential. Invented in the mid-60s, this method was the first to introduce standardized guidelines on the appraisee’s performance, rather than a vague list of descriptors used in more traditional methods. Organizations still pour time and resources into building and maintaining these scales today, and the effectiveness of its outcomes is why it has stood the test of time.

To develop this method for your workplace, we need to understand its typical scaling system. Let’s create an example for David, who works as a restaurant waiter. In traditional appraisal methods, an example measurement could be: “Greets the customers well” with a numerical scoring from 1 to 5 (never to always).

In the BARS method, the five-point scale is also used, but the whole point is that each score in the grading system contains a behavioural example. In our example, a level 1 rating might state “David makes no eye contact while greeting customers”, while a level 5 rating might show “David greets customers cheerfully and makes suggestions from the menu based on their preferences.”

As almost 70 years have passed since its conception, analysts have pointed out the imperfections of the system. One of these is that it’s time-consuming, as each question needs to be set up with behaviour descriptions. Another is that it still partially relies on binary data types, yes/no factors. Companies should be careful of these drawbacks to get the most out of the BARS method.

2. 360-degree appraisal

A great method for performance appraisals is using a well-rounded, holistic approach to see the big picture (or even, the wide-angle). This method is designed to collect feedback from multiple parties, and for staff, this helps them to feel like the appraisal process is done in the spirit of openness and fairness. 

It helps staff to understand that their feedback isn’t just top-down, coming only from the boss. Feedback is collected from peers, subordinates and supervisors, as well as a self-evaluation by the employee. Depending on your business structure, you could also include feedback from external sources, like customers and suppliers. Think client reviews and customer surveys.

The key to creating great 360-degree appraisals is including as many people as possible, and making sure sufficient scoring guidance is given to the rater. If no objective guidance is given, biases and personal relationships could affect the scores given, muddying the clarity of the feedback.

This method is the most in-depth, and so is the most time-consuming. With careful planning, using this method grants feedback from the widest pool of sources, and can be used to help the appraisee see their roadmap for growth and progression. Use this method to help your staff shine, from all angles!

3. Continuous performance management 

Here’s a method which is modern, human-centered and takes into consideration the cadence (the timing and frequency) of appraisals. From the get-go, it lets staff know they work for a company with a workplace culture of trust, that isn’t just interested in annual performance numbers.

Modern business practices now have staff supporting each other around the clock and across time zones through digital messaging boards and virtual collaborative tools. This increased pool of potential employees sometimes can make staff wonder or be fearful of their job security. By engaging with your staff regularly about goals, progress and development, staff see you’re interested in their long-term performance, not just when business quarters are coming to an end.

Among the biggest benefits of using this method is a boost in staff engagement. A survey on employee engagement found that staff who’ve talked with their managers about successes and goals in the last six months are 2.8 times more likely to be engaged. Another potent benefit is that this method lowers company turnover rates. In another survey, studies found that companies who implemented regular employee feedback had a 14.9 lower turnover rate.

The importance of giving continuous feedback really shouldn’t be underestimated. Continuous performance management is like giving staff a personal trainer for their career. They’re designed to keep staff on track, cheer them on and help them to reach their full potential, one step at a time.

4. Assessment center method

Here’s a great modern method which can even help identify potential leaders amongst your teams. The assessment center method provides an opportunity to measure an employee’s long-term potential, prioritizing it over their annual performance. This method uses a real-world simulation to get staff into scenarios that showcase their skills.

Assessment centers have been rising in popularity in modern appraisal methods. Coca-Cola USA has recently used assessment centers to select management personnel. They found that staff selected this way were only 64% less likely to leave the company or be fired than those selected in the traditional way. 

A usual assessment day using this method can be made up of role-playing, case analyses and psychological tests. The beauty of this method lies in its ability to peel back the layers of a candidate’s personality and abilities. Candidates show their skills in real-time, under the watchful eyes of assessors and raters.

It’s up to you to make these tests as rigorous or creative as you like. You could use data-heavy testing to find quantitative strength, or role-playing scenarios to find who shines in soft skills like empathy and conflict resolution. 

There’s a reason this technique has been used by some of the largest corporations in the world like IBM and General Electric. Use the assessment center method like a diamond detector, letting you sift through to uncover the standout stars amongst your staff. You might be surprised by what you find.

5. Strengths-based feedback

In understanding how appraisal methods work, it’s important to genuinely consider the feelings and motivations of the candidate who’s up for review. It’s part of a larger movement companies use to ensure they’re considerate of employee wellness. Traditional appraisals focus on what employees aren’t getting right, and by constantly following this old-school train of thought, strengths and potentials might be overlooked.

Of course, managers will always try to include positive points when staff appraisals come up. Managers naturally use these to soften the blows of work-based criticisms, but what if you approached your evaluation with a different mindset?

Strength-based feedback is a refreshing departure from traditional appraisal methods. Instead of zoning in on areas for improvement, it encourages a skilled manager to focus on what’s good. By keeping the main aim of finding what employees do well, the manager then helps their staff leverage their strengths toward these areas of improvement.

It involves new ways of thinking, like the idea of giving feedforward instead of feedback. By bringing this into your appraisals, everyone’s encouraged to think forward and anticipate the future. 

Let’s say you’re giving an appraisal to a particularly good worker. They’ve shown signs that they’re capable of leading, so instead of the usual “you’ve shown great leadership skills,” you apply feedforward and tell them you think they might be able to take on new leadership roles or get into leadership workshops to fine-tune their skills even more.

It’s a powerful forward-thinking method that’s showing great results in finding team members primed to lead. Give it a shot in your next appraisal meeting.

6. Goal setting and OKRs (objectives and key results)

Goal setting and OKRs are modern approaches to performance appraisals that make the most of transparency and clarity to align staff with teams and businesses. OKRs use clear objectives and measurable milestones in appraisals, and a simple formula can be used, such as: “We will [objective] as measured by [key results].

Big players like Google have been on board with OKRs since the turn of the 20th century, and what a success story that turned out to be! Venture capitalist John Doerr is actually seen as the godfather of this theory after using OKRs to keep the (at the time) 40 staff members at Google on track and motivated. More recently, companies like Airbnb, Linkedin and Spotify have also embraced OKRs to drive growth and innovation. They too recognize the value of setting clear goals.

OKRs in appraisals are made up of setting clear objectives and defining key results. Work carefully with staff to make sure they are achievable over a period of time. They should be challenging yet attainable.

Doing this keeps the appraisal goals SMART (Specific, Measurable, Achievable, Relevant and Time-bound), and offers a clear and straightforward path to progression. It's a win-win for both employees and employers, fostering growth and driving success in the modern workplace.

7. Developmental conversations

Whether you’re heading a small firm or a multi-national corporation, an appraisal works best when it includes employee development conversations. A developmental conversation is like a mutual brainstorming session where both the manager and the appraisee figure out ways to grow. So, what does a great developmental conversation between you and your staff look like?

In an appraisal meeting, towards the end of the session, bring in open-ended questions like “Where do you want to go from here?” Establish trust and encourage growth, making sure you aren’t just nodding along with what you hear your appraisee saying. Dig deeper, ask questions and make suggestions on things like workshops, courses and new arenas for learning. 

Together, hash out a game plan, recording goals and steps to get there. Make sure that going forward, this list isn’t set in stone but can be tweaked as you go. By the time you wrap up, the appraisee will find a new spring in their step and feel encouraged, knowing you stand with them as they work towards their future developments.

Sing the praises of your staff, and reward them with one of our team retreats!

The main reason for using personal appraisals is to keep each individual motivated and productive. We know that motivated staff often create high-performing teams, and one of the best ways these teams can reach their peak is with a team-building retreat. So why not try one of these fabulous retreats with us?

Imagine the usual confines of your office settings melting away on a sandy beach or taking the time to appreciate nature on a countryside retreat. A quick change of environment can be as revitalising as a complete office overhaul. Your team will have one another’s backs and be working in complete harmony, motivated to tackle any challenges together. 

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Help your staff reach their highest potential and create motivated superstar teams on a work retreat. Allow us to sort out the tricky logistics! Book now, spaces are limited!