Phil Shohet, Kato Consultancy
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Phil Shohet

The full picture

Best Practice 22 May 2008

Staff appraisals must cover every aspect of performance

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Spring is traditionally the time for staff appraisals and there will doubtless be many people hoping that their achievements in the past 12 months will warrant a pay rise.

But a staff appraisal is about more than that. It’s a chance to check historical performance against targets, review salary and set new targets. Unfortunately, firms are missing the opportunities offered by a more detailed examination of staff performance.

These are the people who may one day be responsible for carrying the business forward, but unless their talents are identified and nurtured, the firm will be squandering its greatest asset.

In many practices, staff appraisal is an ongoing process and, although there may only be one major review each year, there are a number of formal procedures in place to monitor and encourage progress. The process is constructed for and concentrated on the individual and dictated by their needs. Thus a talented, but reserved individual will require a different career development plan from a self-motivated person in a similar position.

The appraisal process should examine every aspect of the individual’s performance. Often, it is only the view of those in authority that are considered relevant. So a partner may consult with other partners or a head of department when making an assessment, but there is a wider body of opinion that needs to be consulted to get an accurate picture.

The concept of 360 degree appraisals is not new, but it requires more time and effort from HR. The premise is that almost everyone who works with an individual will have a valuable contribution to make to the process. Their peers will have insights into the ability to get on with their colleagues and work as part of a team, while those working under their authority will have an opinion on the quality of their leadership and their ability to delegate.

Of course, there is the possibility that someone will use the confidentiality of the process to try and settle a personal score. However, if the appraisal is thorough, such comments can easily be spotted and discounted. The benefits far outweigh the additional time and trouble.

It gives partners a better idea of the true qualities, abilities and potential of their staff. This will enable them to plot career paths that, while challenging, will not be overwhelming. Those with the greatest potential can be more closely mentored and encouraged while others can be found a route that will keep them content and, at the same time, making a valuable contribution to the business.

Firms adopting this process will see a more motivated and committed workforce with lower absenteeism and staff turnover, with significantly higher productivity.

And then, of course, there are the partners. Many will contemplate with horror the idea of being judged by their staff, and it takes a managing partner with exceptional diplomatic skills to manage the process.

Phil Shohet is a director of Kato Consultancy

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