It appears that your major problem is not Performance Appraisal but employee attrition. Your second problem could be faulty organisation structure. Employee turnaround could be because of many reasons and one of them could be no proper measurement of the work done. When you quantify the work, it helps you in segregating the poor performers from the excellent performance. But for this you need to study systems and processes of each department and then design the KPIs.
The important point is PA concentrates only on the individual performance. We need to go beyond and measure the business performance. For this you need to have well-designed policy on Performance Management System (PMS). There was query in this forum on PMS. I have given reply to this post. Click the following link to refer the reply:
In the above link, you will get further links. I request you to go through each link patiently and possibly you may understand how lack of proper work measurement impacting your organisation.
For further doubts, you may call me on my mobile number.
Dinesh V Divekar
Some IT companies have resorted to the 'Project based appraisal' approach as per which software developers (and associated technical staff who are changed from one project to another) earn multiple appraisals during the year. The management of this approach is possible only through an e-appraisal system coupled with instructions to all PMs to complete the Appraisals within 15 days of the inter project transfer of their team members.
Yet another method which has been followed by IT companies is to have a 'Goal based appraisal' in which a Goal Sheet is maintained for each employee, on which the status of completion of the tasks related to each project are filled in by the employee and reported upon by his/ her manager. This Goal Sheet carries the performance record of an employee on tasks allocated by each PM under whom he/ she has served during the year. In an e-enabled system, no one can alter this record & the Goal Sheet remains visible to the employee & his/ her current manager. At the end of the year, before initiating the annual appraisal cycle, the e-Goal Sheet automatically gets transferred to the e-Appraisal Form and the current PM can view the complete performance profile of each of his/ her team members. Thus the performance report initiated by the PM at the time of annual appraisal becomes objective and goal based. 'EmpXtrack' supports this approach also.
May be you can visit the EmpXtrack website, read through the relevant pages, see some presentations & also take a free trial. And if you need any further clarifications, their team shall be pleased to respond.
Hope you do find a solution to your most genuine problem which, in fact, has been the problem of all IT companies.
You can, perhaps, choose any of the approaches suggested by me and try out the same manually. May be it works if you can manage the process with the help of your staff ! What more may I advice with my 4 decades of experience? Good luck.
Since you say that any employee stays on a project for only 3 to 4 months there has to be a log created on every employee involved in a project by the time of its completion. This log, in our opinion must be synchronized with the performance appraisal that happens annually to determine increments based on performance. The project manager who is managing the employee at that point in time must have access to the previous logs in coordination with the HR department.
As usual performance appraisals have both the self-appraisal part as well as the supervisor's appraisal.
trust this helps