How Can We Make Employee Appraisals Fair When Hire Dates Vary Throughout the Year?

Hi,

How do companies conduct the appraisal for an employee? An appraisal is done during the year-end when all employees receive a raise from April. Another appraisal is conducted when they complete one year of service. But how do we ensure that the cycle is fair?

For instance, a person joined in January 2006, completes his one year in January 2007, where he is entitled to a raise. In another four months, there is April when all employees receive a raise due to year-end. Will the person who got his raise in January be entitled to the raise in April? If yes, is it fair? Or do we have to conduct appraisals every month for those employees who completed a year of service? Isn't it taxing?

How do we group employees for a single appraisal who joined in different months? What is the most feasible method for conducting appraisals? How does your company tackle this issue? Please provide your comments. Let the compiled report give us a better insight into this topic to make the appraisal cycle fair and effective.

Asha, I am confused. In your company, it seems each employee is getting two annual appraisals. Each company, in setting up their performance management system, needs to decide on the appraisal cycle. The choices are either:
(a) according to the business cycle (financial year-end, strategic planning cycle, etc.) OR
(b) employee anniversary date.
If you select just one, there should not be a problem.

Vicki Heath
[Human Resources Software and Resources](http://www.businessperform.com)
[http://www.businessperform.com](http://www.businessperform.com)

Hi,

Yes, it's true that sometimes three appraisals also happen. If we conduct appraisals based on the completion of the year of service, every month we will be spending time on appraisals. How do we consolidate everything into one?

Our current practice is as follows: Candidates join on probation for six months (initially with a meager salary). This is followed by a performance assessment and a salary hike. After completing one year of service, another performance assessment is conducted, leading to another hike. Later, in April, we combine them for the annual appraisal, which then continues yearly every April.

Feel free to contribute to the discussion by sharing practices in your company.

Asha

Hi Asha,

Good point raised by you. In my organization, we have an electronic performance appraisal tool. There is a field known as IPO - Individual Performance Objectives are filled in by the employees for themselves with their career goals and development plan by February every month. Then mid-year review is done in July. After the mid-year review, the ratings are given and trainings are decided for all the individuals.

Once it is done, every December the complete review is done for all the employees. In this review, the appraisals are decided, which are implemented from April every year, no matter when the person has joined. The only thing that we have is only those employees are eligible who have completed their probation period.

I think this will be of help.

Cheers,
Archna

Hi Sweta,

If you read my email, I have written about an electronic system that opens for all employees to write their IPOs and Career Plans twice a year, followed by a mid-year review to provide a brief profile of their performance in the current year.

We do not use any specific formats for this; it is all done through the electronic system, so I am unable to assist with providing further details.

Cheers,
Archna

Hi!

In my organization, the appraisal is done once a quarter. So, it is just a matter of choice.

Regards,
Shyamali

Hi Archna,

You mentioned that annual reviews are done in the month of December, and hikes are effective in April. Can you please let us know what the assessment period is in that case? Is it January to December, or April to March?

Thanks!

Hi!

The actual frequency of performance appraisals is largely dependent on the NEED, the SIZE of the company, and the SIZE of the HR unit that will administer/process it. There is no specific frequency that compels an organization to do it within a minimum frequency because companies differ in various sizes and ways of doing business. Moreover, a one-stage appraisal procedure is quite unpopular now. That's why we are now discussing PMS, whose last letter means "SYSTEM" — an integrated or series of processes to do.

1. NEED - A performance review is necessary "when a company implements a probationary period of employment" because it has to show the basis for those who were not successful in being given a regular employment status. When an employee complains about the termination of their probationary employment, the company must be able to show the reasons and/or basis for its action/decision. The same need arises when a company wants to promote or reward some of its employees.

Therefore, every time there is an employee who is supposed to end the maximum period of probationary employment/gets promoted, HR is compelled to implement an assessment. Hence, the frequency within the year depends on the quantity of probationary employees/promotable employees that a company has at any given time. This is especially true for companies operating in countries whose labor laws mandate "automatic regularization" when employees complete a minimum period of the mandatory probationary employment.

2. SIZE OF COMPANY - Implementing a frequent (e.g., quarterly or semestral) performance review for small size companies is not difficult to make. But doing it in organizations with thousands of employees in multiple locations may just be impossible — even if HR has a large number of staff that can assist in its implementation.

For those who are hands-on HR people, you know that the implementation of a performance review goes beyond the distribution and accomplishment of the forms — whether manual or electronic.

Processing the forms, advising the concerned employees about its results, conducting the performance meeting/counseling, developing the improvement and development plan of each employee, and linking the results to recognition/rewards/or sanctions — all these take time. Sad to say, there are only TWELVE (12) MONTHS to count every year!

Hence, HR must make a plan and present a reasonable TIMELINE for its start and finish — especially when the result will be used as a basis for top management in the announcement of promotions and bonuses.

3. THE SIZE OF HR - There are organizations whose HR unit is manned by a single SUPER HUMAN RESOURCE OFFICER! When you are in this kind of employment environment, your SPIRIT/MIND may be willing to implement frequent performance review, but your FLESH/BODY may not physically be able to support it, especially if your company has thousands of employees in multiple locations. Indeed, you can only do so much even if you are a superhuman HR!

Best wishes.

Ed Llarena, Jr. Managing Partner Emilla Consulting

I think we have to do well to distinguish performance appraisals relating to the probationary period and normal performance appraisal, which usually has a one or 365-day cycle. The reason is that different companies have different probationary periods and different expectations from probationers as far as performance is concerned.

After confirming a probationer, the company expects more consistent higher performance from a confirmed staff. It is, therefore, important we differentiate appraisal for the confirmation of a probationer and regular yearly appraisal. The latter has a more detailed expectation than the former.

Hi! The actual frequency of performance appraisals is largely dependent on the NEED, the SIZE of the company, and the SIZE of the HR unit that will administer/process it. There is no specific frequency that compels an organization to do it within a minimum frequency because companies differ in various sizes and ways of doing business. Moreover, a one-stage appraisal procedure is quite unpopular now. That's why we are now discussing PMS, whose last letter means "SYSTEM" - an integrated or series of processes to do.

1. NEED - A performance review is necessary "when a company implements a probationary period of employment" because it has to show the basis for those who were not successful in being given a regular employment status. When an employee complains about the termination of their probationary employment, the company must be able to show the reasons and/or basis for its action/decision. The same need arises when a company wants to promote or reward some of its employees. Therefore, every time there is an employee who is supposed to end the maximum period of probationary employment/gets promoted, HR is compelled to implement an assessment. Hence, the frequency within the year depends on the quantity of probationary employees/promotable employees that a company has at any given time. This is especially true for companies operating in countries whose labor laws mandate "automatic regularization" when employees complete a minimum period of the mandatory probationary employment.

2. SIZE OF COMPANY - Implementing a frequent (e.g., quarterly or semi-annual) performance review for small-sized companies is not difficult to make. But doing it in organizations with thousands of employees in multiple locations may just be impossible - even if HR has a large number of staff that can assist in its implementation. For those who are hands-on HR people, you know that the implementation of a performance review goes beyond the distribution and accomplishment of the forms - whether manual or electronic. Processing the forms, advising the concerned employees about its results, conducting the performance meeting/counseling, developing the improvement and development plan of each employee, and linking the results to recognition/rewards/or sanctions - all these take time. Sad to say, there are only TWELVE (12) MONTHS to count every year! Hence, HR must make a plan and present a reasonable TIMELINE for its start and finish - especially when the result will be used as a basis for top management in the announcement of promotions and bonuses.

3. THE SIZE OF HR - There are organizations whose HR unit is manned by a single SUPER HUMAN RESOURCE OFFICER! When you are in this kind of employment environment, your SPIRIT/MIND may be willing to implement frequent performance reviews, but your FLESH/BODY may not physically be able to support it, especially if your company has thousands of employees in multiple locations. Indeed, you can only do so much even if you are a superhuman HR! Best wishes.

Ed Llarena, Jr. Managing Partner Emilla Consulting Manila, Philippines (helps improve corporate governance worldwide, especially in Asia, the Middle East, Africa, and the Pacific Region)