How Should HR Handle Employee Disputes Over Appraisal Results?

Handling Employee Appraisal Disputes

What would HR do if an employee is not happy with their appraisal and does not accept the appraisal letter?

In this situation, HR would typically initiate a discussion with the employee to understand their concerns and reasons for not accepting the appraisal. It is crucial for HR to listen actively to the employee's feedback and try to address any valid issues or grievances they may have regarding the appraisal process or outcome.

HR may review the appraisal process to ensure it was fair and objective, provide clarification on how the appraisal was conducted, and offer the employee an opportunity to provide additional input or evidence to support their position.

If after the discussion the employee still refuses to accept the appraisal, HR may need to explore alternative solutions such as involving a neutral third party for mediation or arbitration, revisiting the appraisal criteria, or providing guidance on the steps the employee can take if they wish to appeal the appraisal decision.

Ultimately, HR's goal is to find a resolution that is fair and satisfactory for both the employee and the organization while upholding the integrity of the appraisal process.

It is the role of HR to convince and support the employee post-appraisal process. It's the HR who needs to sit with an employee and try to persuade him/her as to what were the reasons for the low increment. HR needs to explain the outcomes of the appraisal and the management's point of view for the increment finalization. This discussion needs a positive energy from HR, excellent convincing skills, and also the ability to control and keep the environment calm.

Thank you all for your comments. However, I have conducted all the necessary interactions and motivational talks with the employee. Despite this, he is not accepting the revised salary; he considers it low. Nonetheless, based on his performance, the appraisal process has been carried out correctly. Therefore, I would like to understand the steps that management should now take.

Thank you all for your comments. I had already conducted all the interactions and motivational talks with the employee. However, he is still not accepting the revised salary as, according to him, it is low. Nevertheless, based on his performance, the appraisal process has been carried out correctly. Therefore, I need guidance on the next steps management should take.

HR Compensation & Benefits Analysis

The HR Compensation & Benefits team also needs to analyze his salary in comparison to the market salary within your specific industry and make a decision. If his role is crucial to the company and his performance is at the level of Meets Expectations or Good, then management may need to decide on the increment based on market standards and performance.

Regards,
Nellaiappan S Pillai

Please conduct an appraisal review process. If HR is fully convinced that the appraisal process is carried out in the right manner (without any ambiguity), then call the employee and hold a discussion to convince him to accept the rating awarded to him and the salary increase related to that particular rating. If it is found that he has the potential for further growth, direct the appraiser/department manager to restructure the KRAs so that he will be given a challenging target and also receive a good increase next time.

Thanks,

R K Nair

There are two parts that you need to consider:

a. Performance Review

If an employee is not satisfied with the performance review, please have a discussion with the employee on performance parameters and achievements with examples. Based on expectations versus actual delivery, you will need to convince the employee, specifically if force-fitting has been done.

b. Increment

Regarding the increment, please have a discussion on performance as related to the increment, salary band, and market value.

Based on the above, the two of you should reach some conclusion. In case the employee still refuses, please ask him to write that he refuses to accept the letter, sign it, and attach it to the personal file/database. The employee will not receive the new salary as he has not accepted it.

Addressing Employee Appraisal Concerns

PAs are typically a motivational aspect of employment, but in this kind of situation, they can become negative, especially where the HR role comes into play. As you mentioned, you have had an interaction with the individual, but they are still not accepting the letter. You must show them the remarks and performance evaluations provided by reporting managers. Sometimes, despite an employee putting in significant effort, they may not achieve the desired results. This can lead to the perception that their efforts are being monitored, potentially affecting their appraisal. On the other hand, colleagues who put in less effort may achieve better results, leading to their recognition and appraisal. This kind of situation may be what the employee is facing. You could reassess the employee's performance graph, discuss with reporting managers the reasons behind their remarks, and consider other attributes for appraisal. If you find evidence of loyalty and dedication to work, you could reconsider the appraisal, especially if the employee remains unconvinced by the current assessment.

It's not difficult; simply show the employee their performance graph. Avoid comparing their performance to that of other employees. Instead, communicate with them, highlighting their strengths to motivate them towards achieving better results. This approach could lead to a more substantial increment in their next appraisal, as suggested by my friend Pranati R. However, caution is advised, as taking a different approach might lead to the employee feeling demotivated and incurring a loss. Although presenting this alternative perspective is an option, it is not recommended.

Thank you.

I totally agree that we, as HR, should do our best to motivate the employee and get him to accept the review with an open mind. However, the final choice lies with the employee. If he still refuses the appraisal update, we need to note the reason and record it.

@Pranati - please don't take it personally. I just shared my views. Now, come to the point. As you said, the final choice lies with the employees, and if they still refuse, then we should ask for the reasons and document it. My point was to clarify that it will set a benchmark, and also, psychologically, HR professionals will consider this option in the future when faced with a similar situation. He refused, but the main point is that he is rejecting the right thing that management did for him. Convince him through a one-on-one discussion. Communication is the key to problem-solving. If the issue is not resolved, then sit with the management and involve him in that discussion. There is always a penultimate option available.