Standard Appraisal Cycle - to streamline the company appraisal cycle from April to March for all the employees

Hi, I need to streamline the company appraisal cycle from April to March for all the employees; however, currently, it is on a pro-rata basis. Can anyone suggest how I can implement this in my current organization without any loss for the employees whose appraisals are pending this year?

Dear Diksha Mahna,

The replies to your questions are as below:

Clarifying the Appraisal Cycle

When you say "appraisal cycle," do you mean the measurement of the work done in the past performance cycle or the salary increase of the employees? This question arises because many HR professionals use the term "appraisal" for the annual salary increase. Secondly, what is meant by "pro-rata basis"? Though the dictionary meaning is known, the context in which the term has been used is not mentioned.

Implementing the Appraisal Cycle Without Loss

You have mentioned, "appraisals are pending this year." But which year does this refer to? Whatever the year may be, if the appraisals are pending, why not complete them first? Would it be fair to start the performance appraisal activities for the new year without completing the activities of the last year?

Thanks,

Dinesh Divekar

Starting the Performance Appraisal Cycle

One way is to start the PA cycle from 1st April 2021 and begin the evaluation process for 2021-22 after March 2022. It is mentioned that the last cycle has not been evaluated, so complete that process. Thereafter, if a part of the year is left and if at least three months are there in the part-year, then carry out the part-year appraisal. Anything less than three months can be ignored.

Completing the Last Cycle Evaluation

Another option is to complete the last cycle evaluation in full, extended up to the 31st of March 2021. Select the targets accordingly. Inform all employees clearly about the changeover and the consequences thereof. The latter appears to be a more workable solution.

I assume you mean that your current system is to review the work one year after joining and then annually thereafter. Instead, you want to have a standard date on which appraisals are done.

There are a number of reasons to follow each of the above, so I hope you have taken the decision to change after due considerations. In any case, most HR professionals today consider that annual appraisal is inadequate to give feedback to the employees, and it needs to be done more often. I think your problem is mostly due to the fact that you are linking salary increments to appraisals.

If you are moving to appraisals and increments in March, then you need to inform the employees that all appraisals will be in March only. For those who have joined in April - June of the earlier years, you may do the appraisal anyway and let them know that the next appraisal will probably result in a lower increment as the period will be less. For those who are impacted by a few months only, let them know they will be taken care of in the next appraisal.