As an HR Software and Services platform that works with some of the fastest growing startups in India today, we at Quikchex have observed that the performance appraisal processes at most younger companies are often not formally structured.
A well-defined appraisal process leads to greater transparency within the organisation, and enables employees to feel that they are getting a fair share. But conducting the perfect appraisal can be a little tricky and time consuming. We thought it would be a good idea to put together 5 factors that you need to consider when designing the performance appraisal process for your organisation.
Frequency Of The Cycle
It is important to conduct at least one review a year but what about more than one? Sometimes it might be necessary to revisit some of the performance metrics more than once a year. But how do you manage the perfect appraisal for your company? Here’s what you should keep in mind:
a) How important are the KRAs of the employees in the short run?
Sales, for instance, is a crucial part of most organisations. Since they directly impact profitability it’s best to be in a position where you can identify problem areas early. Hence, having a quarterly or monthly review for a function like sales is a good idea. On the other hand, it may not be necessary to revisit certain functions like Accounts or HR on a regular basis. Longer appraisal cycles in this case are a more preferred approach.
b) How long will it take to measure visible change?