EMPLOYEE PERFORMANCE APPRAISAL POLICY

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1 EMPLOYEE PERFORMANCE APPRAISAL POLICY Introduction: How to Use This Tool Employee performance appraisals are usually completed at least once per year in almost every organization. Performance appraisals are an essential part of performance management because they deliver messages of success, improvement areas, goals, objectives, development opportunities and action plans to employees. When done well, performance appraisals can have a positive and dramatic effect on employee productivity. This policy template provides a structure for defining your organization s Employee Performance Appraisal Policy. Policy Title Policy Owner Policy Approver(s) Related Policies Related Procedures Storage Location Effective Date Next Review Date Performance Appraisals Human Resources, Line-of-Business Managers Human Resources, Executive Team Name other related enterprise policies both within or external to this policy. Name other related enterprise procedures both within or external to this policy. Describe physical or digital location of copies of this policy. List the date that this policy went into effect. List the date that this policy must undergo review and update.

2 Purpose [Organization name] s employee performance appraisal process offers both formal and informal mechanisms for providing constructive feedback and assessment of performance measured against fulfillment of role requirements by an individual employee. Scope Every employee of [Organization name] is evaluated on their ability to fulfill the requirements of their role as outlined in their job descriptions. Each employee is entitled to an [annual, semi-annual] formal employee performance appraisal session where written documentation is provided using standard forms and templates. All managers and supervisors at [Organization name] are required to understand and apply this policy. Application of this policy is mandatory unless otherwise specified by the Human Resources Department, in which case a variation of this policy may be drafted and applied. Definitions Employee Performance Appraisal: the assessment of employee performance in relation to their specific job description, performance goals and objectives. Informal Feedback: casual encounters between a manager and a direct report that provides an opportunity for informal comments about a specific performance, event or coachable moment. Formal Appraisal: where an employee s performance score is presented to the employee along with a [30 minute, 60 minute] discussion of the score. Line-of-business Manager: a general manager of a department. For example: IT Manager, Sales Manager, etc. Coachable Moment: an event that provides an opportunity for coaching, feedback or comment on performance.

3 Governing Laws and Regulations 1. Code of Federal Regulation Title 4: Accounts (December 2005) (United States) 2. The United States Department of Labor (United States) does not mandate performance appraisals. 3. The Canada Labour Code, or the Employment Equity Act, 1995 do not mandate performance appraisals. 4. The Employment Standards Act, 2000 (Ontario, Canada) does not mandate performance appraisals. 5. The Employment Rights Act, 1996 (United Kingdom) does not mandate performance appraisals. Policy Responsibility Supervisors are responsible for ensuring that Performance Appraisals are conducted as close as possible to the employee's appraisal date. Procedure 1.01 The Personnel Department will provide departments with lists of employees to be appraised at least two (2) months in advance of the appraisal date. If requested, Personnel will also furnish copies of current job descriptions The supervisor and the employee being appraised will both draft responses to each section of the Employee Appraisal form. They will then meet in an appraisal interview and review each section of the form in detail After the appraisal interview, the evaluator will complete the report. The employee being appraised will review the document, add any comments he or she may wish to make, and sign the form. The evaluator will also sign the form The Appraisal form will be forwarded to the next higher administrative level for review, comment and signature and then sent to the Director for review.

4 1.05 Completed forms will then be sent to Personnel with copies being routed to the employee and departmental files. The copies sent to Personnel will be kept for three (3) years, then destroyed. Employee Appraisal Form INTRODUCTORY SECTION The purpose of this review is to have a meaningful discussion about performance over the prior year including achievement of Organization, department and individual goals as well as to identify strengths and areas for improvement and further development. The review also allows us to achieve a common understanding of future expectations. This is a Confidential Document. EMPLOYEE INFORMATION Last Name First Name Role Hire Date Manager Department REVIEW INFORMATION Originator

5 Review Period Due Date SECTION 1A GOALS - ACHIEVEMENT Insert Rating achieved for each goal (and attach completed 1 st and 2 nd Half Goal Worksheets). Rating Explanation and Description 5 Far exceeded results expected on all levels (time, resources used, crossfunctional coordination, communication to peers, customers, employees and management, proactive on all fronts, highly creative) 4 Met overall goal but exceeded many results expected. 3 Delivered all results required of goals on time and on budget. 2 Made meaningful progress towards achieving goal, full results expected not achieved 1 Made some progress, results expected not achieved.

6 First Half Goals Year Overall Rating / Score Percentage Comments Second Half Goals Year Overall Rating / Score Percentage Comments SECTION 1B OVERALL GOAL RATING Managers: Consider level of challenge of goals relative to peers and impact of goal results to the Organization. Overall Goal Rating

7 SECTION 2 JOB COMPETENCIES / BUSINESS ACUMEN Insert Rating achieved for each competency Rating Description 5 Far exceeded competencies on all fronts 4 Met competencies very well and exceeded in many areas. 3 Met all competencies very well and exceeded in several. 2 Met some competencies well and working on achieving others. 1 Not all competency levels needed. JOB KNOWLEDGE MASTERY OF ALL COMPONENTS OF THE ROLE AND LEVEL Possesses knowledge and understanding to successfully execute all typical job requirements for role. Understands optimal inter-relationships of own job functions to other job functions within the Organization Keeps skills current with business model and market direction. QUALITY

8 Accuracy Completeness Efficiency Innovative Work is valued and respected by others. PLANNING AND ORGANIZATION Accurately projects time, critical path, resources needed, cross departmental planning necessary Effectively handles multiple priorities Multi-tasks Great under pressure. WORK STYLE

9 Can-do approach and attitude (glass ½full not ½empty) Exemplifies strong human respect values Goes the extra mile Works well under pressure without adversely impacting others Handles change and fast pace well Others look forward to working together. COMMUNICATION Strong interpersonal skills, listens effectively, collaborates Communicates clearly verbally and in writing, including presentations and meetings Ensures co-workers and employees have a clear understanding of issues/solutions and goals/progress. TEAMWORK AND BONGARDE VALUES

10 Works well with a group Actively supports teambuilding within/between teams and across departments Exemplifies cross-functional respect and cooperation Willingness to go beyond job requirements. For Individuals in Leadership or Supervisory Roles Evaluate optional factors if applicable to team member s position, insert N/A if not applicable. LEADERSHIP / SUPERVISION

11 Plans ahead to structure the right team to anticipate and meet the Organization s requirements Supports and owns tough decisions about budgets, resources, goals, workflow and organization s design. Keeps pace with industry and business mode market changes, learns new skills, keeps team abreast. Exhibits sound and effective judgment and decisions. Effective at recruiting and retention of strong performers. Motivates others to achieve Sets goals, discusses performance regularly and completes meaningful reviews on time. Develops others to build redundancy in job knowledge and capabilities. Creates opportunities for expanded job growth of team members Tackles poor performance effectively Is respected by team and by organization as a leader. RESOURCE MANAGEMENT Efficient use of time, money and/or materials both internal and external Ability to properly predict expense and accurately project timelines Ability to mobilize internal and external resources creatively.

12 SECTION 2B OVERALL COMPETENCY RATING Managers: Consider level of competencies, relative to peers and impact on Organization. SECTION 3 OVERALL FORM RATING FROM SECTION 1B AND 2B Rating Weights Section 1B Goal Achievement Section 2B Job Competencies Achievement

13 COMBINED RATING SECTION 3 SKILLS DEVELOPMENT ACTION PLAN (minimum of 2) List clear development objectives. Define the knowledge/skill/goal, why it is important to the role/organization. List specific actions/steps, timeline, how employee will contribute to self-development and how the Organization can assist.

14 EMPLOYEE ACKNOWLEDGEMENT I have read this review and discussed the information with my manager Employee Signature and Print Name Date Manager Signature and Print Name Date Original filed in HR with copy to Manager and Employee Revision History Version Change Author Date of Change

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