The number of businesses conducting regular staff appraisals has fallen in recent years, with many companies opting for a system that monitors employee performance continually throughout the year.

Many HR professionals and employees perceive annual reviews as a source of tension, with the thought of having difficult conversations putting many people off conducting them in a regular fashion.

However, annual staff appraisals aren’t just a way of bringing areas for improvement to the attention of employees, but they also act as safeguard against legal action should the employee have their contract terminated for poor performance.

Legally speaking, employers are not under any obligation to carry our staff appraisals. However, dismissing an employee due to their failure to up their game can prove to be very difficult without the evidence to support your decision.

If the dismissal process isn’t carried out with this important back up, then the worst-case scenario can lead to employment tribunals and hefty fines for the employer.

The best outcome for any staff appraisal is that a series of objectives is set for the employee over an agreed period of time, additional training needs can be identified and catered for and further mini performance reviews are set at regular intervals to track the progress of achieving these goals. This way, there is a written record of any performance concerns and an agreement made between both parties to work together to help the employee improve.

Staff appraisals aren’t always a negative experience either, with many employees taking on board comments or being commended on their work giving them the recognition they deserve for a job well done. By focusing on the positives, businesses can use staff appraisals as part of their staff retention strategy.

For more advice and information on how to conduct staff appraisals and safeguard your business against legal pitfalls, speak to the team at Appointments today on 01782 338787