The annual performance review, or annual appraisal interview, is a privileged moment of exchange between the employee and his/her manager, to assess the work accomplished and the results of the past year, but also to set new objectives for the following year. Before carrying out this exchange, it is essential to know how to prepare an annual appraisal interview in advance.
When and how to prepare for an annual performance review? Intuition Software explains everything you need to know to ensure a successful annual appraisal.
What is an annual performance review?
The annual performance review, also known as the annual appraisal interview, is a discussion between a manager and an employee, which generally takes place once a year, at the beginning or end of the year. This exchange provides an opportunity to review performance, assess skills and discuss the employee’s professional development for the coming year.
The annual personal interview is often confused with the professional interview, which takes place at longer intervals and provides an opportunity to reflect on the employee’s prospects for development, training and support over the medium and long term.
Worth noting
According to the APEC website, some 71% of employees surveyed who have had their annual personal interview consider it to be useful, and 64% of them say that it enables them to discuss sensitive issues. But only 50% of employees claim to have prepared their annual appraisal interview in advance.
What is the purpose of an annual appraisal interview?
The purpose of an annual appraisal interview is to assess the employee’s skills (soft skills, mad skills and hard skills) and motivation. It’s also an opportunity to examine the employee’s career development aspirations, and to support him/her in his/her development. The annual appraisal interview can also be an opportunity to award a salary increase based on the past year’s performance.
Establishing such moments of exchange can also prevent the company from finding itself faced with situations where the employee is experiencing a loss of meaning at work (brown out) or demonstrating symptoms of quiet quitting.
During the annual performance review, a report is usually drawn up to summarize and retrace the exchanges, with one copy for the employee and one for the manager.
Is the annual performance review mandatory?
No, the annual performance review is not compulsory, but in practice it is strongly recommended, as it provides an ideal opportunity for an exchange of views between the employee and his or her manager. This differs from the professional interview, which is required by the French Labor Code every two years to discuss the employee’s career development prospects.
It is up to the employer to decide whether or not to set up an annual appraisal interview within the company, and if so, the employee must be invited to attend. The annual performance review may then become mandatory:
If provided for in the collective bargaining agreement,
If the CSE (social and economic committee) and the CHSCT (health, safety and working conditions committee) have been consulted,
the manager has informed the employee of the date of the meeting.
Once the decision to introduce an annual performance review has been taken, the company must respect its commitments by offering a performance review to all employees, regardless of department, experience or status.
How long does an annual performance review last?
On average, the annual appraisal interview lasts between 40 minutes and 1 hour. It’s up to the company to set an average duration, but the manager or employer must be prepared to dedicate more time to the meeting if necessary.
As a manager, how do you prepare for an annual performance review?
As a manager, it’s essential to take stock of the past year, assess results, study areas for improvement and listen to requests, in order to improve the quality of working life and performance of each employee. In order to optimize the exchange of ideas, it is essential to prepare the annual performance review well in advance.
Review the results of the previous annual performance review
Unless you’re dealing with a new employee, it’s easiest to start from a past report and build on it. This allows you to review the key points discussed at the last annual appraisal meeting, and to compare results and developments over the current year.
Draw up a list of topics to be discussed during the interview
Having in mind what you want to discuss with your colleague will ensure that you don’t forget anything important during the meeting. Typical subjects to discuss are
The employee’s performance,
Career development,
Skills and training requirements,
Quality of life at work,
Work-life balance.
The last two points of the annual performance review enable you to identify negative feelings and make improvements to avoid a drop in productivity.
Inform the employee concerned in advance
In the event of an annual performance review, it is compulsory to inform the employee concerned, in accordance with the French Labor Code, of the “methods and techniques of professional assessment implemented in his or her respect” (art. L.1222-3).
While it’s important for the manager to prepare for the individual interview in advance, it’s just as important for the employee to be able to prepare as well.
Examples of questions to ask at the annual performance review
Here’s a list of questions to ask during the annual appraisal interview to gauge the employee’s commitment and prospects in his or her position and within the company:
- How do you feel about your job?
- How would you sum up your year?
- What projects are you comfortable with? And what projects would you like to work on in the future?
- What goals would you like to set yourself for the following year?
- What would you like to progress towards?
- Do you have any ideas for training courses?
- What do you think of current management?
How can I prepare effectively for an annual performance review as an employee?
The annual performance review can be a source of stress for employees. However, it is also an excellent opportunity to highlight the value of one’s work, to propose motivating objectives or to formulate specific requests (raise, training).
Once the employee has been notified by his or her manager of the date of the annual appraisal interview, he or she must have time to prepare in advance, in order to take stock of the past year and his or her future development.
Taking stock of the past year
Taking stock means highlighting the positive aspects of the employee’s performance, who can prepare a list of successes and achievements. It’s also an opportunity to point out mistakes and obstacles encountered, while suggesting areas for improvement. This shows the manager a capacity for self-evaluation and a desire to find solutions.
List development prospects
The annual appraisal interview is the ideal time for employees to share their career prospects with their manager: development within the company, internal mobility, new responsibilities, acquisition of new skills, etc.
For example, if you are currently a marketing analyst and aspire to become a marketing manager, the annual appraisal interview is the time to discuss the skills to be acquired, the training to be taken and the steps to be taken to achieve this goal.
Examples of questions to ask at the annual appraisal interview
The manager will ask questions to find out about the employee’s commitment and objectives, which may lead to relevant questions being asked:
- What are your plans for the team in the coming year?
- What are your expectations of my position and skills?
- What areas for improvement should I focus on?
- Are there any training courses planned in this or that area?
How to conduct an annual appraisal interview?
The annual appraisal interview should be a real opportunity for constructive exchange. To achieve this, it’s important to listen carefully, highlight the positive and set new, clear objectives.
Active listening
The annual performance review is a time for exchanging ideas, and no one should monopolize the floor. Questions should be asked from both sides, and it’s very important to listen carefully and take note of the answers. As a manager, feedback on the team, working conditions, performance or desires for development is valuable information for the future. You must therefore avoid :
Closed questions,
Judgmental questions.
It’s also important to conduct a personalized interview for each employee, adapting the questions and discussions to the individual and his or her position.
Highlighting the positive points of the past year
The annual performance review is also about valuing employees’ work. It’s important to recognize their good work and their progress. Highlighting situations where the employee has been very effective and achieved good results will be a source of motivation.
List areas for improvement and new objectives
Once you’ve highlighted your strengths, it’s time to move on to areas for improvement and new objectives. To do this, you can use evaluation grids (as in job interviews) and propose new challenges to be met.
Ideally, during the annual appraisal interview, it’s best to avoid using the terms “negative points”, which could give the employee a feeling of failure.
What mistakes should be avoided at the annual performance review?
The annual performance review is an important moment that can often be missed due to avoidable mistakes. Here is a non-exhaustive list of mistakes to avoid during this meeting:
- Short notice: scheduling the annual performance review between 1 month and 15 days in advance will enable the employee to prepare effectively;
- Don’t prepare: whether you’re a manager or an employee, the annual performance review cannot be improvised. You need to think about the topics you want to cover in advance, to make sure you have an effective framework for the interview on the day.
- Don’t be punctual: it’s essential to arrive on time, and even slightly early;
- Take the time: set aside a sufficiently long slot for the annual appraisal interview, so that the exchange is constructive and can cover all the points prepared by both parties;
- Not being a good listener: as a manager, you ask the questions, but you also have to be able to listen and take note of the answers. The annual performance review is not a monologue, but an exchange;
- Focusing on negative points: it’s important to emphasize areas for improvement, but this must be done by first acknowledging the efforts made, and then finding solutions to the difficulties encountered. Employees should feel supported, not judged;
- Focus on remuneration: for the employee, the annual appraisal interview can be an opportune moment to ask for a pay rise. However, this is not the main issue at stake, and the employee must first have adequately defended his or her successes and achieved his or her objectives.
While the annual performance review can be a stressful time for the employee, it should be seen as a genuine opportunity for discussion with the manager, dedicated to assessing the past year’s results and achievements, and to identifying areas for improvement and future development. To make the annual appraisal interview less solemn and less anxiety-provoking, you can offer to set up a regular follow-up for your employees, with several interviews during the year.