Annual Performance Review
Purpose
The purpose of this policy is to ensure that a consistent approach is followed when conducting Annual Performance Reviews and that job-related skills, knowledge, employee competencies and behaviours are evaluated and compared against set standards and business objectives.
The [enter-your-company-name-here] Annual Performance Review process has been designed to provide a vital link between the organisations’ business plan, its vision and guiding principles, and the individual. It is also to ensure that goals and objectives flow from the top of the organisation to the personal objectives of each individual.
Policy
This Policy applies to permanent and part-time paid employees only.
During the first month of an employee’s employment in a role, Managers will work with the employee to develop a Performance Plan which will be updated during the Financial Year Period.
The Performance Plan will outline the employee’s goals and objectives for a 12-month period in line with business plans.
The Development Plan will outline the individual’s development priorities for the following 12-month period as well as reviewing any from the previous 12 months.
Consideration should also be given to the individual’s long-term career objectives.
Managers will conduct a formal Annual Performance Review with each employee within the first six weeks of the new financial year for the review period from 1st July to 30th June of the previous financial year (or specified period or time frame).
Progress reviews may be conducted on an informal basis more frequently throughout the financial year.
Periodic assessment and discussion of performance, between Managers and each of their employees, will be carried out during the course of the review period on an “as needed” basis.
Responsibilities
It is the responsibility of Management to:
- familiarise themselves with the performance management system objectives and procedures
- carry out their responsibilities according to this policy.
It is the responsibility of Employees to:
- participate openly and honestly in planning and assessing their own performance objectives and receiving feedback from their Manager or Supervisor.
It is the responsibility of the Human Resources Department to:
- develop a continuing performance management system that will support the achievement of company objectives and fairly and consistently evaluate each individual’s performance against these objectives
- provide ongoing skills development for Managers that are required to effectively conduct performance reviews
- ensure that all Managers are aware of their responsibilities in the performance management process
- provide ongoing support and guidance to Managers with performance management issues.
Procedure
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Safety hazards awareness
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Performance management and performance plan
The Performance Plan is designed to provide an opportunity to establish targets (Indicators of Effectiveness) that provide a challenge to employees and that can be reviewed and modified in response to employee achievements.
The Manager shall develop a Performance Plan in conjunction with the employee within the first month of the employee commencing or during the Annual Review process. The Performance Plan shall be updated during every Annual Performance Review or as required throughout the course of the financial or performance year.
Initially, employees should draft their own Performance Plan and then arrange a discussion with their Manager in order that the Plan can be agreed and finalised. If a situation occurs in which the employee and Manager are unable to come to an agreement, both the employee and the Manager should attach a memo outlining their position, and forward the Performance Plan to the next-in-line Manager for a final decision.
The Performance Plan should outline goals and objectives for the following 12-month period and it is each Manager’s responsibility to ensure that these are in line with the business plan. Each objective should have documented targets and measures to enable accurate assessment.
In addition, the Performance Plan will include an agreement as to the competencies that are to be demonstrated in the role.
Development plan
A Development Plan shall be established within the first month of the employee commencing or during the Annual Review process.
A Development Plan discussion should review the individual’s development over the previous twelve months and outline the individual’s broad career directions and development priorities for the following 12 months.
The Manager should consider what skills, knowledge and competencies are required to achieve the objectives outlined in the Performance Plan, and to close the gap on current and planned competencies.
Annual review
Each year, in the first six weeks of the new financial or performance year, Managers shall complete an Annual Performance Review interview with their employees.
The Manager shall review the employee’s performance against his or her agreed performance objectives, targets and measures in addition to performance against the agreed competency levels.
The individual’s agreed performance objectives and competencies should be reviewed against the set performance ratings.
To ensure objectivity throughout the review process, the “next-in-line” Manager shall remain involved in the review process, agree with the review and sign it off.
Link to salary review process
The Annual Performance Review process may be linked to the salary review process.
Employees should be rewarded on the basis of their contributions to the organisation. This reward may either be an annualized salary adjustment (increase in base pay) or a one-off reward such as bonuses, plaques, lunches, certificates, etc.
Tips
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Traps
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