Incentive compensation blog

How to prepare your annual apraisal and objectives setting interviews?

Written by Hervé de Riberolles | January 14, 2020

 

Moment of exchange, motivation, objectives setting ... The annual appraisal interview is a very managerial moment. Our advice to prepare it well.

Many have or will have their annual assessment interview, this traditional meeting point organized at the end of the year. Named performance interview, annual review, evaluation interview or appreciation, this moment of privileged meeting between a manager and a collaborator remains a unique opportunity. Why? To reinforce your link as well as your managerial role, and to stimulate the individual performance of your employees.

8 out of 10 companies set it up. 85% of managers believe that the annual evaluation interview is useful. To prevent exercise from causing stress or demotivation: think collaborative rather than evaluation.

 

A MOTIVATED TEAM IS A WELL INFORMED TEAM

Objectives clarity

The annual evaluation interview is an opportunity to remind the objectives set at the beginning of the year. You will discuss respectively the successes and failures of the year. To do this, hav a look to the previous assessments, if they exist.

Criteria can be quantitative and / or qualitative. The clarity of these goals depends on the good motivation of your team. If goal setting is the result of management's strategy, keep in mind that it will be better perceived and accepted when a co-building process is led between the sales manager and the employee.

As a reminder, good objectives must also be easily measurable in order to objectively evaluate the results. They must also be accessible to all, both ambitious and realistic. They are finally customized to each collaborator according to his skills.

The challenge boost

Organizing a business challenge in September is a good way to motivate all your employees before starting a well-deserved vacation. This type of booster may be relevant depending on the seasonality of your activity. You will then take into account the heavier months in your compensation plan.

 

 

TRANSPARENT EXCHANGES: KEY SUCCESS FACTOR FOR A SUCCESSFUL ASSESMENT INTERVIEW

Be open and honest

Dedicate this time to honesty and candor. No subject should be considered taboo. Everything can be said, as long as the respect of the "actors" persists. The manager must make the collaborator actor and let him make his own assessment, with constructive self-criticism. Conversely, the manager must highlight the strengths, highlight the areas for improvement in a personal development perspective.

The annual appraisal interview is sometimes also a time to address the pay issue. A potential increase in fixed may be negotiated. Conversely, the variable part is obviously not negotiable. On the other hand, it may be a moment to announce future goals. Evaluation is essential. To achieve it in good conditions, it is necessary to create a computational link between the evaluation and the premium. You have available software solutions on the market to help your employees know the current status of their bonus and give them future bonus simulations based on anticipated performance. These bonus simulators are effective for more transparency and motivation.

Trainings for your managers also exist to give them the methods and action lever for their goal setting interviews. This understanding and mastery of variable compensation will allow them to anticipate objections and arrive more serenely during these often feared interviews.