Employee appraisal - entitlements, rights and obligations

An employee appraisal is used to assess the performance and behaviour of employees in the workplace. For example, it provides an opportunity to praise particularly good work. At the same time, mistakes, unsatisfactory performance or misbehaviour can also be identified and addressed. This assessment usually takes place as part of an annual employee appraisal.

Employee appraisals give line managers the opportunity to motivate, manage and develop their staff. If criticism is addressed constructively, this can help to improve performance. Any misunderstandings that may exist can be clarified in this context and expectations on the part of the line manager towards the team member can be addressed. Employee appraisals also fulfil the following purposes:

• Managing staff by providing feedback and tips
• Agreement on objectives and specific measures to achieve them (e.g. further training)
• Indication and justification for promotions
• A good appraisal can be an argument for a pay rise for an employee
• Justification for dismissal due to poor performance or misconduct

An employee appraisal can be an important personnel policy instrument for the employer. On the one hand, praise can be given in this discussion, for example for particularly good performance or the achievement of previously set targets. On the other hand, feedback can also include negative points. Managers should endeavour to address points of criticism objectively and honestly, but also diplomatically. Criticism should be communicated as an incentive to do better in the future. This motivates employees to develop further and perform better in the future.

Ideally, an employee appraisal is not a one-sided affair. Employees should also be given the opportunity to give their superiors feedback during the appraisal. This gives managers the opportunity to optimise their management style and develop their skills. Employees can sometimes find it difficult to give their superiors an assessment. They should therefore endeavour to create an appropriate discussion atmosphere and ask their interviewees to do so directly.

From a legal perspective, only employees in the public sector are entitled to a regular annual appraisal. There is no direct legal basis for this in the private sector. In employment relationships in trade, commerce, industry or the private sector, you can assert a claim to an employee appraisal in the form of a reference by referring to the Swiss Code of Obligations (CO). Article 330a, paragraph 1 of the CO states:

"The employee may at any time request a reference from the employer that speaks about the nature and duration of the employment relationship as well as his performance and behaviour."

This gives employees the opportunity to obtain information about their performance and behaviour in the workplace at any time. However, if you are not interested in a reference in the narrower sense, but primarily in a performance appraisal, it is best to raise this directly with your line manager. As a rule, however, appraisal interviews are part of company practice in most companies anyway, as both sides benefit from them.

The main purpose of an employee appraisal is to inform employees about their current status within the company. Another important component that benefits both line managers and employees is the joint formulation of objectives for further development, on the basis of which suitable training measures can then be selected. After all, employees only have the opportunity to develop professionally and personally in a positive working environment.

Tips for managers

As a manager, you should prepare thoroughly for appraisal interviews. If you organise them correctly, you can benefit yourself and your company. The following points can help you to conduct a successful appraisal interview:

• Bring examples: If you criticise, be sure to back it up with examples. This increases understanding and is more likely to lead to your counterpart accepting your statements and working on the issues raised.
• Pay attention to balance: Try not to make the conversation exclusively negative or build up too much pressure. Even if it is a rather below-average assessment, you should still try to mention positive points and thus increase motivation.
• Involve your counterpart: Make sure that the appraisal interview does not become too much of a monologue. Give your dialogue partners the opportunity to comment on certain points or ask questions.
• Offer suggestions for solutions: Although your discussion should primarily inform and educate, it should also motivate and provide a positive outlook for the future. You should therefore work together to develop specific measures to improve certain aspects or achieve certain goals. This could include further training measures or the appointment of a mentor, for example.
• Set specific goals: In order to achieve goals, they must first be formulated. As part of an employee appraisal, you should set specific objectives with deadlines.

What topics are covered in an appraisal?

An employee appraisal is primarily concerned with the professional situation and development of the employee in question. However, as an employee yourself, you also have the opportunity to express your opinion. This allows you to assess the behaviour of your line manager and offer constructive criticism. 

An appraisal interview should cover the following topics:

• Results of the work
• Level of independence
• Behaviour in the workplace
• Objectives and measures to achieve them
• Management behaviour of the line manager

Is it necessary to complete an appraisal form?

Recording the interview is not mandatory, but can be useful. Many companies use a standardised evaluation form for their employee appraisals. This can have the advantage that the appraisals can be compared with each other in this way. The evaluation form can also be provided with individual comments and should remain in the personnel file of the person concerned after the interview. A copy for the employee is also recommended. This way, the employee has the goals set in the interview in writing and can orientate themselves on the results of the interview.

What employees should look out for

An employee appraisal should take place under fair conditions. This includes, among other things, that the arguments should be concrete and well-founded. They should not be based on generalised statements or vague assumptions, but should be substantiated with actual and comprehensible situations. Ideally, the discussion should also be recorded and the document kept on file.

An employee appraisal should be seen by both parties as an opportunity for improvement. This is only possible if an open basis is created for the discussion in which both parties feel safe. As an employee, you should not be afraid to express your opinion honestly.

After the employee appraisal - what happens next

When used correctly, an employee appraisal has a motivational effect on employees. It provides the opportunity to uncover weaknesses and work on them in a targeted manner. By setting goals, a concrete target state is formulated that is to be achieved. The following three points increase the effectiveness of employee appraisals:

• Target formulations: As part of an employee appraisal, the desired objectives should be clearly formulated. These should be measurable and have a concrete timeline. It is also important that the objectives are realistic and achievable within the specified timeframe.
• Take action: After the discussion, the employee concerned should be clear about how she can achieve these goals. Depending on the type of goal, different approaches are suitable. These often include various internal or external courses and further training measures to which the employee can enrol.
• Follow-up meeting: Once the agreed time horizon has expired, a follow-up meeting should be scheduled. This will discuss how the person has fared and to what extent the goals have been achieved. A roadmap for the future should also be discussed at this meeting.