Which is the right appraisal system for my organization?  Is there a right or wrong system? How can I get it right? How do I measure things? What kind of scale should I use? Competencies? Rewards? KPIs? Etc, etc, etc…

Burning questions for many HR professionals!!!

Having a successful performance appraisal system, is not an easy job.  It can cause more harm than good, if not done right.  So, how do we get it right?  What about the companies that don’t have an appraisal system at all? Are they spared the trouble?

And to make things even more challenging… do these apply in the Cypriot market?  Can we take research and good practices carried out in other countries and apply them in Cyprus and get a good system?

There are tons of literature, as well as case studies of companies, we can study before we tackle this issue for an organization.  We can even get lost in all this information, as there is about 60 years worth of it!!

Especially in the last 5-8 years, my team and I have developed a great number of appraisal systems in Cyprus, where we can learn and draw good practices from. As I often say, as a consultant, I have designed more systems in the last 5 years, than in my whole 25+ year career.

This has come about because companies in Cyprus in the last 5 years have come to the following realizations:

1. Things are tough in keeping your people.
2. Things have changed dramatically.
3. Old school performance appraisal systems do not work any more.
4. We need the right systems and tools to manage our people.
5. Having a poor system is better than not having a system at all.

These have brought about a ‘wave’, if I may say, of requests to change/review/establish performance appraisal systems.

So, based on our experience in Cyprus these last few years, here are some tips and pointers to take into consideration for your performance appraisal system:

• Get rid of rating scales in non-measurable things. Don’t try to measure the unmeasurable.
• Choose the competencies wisely. Don’t draw lottery to choose out of the 200+ you might have the option to.
• Focus on continuous feedback.
• Get rid of the ‘once/twice a year’ philosophy.
• Develop it gradually, don’t go for the full-blown system right away. 360° is not suitable for all.
• Assess the readiness and maturity on appraisal systems, of your people. Not everyone is ready!
• Make sure you have all the other HR systems-policies-manuals-procedures in place, before you implement your performance appraisal system.
• Develop a development and growth culture in your organization.
• Everyone wanting to learn and develop is an ingredient of a good recipe for a performance appraisal system.
• Make sure your organizational chart is there, meaningful and functionable and has job descriptions for all job roles connected to it.
• Involve your people in building your system. Make them be a part of the process. They have valuable input to give you.
• Build a system JUST FOR YOUR ORGANIZATION. Don’t copy from others. You don’t know the reasoning behind their choices, it might be different than yours.

And above all… be patient.

Building a good appraisal system for an organization in Cyprus, usually takes time, so the people doing it should have the patience it takes to lead their organization to something unique and fit for their culture.

Anna Xinistery

General Manager – Consultant – Trainer