Is an Appraisal the Same As an Assessment?

There are a number of core HR processes that are intrinsic to good and effective people management. The biggest challenge in companies today is the development of talent. Most companies apply a number of HR strategies to become an employer of choice and to be a great place to work.

There are five core people strategies that helps to a company to improve the performance of their employees:

1. How to attract top talent?
This strategy is all about building a strong employer brand, so that applicants are attracted to come and work for the company. Part of good recruitment is to attract applicants so that the company find and recruit the best employees. Best-in-class companies have good assessment processes. In a recent survey by the Aberdeen Group of 400 organizations, it was found that top performing companies are using assessment more broadly across the business, as well as more frequently and consistently.

2. How to motivate employees?
Most companies have an annual performance appraisal process. This is the usual process of conducting a performance appraisal, which is a formal process of reviewing the employee's performance over the last year. Unfortunately many performance systems are better at demotivating employees as supervisors are either reluctant or poorly trained to give constructive feedback to employees. Good performance discussions focus more on the future than on the past.

3. How to reward employees?
Reward systems have improved in the last ten years and there is a better understanding of the need to structure pay to reward both short and long term performance. By having an appropriate fixed pay, the company can then provide variable pay in the form of incentives to encourage performance. For pay systems to work, the systems have to be meaningful and transparent, with clear line-of-sight so that the employee can impact on their pay outcomes. If companies spend half the time in this area, and more time in developing and growing employees, we would have much happier and productive workplaces.

4. How to develop and grow employees?
Most training takes place to improve the employee's performance in the current role, typically technical training or on-the-job training. Far too few companies have good training plans in place for every employee to help them to grow and develop to their full potential.

5. How to retain talented employees?
If all of these five strategies are integrated in a coherent and logical way, this strategy is really about having an open culture so that talented employees share their dreams and aspirations with their managers, making it easier for a company to provide an environment where work is meaningful and rewarding.

Now that we have covered the five core strategies, it is much easier to answer our fundamental question.

What is an assessment?
Conducting an assessment, usually as part of recruitment, assists in the selection of top talent. Many companies only do assessment towards the end of the recruitment process, usually just before reference checking. However, there are a small number of employers that have realized there are significant benefits in pre-employment screening to identify top talent. If you are asked to participate in an assessment process, it is always advisable to understand what sort of tests are going to be conducted and to ensure you get feedback once assessment has been completed. Assessment typically includes a number of tests to determine and measure the person's knowledge, skills and abilities; as well as beliefs that impact on their behavior.

What is an appraisal?
Appraisal is part of performance management, an essential part of giving an employee feedback on their performance. There has been a significant shift in performance management in recent years. Employee feedback is a powerful way of motivating employees, however in most companies it has become an administrative process, rather than being an opportunity for the employee to do a self-assessment and sharing feedback with their manager. If you asked to participate in a performance appraisal, it is helpful if you agree with your supervisor on the process beforehand, so that you are well prepared so that you can fully participate in the appraisal of your performance - after all, you have been experiencing the role firsthand.

In conclusion, both these processes share one characteristic, receiving feedback. Assessment is useful to understand an employee's potential; and Appraisal assists to understand an employee's current performance. There is a clear correlation between these two factors - potential and performance. Like champion athletes, an employee with high potential could also be a top performer.