Annual performance review: compulsory or not?
It's a question that many managers ask themselves: is the annual performance review compulsory ?
While there are a number of HR and managerial practices that can be used as part of a skills management and human capital development approach, not all of them are legal obligations.
Find out more about the specifics of the annual appraisal interview, and some practical tips to help you organize it and get the most out of this HR management tool.
Is the annual appraisal interview compulsory?
Is it a legal obligation to hold an annual appraisal interview with your employees? The answer is no. The French Labor Code does not make it mandatory:
- Contrary to popular belief, it is in fact a managerial practice and an internal company policy. The annual performance review is not a legal obligation, unless otherwise stipulated in the company's collective bargaining agreement, in which case the employer is obliged to comply with its provisions.
- A further exception is that all employers are obliged to evaluate their employees who are subject to a fixed working day agreement.
- In addition, the introduction of annual performance reviews requires the company's social and economic committee (or CSE) to be informed and consulted.
- Finally, employees must be informed of the methods used to evaluate them during the interview:
Prior to their implementation, employees are expressly informed of the professional assessment methods and techniques used. The results obtained are confidential.
Article L1222-3 du Code du travail
ℹ️ As annual performance reviews are not compulsory, there are no penalties for companies that fail to introduce them.
On the other hand, the absence of annual appraisal interviews can give employees the feeling that their appraisal and the definition of their objectives are not based on objective criteria.
💡 Unlike the annual appraisal, the professional appraisal is one of the company's mandatory appraisal interviews.
What is the annual performance review?
What does the annual employee appraisal entail?
This exercise, also known as the annual personal interview or appraisal interview, consists in assessing the work of your employees and drawing up a report on the past year, on an individual basis.
It is optional, except in the cases described above, and depends on the practices and policies of each company.
The people concerned
As soon as your company has put in place a performance appraisal system for its employees, all employees are concerned, regardless of their status or the specifics of their employment contract.
Objectives of the annual performance review
The annual performance review is a privileged opportunity for discussion between an employee and his or her manager. This exercise contributes to enhancing the performance of employees, managers and the company as a whole.
Indeed, taking stock of the past year helps to better manage talent within the company and avoid excessive staff turnover.
Its main objectives include
- take stock of the past year, reviewing the highlights ;
- assess your employees' professional skills and qualities;
- monitor each employee's progress by measuring the extent to which they have achieved their objectives;
- listen to employees' wishes and plans for the coming year;
- identify areas for improvement and gather their needs to help them gain in autonomy, performance, etc. ;
- discuss the means to be put in place, such as training proposals to support the employee's development and skills enhancement;
- mutually agree on corrective measures or an action plan to follow up on this assessment.
Who should conduct the annual performance review?
As a general rule, it's the appraisee's manager or supervisor who is responsible for conducting the annual appraisal interview.
👉 If this is part of your job, here are some tips and best practices to help you get organized.
Tips for organizing the annual appraisal interview
- Scheduling the annual appraisal interview: there are no precise rules as to how it should be scheduled, but as the name suggests, this exchange takes place once a year, usually at the beginning or end of the year.
- Preparing for the annual performance review: you can use the skills framework drawn up by the company's human resources department to assess the skills your employees have mastered and those that can be consolidated. Here's an example of an annual appraisal interview outline you can follow:
- I/ Assessment: evaluation of objectives and key moments of the past year ;
- II/ Skills assessment: business know-how, technical knowledge, interpersonal skills, etc. ;
- III/ Projections for the coming year: listening to desires, projects and possible training needs, etc. ;
- IV/ Setting objectives for the coming year: measures, actions to be implemented, etc.
- V/ Conclusion: final points to raise, closing the interview.
- Drawing up a summary of the discussions: after the meeting, you should draw up a report to keep a written record of the points discussed and the conclusions drawn from the assessment. Note that this document must be signed by both parties and remain confidential between employer and employee.
- Equip yourself with HR software: to simplify your annual appraisals, you can use an HR solution such as ServicesRHOnline, which makes it easy to set up your annual appraisals right through to the production of a report. More broadly, this HR tool enables you to manage skills and track performance indicators, an asset when it comes to implementing your action plans for individual employees.
Sample annual appraisal interview [+ template]
Here's an example of a completed annual appraisal interview:
To help you prepare for your annual appraisal interviews, we recommend you use a summary document, such as an appraisal grid, which summarizes all the points to be covered. Appvizer offers you a free downloadable interview template:
What can I do if I refuse to take part in an annual performance review?
If, as an employer, you decide to set up individual interviews, the employee cannot refuse to take part. If he or she refuses to attend, sanctions may be applied, amounting to insubordination, which is grounds for disciplinary dismissal.
☝️ Also worth knowing: the presence of an HR representative or employee delegate cannot be requested during the annual appraisal interview.
The annual appraisal interview... and then what?
An annual appraisal interview assesses the skills and progress of your employees, with the aim of improving performance at both individual and team/organizational levels.
A positive appraisal can lead to promotion, a bonus, a training session or even a raise.
You may decide to monitor employees' progress on a more regular basis, so that action can be taken more quickly if necessary. Choose, for example, to set up a monthly one-to-one meeting. This also has the advantage of enabling employees to regularly monitor their own progress, which is a source of motivation.
Article translated from French