Without an annual Service, would you expect your car to keep performing at it's best?

Posted on 25 April 2022 by Ian Mundy

No. . . So why is it different with people? Employers should be able to ensure that their employees at least have an annual performance appraisal.

54% of respondents from a recent survey You HR has run, said that they are not regularly undertaking quarterly or annual performance reviews with their employees. A whopping 58% confirmed that they are limiting opportunities to ensure individuals’ objectives align to those of the organisation to optimise performance and, that they are missing opportunities to ensure personal development needs, future aspirations, career development and succession plans are understood and acted upon.  

Furthermore, 56% responded to say that they are either not undertaking annual pay reviews, or undertaking these fairly and consistently across their organisation, or using performance appraisals as a core area to determine pay increases.  

With the Office of National Statistics (ONS) reporting the highest consumer price inflation increases (5.5%) in almost 30 years (including the rise in energy bills, food and fuel prices), and this being set to rise again for 2022, this undoubtedly is impacting on the ‘Cost of Living’, despite the shift in trend of more home working as opposed to travelling to work. 

Our research (Thomson Reuters being a key source) has shown that most industries are preparing for a rise in pay increases of around 3% on average, and the National Living Wage looking to increase by 6.6%. These are the largest pay increase the Nation has seen in over a decade. 

Some employers are preparing to offset the gap of pay increases not meeting the rise in cost of living, through enhancing flexible working opportunities, training and health and wellbeing, as alternative ways to support and retain employees. 

The CIPD surveyed 1,006 employers between 6th – 30th January this year, with four-fifths reporting they plan to make a pay increase in 2022. 40% of which will make a basic increase and 7% advised they will ‘freeze’ pay, with 1% confirming they expected to make a pay decrease.  

If you need a hand to ensure you have a meaningful performance appraisal system in place, part of a wider framework that truly connects with your organisational objectives, values, behaviours, standards, pay, and aligns to your future organisational development direction, let us help.  

A key part of our Exclusive Retained service involves undertaking an HR Audit of your core policies and processes (such as appraisal) to identify what’s working well and what needs to improve, from a best practice compliance perspective, and also in ensuring your future people plans align to your organisational needs. 

We take great pride in getting to know the #PublicSector, #NotforProfit and #SME clients we have the pleasure of creating bespoke workplans for that enables their organisation to flourish and grow.  

Get in touch by clicking here and book a FREE confidential, no obligation HR Consultation to find out how we can help You! #itsallaboutthepeople 

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