Annual performance review: compulsory or not?
It's a question that many managers ask themselves: is the annual appraisal interview 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 within a company, not all of them are legal obligations.
Find out more about the specifics of the annual appraisal interview, and some practical advice to help you organise it so you get the most out of this HR management tool.
Is the annual appraisal interview compulsory?
Is it a legal requirement for your employees to undergo an annual appraisal? The answer is no. The Labour Code does not make it compulsory:
- Contrary to certain preconceived ideas, it is actually a managerial practice and an internal policy specific to the company. The annual appraisal interview is not a legal obligation, unless otherwise stipulated in the company's collective bargaining agreement or branch agreement, in which case the employer is obliged to comply with the provisions set out therein.
- There is another exception: all employers are obliged to assess their employees who are covered by a fixed working day agreement.
- In addition, the company 's social and economic committee (or CSE) must be informed and consulted when annual appraisal interviews are introduced.
- Finally, employees must be informed of the methods used to assess them during the interview:
The employee is expressly informed, prior to their implementation, of the professional assessment methods and techniques used in relation to him/her. The results obtained are confidential.
Article L1222-3 du Code du travail
ℹ️ Given that the annual appraisal is not compulsory, there are no penalties for companies that fail to introduce it.
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 interview?
Employee annual appraisal: what does it involve?
This exercise, also known as the individual annual interview or appraisal interview, involves assessing the work of 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 system for assessing the performance of its employees, all employees are affected, regardless of their status or the specific features of their employment contract.
The objectives of the annual appraisal
The annual performance review is an opportunity for employees to discuss their performance with their manager. This exercise helps to improve the performance of employees, managers and the company.
Indeed, taking stock of the past year helps to better manage talent within the company and avoid excessive staff turnover.
Its main objectives include
- taking stock of the past year, by reviewing the highlights ;
- assessing the business skills and professional qualities of your employees;
- monitoring the progress of each employee by measuring the extent to which they have achieved their objectives;
- listen to employees' wishes and plans for the year ahead;
- identifying areas for improvement and gathering their needs to help them become more autonomous, more effective, etc. ;
- discuss the resources to be put in place, such as training proposals to support their development and increase their skills;
- putting in place, by mutual agreement, corrective measures or an action plan to follow up on this assessment.
Who should carry out the annual performance review?
As a general rule, it is the manager or supervisor of the person being assessed who is responsible for conducting the annual review.
👉 If this is one of your tasks, here are some tips and best practices for getting organised.
Tips for organising the annual appraisal interview
- Planning the annual appraisal interview: there are no precise rules as to how it should be planned, but as the name suggests, this exchange takes place once a year, generally at the beginning or end of the year.
- Preparing for the annual interview: you can use the skills framework drawn up by the company's human resources department to assess the skills that your employees have mastered and those that can be consolidated. Here is an example of an annual appraisal interview that you can follow:
- I/ Assessment: evaluation of the 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 year ahead: measures, actions to be implemented, etc.
- V/ Conclusion: final points to be raised, end of interview.
- Summarising the discussions: after the meeting, you should produce 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 the employer and the employee.
- Using HR software: to simplify your annual appraisals, you can use an HR solution such as ServicesRHOnline, which makes it easier to set up your annual appraisals and produce a report. More broadly, this HR tool enables you to manage skills and monitor performance indicators, an asset when it comes to implementing your action plans for individual employees.
Example of an annual appraisal interview [+ template]
Here is an example of a completed annual appraisal interview form:
To help you prepare for your annual appraisal interviews, it is advisable to use a summary document, such as an appraisal grid, which summarises all the points to be covered. Appvizer offers you a free download of a sample interview outline:
What should I do if I refuse to take part in the annual appraisal interview?
If you, as the employer, decide to set up individual interviews, the employee cannot refuse to take part. If the employee refuses to attend, sanctions may apply, amounting to insubordination, which is grounds for disciplinary dismissal.
☝️ You should also know that the presence of an HR representative or staff representative cannot be requested at the annual appraisal interview.
The annual appraisal interview... and then what?
An annual appraisal interview assesses the skills and progress of your employees, and aims to improve performance at both an individual and a team or organisational level.
If positive, the appraisal can lead to promotion, a bonus, a training session or even a raise.
You may decide to monitor the employee's progress on a more regular basis, so that you can take action more quickly if necessary. Choose, for example, to set up a one-to-one meeting every month. The advantage of this is that employees can also regularly monitor their own progress, which is a source of motivation.
Article translated from French