It is that time of year when firms across the UK are looking closely at the past year’s performance of staff (via the performance appraisals process) and setting new objectives for the year ahead.
These reviews are often linked to salary and bonus review for the same periods. Making sure that managers have acted with integrity and given all the support at their disposal (to make sure their teams have been able to achieve their objectives throughout the year just gone), is paramount. It is not too late to give greater levels of guidance to appraisal managers.
For the last 6 years or so, the FCA have been guiding firms to increase their leader’s level of intelligence about poor performance management practices. Despite the benefits of good performance management, there will always be an inherent risk on poorly executed performance management. This lack of good practice can encourage or drive mis-selling because of pressure to meet targets and objectives. Many employees may be feeling an undue level of pressure to meet their targets and objectives and this risk can affects a firm’s customers and their image to the wider business world.
There continues to be a risk to firms where some still remunerate individuals for performance in carrying on unregulated activities that are financed by credit agreements in respect of which the firm is carrying on consumer credit lending or credit broking. In layman terms, incentivising an individual to sell or supply services which may be financed by less reputable forms of credit.
If you would like to start this year off on the right foot and get set for what is going to arguably be another hard year for businesses, speak to the team at IHRS. With over 40 years’ insurance sector experience, the team are skilled at quickly assessing the way appraisals have been conducted in your business. They can give you guidance on how to strengthen the closing review for staff (without the need to rewrite them) and they can give you critical guidance to getting it right for 2022.
If you need any assistance with the appraisal process, please contact the IHRS team who will be happy to help. Email HRhelp@ihrsolutions.co.uk, call 01604 709509 or visit our website.