How to deal with appraisal shocks gracefully

Studies have indicated that a significant number of employees across the world, about 60%-85%, would consider quitting or actively seek new jobs after experiencing an unfair or poorly conducted performance appraisal, as they feel unappreciated.

More than half of these employees were either "very likely" or "extremely likely" to leave their current positions following a poor appraisal. Further, 25%-30% of them felt that inaccuracies in their performance reviews led to missed promotion opportunities, studies pointed out.

Moreover, poorly managed appraisals can lead to lower engagement and motivation level. Studies said that two-thirds of such employees, who feel their contributions aren't recognised, might start looking for new opportunities.

This highlights the importance of performance reviews in employee engagement, retention, and overall morale. Here’s why such a high percentage of employees feel compelled to leave their jobs following a poor appraisal.

Why people leave after appraisals

Perception of unfairness: If employees perceive their appraisal as unfair or poor, it can lead to feelings of distrust toward the management, creating a toxic work environment where they feel undervalued or unappreciated.

Lack of clarity: Employees may feel uncertain about their future prospects within the company, if the performance reviews are vague, or lack clarity. Performance appraisals are supposed to provide them with clear feedback and guidance.

Low on motivation: A poor appraisal can lead to a drop in motivation and engagement level. Employees are likely to feel that no matter how hard they work, their efforts would get unnoticed or unrewarded. This can drive them to search for another job.

No trust in leadership: When appraisals are poor, one’s trust in leadership gets significantly impacted. Employees may feel that the management is not capable of taking fair decisions.

Confusion over career progression: If employees feel their appraisal will affect their chances for promotions, or career advancement, they start looking for companies where they feel their growth will be supported.

Impact on workplace environment: Poor appraisals can contribute to a negative workplace environment. When employees see their colleagues being treated differently, it may affect the team morale and overall productivity.

How to deal with appraisal shocks

To cope with appraisal shocks, employees can ask for clarification from their managers, stay positive while receiving the feedback, be proactive in taking up work or projects, and stay connected with their colleagues during the challenging time. Here are a few more tips for handling the difficult situation. 

Stay calm: When you receive unexpected negative appraisal, you should stay calm, take a deep breath, and listen to your inner soul. This will help you approach the situation with a clear head without being swept away in emotions.  

Seek clarification: If you feel your appraisal is unfair, ask your manager for more details, examples, and the reasons behind it. This can help you understand the root cause and areas for improvement.

Don’t get defensive or personal: Avoid personal attacks or getting into any argument while receiving the feedback from your manager. Feedback is constructive criticism most of the time, and is meant to help you improve.  

Listen to things with an open mind: Even if you disagree with the feedback you receive, try to analyse things with an open mind whether there is any truth in it. Acknowledge the points that are valid, and think about how you can address the issues. 

Develop an action plan and align it with your goals: Once you are clear about the feedback, develop an action plan about how you can improve your performance. You must set clear and measurable goals moving forward with your plan and ask for help when required. 

Maintain a positive attitude and do follow ups: You are likely to feel discouraged at work after an appraisal shock, but maintaining a positive attitude is the key. Focus on your work, and remind yourself of your strengths and achievements. Optimism and resilience go a long way in overcoming setbacks.

If you make changes based on the feedback, follow up with your manager to let him know. This may help the manager improve his perception towards you.