It's important to find a time to review your pharmacy business plan and to start to identify targets and plan for the next 12 months. This is also an ideal time to be thinking about performance appraisals for your pharmacy team.

Spend some time reviewing what your team has done well and what they can improve or change. Make plans for the year ahead for the development of the individuals who you manage.

The benefits

Annual appraisals often focus on two things: performance and a review of pay. Ideally, these should be kept separate, as discussing the important issue of someone’s pay can often mean that they do not focus on their development. This article will focus on performance appraisals.

Many people will have had an experience of an annual performance appraisal that was less than positive. They might have undergone a lacklustre appraisal where their manager had no enthusiasm for the process and was clearly going through the motions. Alternatively, their manager may have presented them with nothing but negative feedback.

Annual appraisals, undertaken properly, are essential for the effective management and evaluation of staff. They are a tool to develop individuals and improve business performance. They provide a formal, recorded regular review of an individual’s strengths and weaknesses and a plan for their future development. They provide an opportunity for an open discussion without distractions, focusing on improving performance and motivation.

Appraisals are also important for performance management, especially where poor performance may lead to disciplinary action and dismissal. Records of appraisals would be expected by an employment tribunal should a dismissal be challenged.

In smaller businesses, appraisals are sometimes dismissed as an activity only needed in large companies; something that is too complex for a business that needs to stay simple. However, appraisals need not be complicated and, when undertaken effectively, bring a range of benefits that will improve business performance and profitability. These include:

• Providing performance measures to help improve a team member’s ability to deliver the expected level of service
• Identifying learning needs effectively
• Motivating team members through the recognition of achievements
• Clarifying business aims and developing an understanding of an individual’s role in achieving business goals
• Clarifying roles and expectations
• Identifying and resolving relationship problems within the team
• Motivating with clear aims and targets.

A formal appraisal also provides the opportunity for managers to get feedback about their own performance, which can contribute to their continuing professional and personal development. Team members can also share their thoughts on how the business could operate more effectively. If this type of feedback is sought, it is important that you reflect and provide a response to the feedback given. It can be highly demotivating to be asked for feedback and then for it to appear to be ignored.