Leveraging GenAI to Elevate Performance Appraisal Programs

Continuing on the theme that we should use GenAI tools, like ChatGPT, to improve how the department works, and not just how individuals work, this week I wanted to show how you can significantly improve the way performance appraisals are conducted, without yet integrating GenAI with other systems, and thus making it approachable for everyone. 

Below are some specific, practical ways that HR professionals and line managers can leverage GenAI tools to create more effective and streamlined performance review processes. I have included prompts for each use case to show how GenAI can be harnessed to improve efficiency and personalization in performance appraisals.

By using these GenAI ideas, HR professionals can develop performance appraisal systems that are more data-driven, fair, consistent, and customized to the unique needs of each employee.

1. Objective Setting Guidance

AI can help both employees and managers in setting clear, actionable goals that align with company objectives. Here's how to use it:

• Prompt for SMART Objective Setting: “Create 5 SMART (Specific, Measurable, Attainable, Relevant, Time-bound) objectives for a [role title] in [department], considering their previous performance [include past performance appraisals] and current company/department goals [include company and/or department goals] . Include stretch target metrics for each objective that can be tracked over the next quarter.”

• Example Output:

  • Increase client retention by 10% by Q4 through a structured feedback system.

  • Complete a project management certification by the end of the year to improve cross-departmental coordination.

• Prompt for Personalized Goal Suggestions: “Based on the employee's performance in the last two review cycles, suggest 3 growth-oriented goals for the next 6 months that are aligned with their current role as [role title] and the department's strategic goals [include department goals].”

• Example Output:

  • Expand product knowledge by attending two industry seminars in the next quarter.

  • Increase team leadership experience by leading two cross-functional projects within the next six months.

2. Peer Feedback Facilitation

Creating a robust feedback system is critical for employee development. AI can help generate, collect, and facilitate actionable feedback.

• Prompt for Peer Feedback Form Creation: “Create a peer feedback form focusing on communication skills, teamwork, and leadership abilities for an employee working in [specific role]. Include sections for anonymous comments and ratings on a scale of 1 to 5.”

• Example Output:

  • Rate the employee's ability to collaborate with the team: [1-5]

  • Provide examples of how this employee contributed to the team's success.

• Prompt for Scheduling Feedback Sessions: “Generate an automatic feedback session schedule for [employee name] with three peers from the [department] department. Set reminders for the peers to submit feedback a week before the performance review meeting.”

3. Progress Monitoring Check-ins

AI-driven check-ins ensure that goals are being tracked consistently and provide data-driven updates for managers and employees.

• Prompt for Check-in Meeting Schedule: “Create a bi-weekly check-in schedule between [employee name] and their manager. Include discussion points on the progress of [specific objectives] and any potential roadblocks.”

• Example Output:

  • Review the progress of the client retention objective.

  • Discuss any challenges faced with project management certification.

• Prompt for Progress Report Generation: “Generate a performance progress report for [employee name] based on their current goal tracking in [HR software]. Highlight achievements, areas for improvement, and any resources needed for the next month.”

4. Strengths and Areas for Improvement

GenAI can streamline self-assessments and help managers provide structured feedback.

• Prompt for Self-assessment Tool: “Create a self-assessment template for [role title] that includes sections on strengths, areas for growth, and personal achievements. Include a rating scale and space for specific examples.”

• Example Output:

  • Strengths: Rate your leadership skills: [1-5]. Provide an example where you demonstrated leadership in the past six months.

  • Areas for Improvement: Describe one area where you feel you could improve, and how you plan to address it.

• Prompt for Manager Feedback Framework: “Generate a feedback framework for [manager name] to use during [employee name]’s performance review. Focus on their performance in teamwork, leadership, and goal completion. Provide specific examples where possible.”

• Example Output:

  • Leadership: [Employee name] effectively led the Q3 project, ensuring that timelines were met and that the team stayed aligned. However, improvement is needed in delegation, as team members felt underutilized.

5. High-Potential Employee Recognition

Identifying and nurturing high-potential employees is crucial for talent retention and growth.

• Prompt for High-potential Employee Identification: “Analyze the last year’s performance data for [employee name] and generate a list of high-potential indicators based on leadership, initiative, and performance metrics. Recommend two development opportunities tailored to their strengths.”

• Example Output:

  • [Employee name] demonstrated exceptional leadership during the product launch, showing an aptitude for managing large projects. Consider enrolling them in advanced leadership training or assigning them to mentor junior employees.

6. Performance Improvement Plans (PIPs)

AI can assist in structuring improvement plans that are clear, measurable, and supportive of employee development.

• Prompt for PIP Creation: “Generate a Performance Improvement Plan (PIP) for [employee name] focused on [specific areas, e.g., time management and meeting deadlines]. Include clear objectives, timelines, and resources for support.”

• Example Output:

  • Objective: Improve time management by completing project deliverables 3 days before deadlines for the next three months.

  • Support: Weekly check-ins with [manager name], and access to time management training resources.

• Prompt for Regular Check-ins for PIPs: “Schedule weekly check-ins between [employee name] and their manager to track progress on the PIP. Include space for feedback on completed tasks, areas that need improvement, and future goals.”

How to Implement These GenAI Prompts for Effective Performance Appraisals:

1. Customize the Prompts: Tailor these AI prompts to suit your organization’s culture, objectives, and specific employee needs.

2. Continuous Feedback: Use AI tools to collect feedback on the performance review process itself and refine the prompts based on feedback from managers and employees.

3. Personalize the Experience: Ensure that the output from AI tools is personalized and actionable, providing real value to employees and managers alike.