Performance reviews are important, invaluable tools for business owners to keep staff working smoothly and on track. The days of a point based rating system are long gone. The most effective performance review strategies are tailored to the business and focus on factors that are important to an individual business owner.
For example, in some countries employers value work-life balance highly and employees who are perceived as spending too much time at the office may be counseled against continuing to do so. However, regardless of the individual preferences of a business, there are some points of consideration that are universally helpful when reviewing employees.
Start with Goals
While the phrase “performance review” implies a rehashing of an employee’s previous work, its most important function is as a tool to promote better future performance. As such, laying out a future plan of action is an integral part of the review process. When employees have a clear idea of what is expected of them, they are far more likely to perform effectively. Additionally, knowing the review will focus on strategy and planning will alleviate a great deal of the anxiety employees may feel about an impending review.
When an employee’s past performance is up for discussion, nothing in the review should be new information. If they have a particular failing that’s becoming problematic, it should have been brought to their attention immediately rather than held onto for the performance review. The review is the time to evaluate whether improvements have been made. Additionally, if an employee has done something well, they should be praised for their work immediately. No one wants to be blindsided with critique or feel as though their successes have gone unnoticed.
Performance feedback is critical to the growth of any business or individual employee. Stay tuned for more helpful tips to create an effective performance review strategy.