Employee performance reviews help employees feel more valued and engaged, as well as assist the company in achieving its goals. However, they are ineffective unless done correctly.
Navigating an employee evaluation is a complex process, and it necessitates sensitivity and thorough planning. Understanding how this process works will help you run performance reviews with the most efficiency.
What is an employee performance review?
An employee performance review (or a performance evaluation or an employee assessment) is a process that allows employers to evaluate their employees on a regular basis and make sure that they are meeting all of the requirements for their position and how their work contributes to the company’s goals. Workers also have the opportunity to talk with their supervisor about anything they’re unsure about. They may also complete a self-assessment during the review process.
In a contemporary feedback culture, performance evaluations are merely one of the several events when praise and constructive criticism is provided. Employee review adds to existing feedback discussions and gives a clear work plan.
Performance review types
Employee assessment can be divided into four types:
- Annual or bi-annual performance reviews. Such reviews often become overly long and involve too much information, making them difficult to manage or to make a fair assessment of an employee’s efforts. They are focused on the past rather than future performance, also leaving employees without feedback for a whole year or a half. That’s why this type of employee review is being constantly replaced by more frequent ones, as described below.
- Quarterly appraisals. Three months is enough for an employee to meet their objectives as well as improve their organizational skills. Combining monthly /weekly/fortnightly performance evaluations together every three months to make an employee’s progress report for review at the end of the quarter helps for a better assessment.
- Monthly performance evaluations. This is something that HR executives may be unaware of, as they are focused on the organization’s bigger objectives. Monthly performance reviews are encouraged for small businesses and individuals who work on a project-to-project basis, such as freelancers or contractors. Monthly employee evaluations can also help new projects get off the ground smoothly by identifying potential issues early and addressing them before they become more significant problems.
- Weekly assessments. This is the most frequent evaluation type, yet it’s commonly used only in big organizations with hundreds of employees where such a feedback system is required to maintain high standards. Weekly performance reviews are critical for maintaining records and ensuring that a project, particularly an agile or rapid-moving one, stays on schedule week by week.
This guide will help you prepare for an employee performance review and navigate through this process successfully.
Why is it necessary to conduct an employee performance review?
Employee evaluations can have a significant influence on your employees’ performance, and the success of your teams and company. Performance reviews can help improve employee engagement and retention.
For team members
Employees want to know their progress in the company, as well as how to develop further. As a result, expectations influence employee engagement. Performance evaluations provide workers and their supervisors the opportunity to discuss what’s working and what isn’t, as well as settle on a strategy for the future.
For the business
Employee reviews assist you as a manager in assessing team efficiency and providing them with a clear picture of each person’s performance. You’ll learn about your team’s strengths and weaknesses, how to set goals, where they require assistance, and the potential to reach bigger goals. Research says that employees who received no feedback had a 14.9% greater chance of quitting than those who received strength feedback.
As for the company as a whole, if employees are connected with the company’s values and are pursuing a clear route to their own success, the business will succeed in achieving its objectives and goals. Research found that companies with constant performance assessments often surpass those with traditional annual/bi-annual reviews by 66%.
Key tips for the manager
An employee evaluation should be a two-way conversation that allows you to offer and receive positive and negative feedback on a worker’s performance, specify goals, and consider their professional growth. Reviews are not designed to be a plain criticism or the opportunity to fix every single problem of a staff member’s performance, and everyone should leave with a good attitude. If an employee knows that their manager is open to discussion and considers what they say, they are more likely to stay with the company and work harder.
Preparation
1. Free your schedule
If you are meeting with employees one-on-one, make sure your calendar isn’t going to be disrupted by other things. To minimize the risk of being late or having to put off the review, try to keep commitments to a minimum as soon as possible in the day. Team members will understand that you value their input as much as they do.
2. Prepare for an employee feedback
Make sure you schedule enough time for the employee to provide their feedback and something to write it down for a later revision.
3. Revise worker’s info
Go over the employee’s experience data (hiring documents, past recognitions, survey responses, 1-to-1 meeting notes, etc.) to get a better look at their performance. Skim your notes from the most recent review with the employee to see what occurred last time before the meeting. This will help you structure the review more effectively and avoid repetitions.
4. Be ready to answer off-topic questions
As it is a two-way conversation, a performance review is also a chance for the employee to address concerns or deliver news since they are one-on-one talks. Even if the subject isn’t relevant to the review itself, listen carefully and set up a future discussion if necessary.
Review structure
What should you include in an employee performance review to boost its efficiency?
- Self-evaluation. The employee’s self-review will aid you in comprehending how they see themselves. It also gives you a sense of what will be discussed in the meeting. Such practice supplies the information to set your expectations and steer the dialogue.
- Performance assessment. The performance review should cover the employee’s role in detail. These evaluations show in detail whether the team member performed in accordance with the organization’s culture. It also aids in the further management of their core strengths.
- Evaluation of employee performance goals. The manager explains how the team member performed or did not perform up to expectations. Managers should be precise and provide instances at all times. This will assist the employee in seeing specific examples that are related to their job.
Conducting the review
Here are a few sample areas of focus to help you with preparing your employee assessment criteria:
General
- Greatest strength
- Areas for improvement
- Meeting deadlines
Communication
- Communicates precisely and openly.
- Listens actively to others’ opinions.
- Their communication is adapted to the demands of the audience.
Achieving goals
- Establishes challenging objectives for themselves.
- Overcomes difficulties and obstacles to reach his or her goals.
- Prioritizes their job based on the demands of the business and its customers.
- Participates in the interests of others.
Working in a team
- Respects other employees.
- Cooperates well with other team members.
- Has a positive attitude and respects individual differences inside the team.
- Gives useful feedback.
Values
- Provides a pleasant work environment.
- Is a role model or tries to be alike.
- Carries out the company’s fundamental values every day.
Leadership
- Assists team members in resolving workplace troubles and concerns.
- When making choices, considers the ideas of the team.
Question examples
Asking the right questions is key to focusing on crucial topics for both the company and employees. Here are some of them:
– What are your biggest accomplishments from the previous quarter?
– What are your objectives for the next three months?
– What are your current challenges? What are the most significant hurdles you must overcome?
– What do you require from the department to accomplish your objectives?
– In what ways have you tried to improve your skills?
– What training would you like to receive or courses to attend in the next six months?
– What are your career aspirations for the long run?
– Do you have any ideas for process improvements in the department?
– What should I do to be a better manager?
– In what ways has the company contributed to your professional development?
– What do you think we could do to better support your development?
These are only examples, so feel free to add or remove questions as you see fit. The most important thing is that the questions help move the review forward in a positive and productive way.
The final stage of every performance review is wrapping up. This usually includes setting goals for the next review period, which gives employees something to strive for. It’s also an opportunity for managers to provide feedback on the review itself and how it can be improved.
Ending on a positive note is essential, so make sure to thank the employees for their time and reiterate your appreciation for their hard work. This will help them feel valued and appreciated and encourage them to continue doing their best.
Alternative performance reviews
Performance reviews are not the only way to assess employee performance. If you’re looking for alternatives, here are a few options:
360-degree feedback
This type of feedback comes from multiple sources, including colleagues, customers, and superiors. It provides a well-rounded view of an employee’s performance.
Check-ins
These are informal conversations between managers and employees that can be done weekly or monthly. They’re designed to discuss progress, challenges, and goals.
Employee self-reviews
This is when employees assess their performance. This can be done using a standard form or template or simply by writing down their accomplishments and areas for improvement.
Peer reviews
Like 360-degree feedback, peer reviews gather input from an employee’s colleagues. This type of feedback can benefit those who work in team-based environments.
The future of employee performance reviews
A review is a form of assessment that has been used in business since the beginning of time. It’s only natural that their use should continue to develop in the future.
Companies are shifting towards the increasing frequency of employee performance reviews, leaving the practice of conducting only annual/bi-annual assessments behind. A few businesses are considering ways to improve their performance evaluation approach. In contrast to conventional appraisals, which evaluate past success, this is in line with trends toward a future-oriented review technique. Most businesses no longer use paper versions of reviews. They now use sophisticated performance management software systems to simplify the review process. We will tell you more about performance management software in the next article!
Performance reviews are an essential part of any business, but they don’t have to be painful. By following the tips in this guide, you can create an employee review process that is objective, fair, and helpful for both employees and managers. And most importantly, you can use such reviews as a chance to boost your business and help your employees reach their full potential.
Contact us if you have any questions or would like a consultation on performance reviews! See our software development services, available for outsourcing.
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