Conducting performance reviews is an important tool for keeping your business running smoothly and bringing the best out of your employees.
Also referred to as a performance appraisal, performance evaluation, development discussion or employee appraisal, this is a method by which the job performance of an employee is documented and evaluated.
Research shows that employee performance is 10% lower in organization that do not conduct and utilize performance reviews.
In the past, many organizations traditional conduct annual review, however more companies are moving toward frequent feedback performance management in which managers conduct quarterly, monthly, or evenly weekly evaluations.
Regardless of how frequently or in what manner your company conducts performance reviews, employee evaluations should benefit employees and managers alike. There are many ways to design and implement a performance review, however it should be tailored to the size and structure of your company.
Most performance reviews include assessing the following skills:
Collaboration and teamwork
Quality and accuracy of work
Attendance, punctuality, and reliability
Employee’s accomplishments and contributions
The ability to accomplish goals and meet deadlines
Any company specific or position specific competencies
Here are reasons to hold performance reviews regularly:
To improve overall work performance
Taking the time to analyze the work produced by your staff allows you to see whether employees are achieving expected levels of performance, while highlighting any areas that may need more attention. As a manager, this is an opportunity to communicate expectations with your team and provide important feedback and encouragement.
To increase employee engagement
By reviewing the performance of each employee at periodic intervals, your staff will gain a greater understanding of how their position contributes to the goals of the company and are likely to become more invested in the outcome. Employees learn about their strengths and weaknesses, while feeling comfortable to ask questions and provide feedback to their managers.
To identify promotion opportunities and/or training needs
A great performance review helps employees identify growth opportunities and potential areas of improvement, without damaging employee-manager relations. This is a chance to discover areas where new hires should receive more training and/or experienced employees need refreshers. It is crucial to help employees create benchmarks to track progress and set internal deadlines for each stage of performance.
To strengthen relationships and loyalty
By setting aside intentional time to talk in-depth with each member of your team, you are positively impacting your relationship with each staff member. Be sure to praise good performances, reward hard work, and listen to any complaints, questions, or concerns. By initiating open dialogue, you can strengthen employee relationships and gain insights into how you can improve employee retention.
Your business’ success relies on the efforts of each member of your team. Employee reviews help increase engagement, strengthen relationships amongst the organization and improve the company’s overall work performance.