Clever RX
4 min read

Best Strategies for Employee Reviews

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Performance reviews are a valuable tool for an employer to assess their own business objectives and make sure that employees are aligned with company goals. Before employers review their staff, it’s a good idea to take the time to reassess their business strategy and set goals for their staff that align with their updated objectives. Performance reviews are a perfect time to give employees a better understanding of what is expected from them and how they can grow in their role at the company. Performance reviews, when carried out effectively, can improve employee morale, productivity, and job satisfaction. They also provide valuable insights that managers can use to spot talent and identify their staff’s training needs.

Reasons for performance reviews:

  • Boost employee morale and motivation
  • Identify areas of professional development
  • Improve communication between employer and employee
  • Reward top performers

Boost Employee Morale and Motivation

The performance appraisal process can have a significant impact on employee morale and engagement. Ideally, employees will feel valued and motivated about their future if the review process is conducted in a thoughtful, constructive manner. Evaluations often provide valuable insights to managers and employees, helping companies make decisions regarding bonuses, raises, promotions and other rewards. Allowing managers to define medium-term and long-term objectives for their team members and help them grow professionally.

Performance appraisal can also help employees reach their full potential by understanding their strengths and weaknesses and correcting undesirable behaviors. There are multiple reasons managers use performance evaluation systems, these are but a few:

  • Assess their staff against defined objectives
  • Address performance issues
  • Manage changing roles
  • Highlight problem areas
  • Identify new ways to leverage an employee’s strengths

Professional Development

Professional reviews help management identify areas for training and development. Identifying individuals or departments that need professional development which will lead to a more productive organization.

Improves Communication

To nurture a healthy work environment many companies have chosen to forego annual performance reviews in favor continuous feedback. Setting clear expectations and communicating those expectations to employees throughout the year. Communicating consistently with employees and letting them know how to correct potential issues gives employees the opportunity to educate themselves and improve their weaknesses.

Reward Top Performers

Managers can use the information from performance reviews to identify employees who have contributed the most to the company’s growth and reward top performers. Rewarding your best people gives employees incentive and proves how much they are valued by the organization.

To be fair, it is important to have measurable data to prove the worth of top performers. Gathering data from multiple sources is the most effective means to support an unbiased evaluation. Providing evidence that managers are not showing unconscious bias against employees based on non-performance-related factors.

Beware of the Potential Pitfalls with Performance Reviews

The problem with performance reviews is that many employers have a difficult time finding a system that can accomplish their goals without bias and inconsistencies, causing frustration among employees. Managers don’t always rate their employees on objective criteria and employees may not receive quality feedback. Thus, making the whole evaluation process time-consuming and stressful for managers and employees. Poor communication, generic feedback and human error are all potential disadvantages of performance reviews.   Resulting in a workplace harboring unhealthy competition, high turnover, conflicts and disengagement.

Get More Value Out of Your Reviews:

  • Use standardized review questions (so everyone has a level playing field)
  • Use qualitative and quantitative data
  • Discuss personal performance but align it with an over-arching business strategy
  • Source feedback from variety of people. Removing bias from the review process.
  • Be constructive, not critical. Take the sting out of performance reviews – using a “build up” approach versus “break down”
  • Have a discussion, not a debate. Share the floor and listen to your employees reflections.
  • Stay engaged with follow-up with employee. Letting them know you care.

Lower turnover at your company with continuous and/or positive feedback. Communicating clear expectations making sure that employees are aligning their goals with company goals. Allowing managers to set goals and monitor goals for specific groups, individuals, and the company as a whole.

Choose a Performance Review Matrix that Works Best for Your Organization

Seek feedback from all directions with 360-degree performance reviews. 360 feedback allows the employer to seek input from all directions, including those inside and outside your company, and up and down the reporting structure. Feedback on an employee’s performance can also be gathered from outside sources, such as vendors or customers. 360-degree review is a professional feedback opportunity for a group of coworkers, subordinates, colleagues, and supervisors, as well as a self-evaluation by the employee themselves. 360-degree feedback allows each individual to understand how their effectiveness as an employee, coworker or staff member is viewed by others. It is easy to monitor and report on performance with flexible cycles that can be tailored to the needs of any organization. Connect individual, team, and company goals to the review and recognize results. Managers and supervisors can use pre-loaded review templates.

Conclusion

Performance reviews help employees identify and improve their skills. Reviews also give management the opportunity to set clear expectations for their employees. Giving employees a better understanding of what is expected from them and how they can grow in their role at the company. Setting standards and keeping the lines of communication open between management and employees is crucial to the continued the growth and success of any company.

For more information on performance review solutions customized for your business look to AAP’s Share and Perform.