You might be surprised at how many companies do not effectively conduct annual performance reviews. Too often, companies have them, but they turn out to be rushed paperwork sent to HR with the employee out the door in minutes. The impression this gives the employee is bad. Often, poor performance reviews can leave the employee feeling as if their boss—and company—are not particularly interested in their long-term goals. Top talent might even stop to think “Why should I stay?”
Benefits of Reviews
An annual (or bi-annual) performance review is an important opportunity for employers and employees to discuss career development. A lot of bosses do not engage with the employees about their position and potential. Employees want to have a discussion about their role in the company and what it means for their future. If your team believes there is a path forward for them, they are more likely to stick around; and performance reviews can assist in your retention efforts.
Performance reviews also help identify goals, communicate the company’s goals and support the alignment of those goals. It is a dialogue, not a lecture. In addition, performance reviews are a basis for rewarding personnel or a way to address less than ideal performance and how it can be improved. Performance reviews reinforce accountability and help short circuit problems.
Giving a Proper Review
Be sure to pick a private location for the review and set aside adequate time to meet. As a general rule, performance reviews are 30 minutes to one hour per person. During a performance review, you have a number of responsibilities, some of which include:
- Being professional and focusing on performance issues
- Providing constructive feedback, including both negative and positive items
- Using specific examples
- Describing any changes in performance needed and ensure the employees understands the expectations
- Permitting time for the employee to ask questions and have input
While it is a good idea to give your employee feedback whenever possible, a performance appraisal is a formal way to address employee standards and goals. The ultimate objective of a performance appraisal is to help align individual performance with the company’s expectations. This open exchange of information is necessary to enhance skills to better your employee and the entire company.
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