Every business, regardless of the size, should conduct employee performance reviews at least annually.
The performance review process gives employers a chance to let employees know that they are valued and that their efforts are appreciated, and it also affords an opportunity to address any areas that may need improvement.
As an employer, it's not easy to have to tell an employee that there may be aspects of their performance that you are not happy with, but it is essential for overall productivity and job satisfaction, and will significantly impact the success of your business.
It is important to establish good honest two-way communication in your employee reviews. You can overcome the uncomfortable aspects of the review by sticking to a few simple guidelines, which can help you conduct successful and effective employee performance reviews.
1. Don't improvise the interview.
Be prepared. Have a written agenda and script outline for the meeting, and familiarize yourself with it and so that you can carry on regardless of the employee's response to any negative comments.
2. Start with small talk.
A bit of small talk can help put both of you at ease. Familiarize yourself with the employee's interests, hobbies, etc. Do they run regularly? Are they dog lovers? Do they enjoy hiking? These are all good talking points for conversation.
3. Summarize the employee's overall performance.
The summary should kick off the interview portion, so that the employee will not spend the rest of the review trying to figure out where they stand. The employee may want to discuss their rating immediately, but try to put this off until after you thoroughly review the employee's overall performance.
4. Review the employee's strengths first.
Reaffirm the importance of the employee's contributions to your business before dealing with any weaknesses.
5. Suggest potential areas of improvement.
Unless the employee's performance is truly exceptional, there are probably at least some areas that show room for improvement. When reviewing weaknesses, be as specific as possible, citing examples, particularly if discussing a general topic like an employee's overall attitude.
6. Do not be confrontational or argumentative.
Do not offer personal criticism. Your goal is to evaluate the person's work performance and to improve employee morale. Suggest ways in which you can help the employee attain a better performance level, such as additional training, etc.
7. Give the employee a chance to provide their thoughts and input.
This will help the employee understand that you value their opinions. This open atmosphere will encourage employees to discuss any real concerns they have and and give you an opportunity to address those concerns in a satisfactory manner. There may be work-related problems you are unaware of that are creating impediments for the employee to attain their performance goals.
8. Confront issues head-on.
The employee may take issue with your assessment. In that case, let them know that while you understand that they may not agree with you, this will not affect the review.
9. Be consistent in your reviewing approach.
All employees should be reviewed on the same criteria, relative to their job requirements. Exemplary efforts should be praised, and weak performers should be informed of the areas in which they need to improve.
10. Detail upcoming raises or promotions.
If a raise or promotion is forthcoming, give the employee details of the raise / promotion and the date on which it will become effective. This will go a long way to help the employee's level of job satisfaction.
11. Look to the future.
The review process offers an opportunity to discuss the employee's future career plans and to examine what avenues of advancement may exist within the company.
12. End the review on a high note.
Unless the employee's performance is particularly unsatisfactory, you should always end the review on a positive note, confirming how much the company values and appreciates the employee's efforts.
13. Conduct employee evaluations on a regularly scheduled basis.
This policy ensures that everyone in the organization knows when to expect them and avoids the unnecessary stress and anxiety of conducting a review only when necessitated by an employee's poor performance.
Conclusions
Employee reviews should boost morale and help sustain a high level of performance and productivity. If your staff feels appreciated and adequately compensated for their efforts, their job satisfaction increases, turnover levels are minimal, and employees are motivated to do their best.
An Employee Evaluation Form is a valuable tool to help you record your thoughts, comments, questions and discussion points throughout the performance interview.
