Human Resources 101

Performance reviews are about as much fun as a root canal without any anaesthetic. Employees don’t like getting reviewed and managers resist reviewing. In addition, there is debate within the business community as to whether performance reviews are even effective.

Personally, I’m not convinced of the effectiveness of performance reviews as part of the wage and salary process, but I do think they are an effective part of the performance management toolkit. The review process can serve to encourage employees who are doing a good job, or it can help improve employees who are having difficulties.

Here are 6 steps that can maximize your review process:

1. Regularity – Performance management needs to be an ongoing process, day by day and week by week. Likewise, the annual review has got to be on a schedule; whether you follow an company-wide cycle or an employee anniversary date.
2. Preparation – When you, as the manager sit down to review your employees, have every bit of information you require. This is not a time to wing it. You should know which performance issues you are planning to discuss, what objectives you would like to set for the next period, etc.

   Preparation also means: scheduling in advance so the employee can prepare; allowing enough time for the review meeting, turning off the phone, Blackberry, e-mail, etc. and focusing on the employee.

3. Two-way assessment – Make the review a two-way discussion. Have the employee complete a self-evaluation and be prepared to discuss it. Ask the employee to set objectives for the coming year and work through them along with your objective for the employee.
4. Anecdotal support – Don’t merely point out the good, the bad or the ugly. Support your points with specific examples and cull those examples from the entire year, not the past three weeks.
5. Goal setting – Work through and set objectives. This is perhaps the most critical portion of the employee review. You are not merely grading the past year, but are setting the direction for the months ahead. Do not skimp on this step.
6. Encouragement – The end of the appraisal meeting marks the beginning of the next review cycle. It’s up to you to motivate the employee to continue doing what has been done well and to improve in the areas where there is room for growth. Even an employee who has been disappointed by the outcome of the review can be made to feel they are a valued part of the company.

There should never be any surprises at a performance review. If the supervisor has been doing their job properly, the performance review should be only a formal confirmation of what the employee has already been told.

Further reading:

• What’s to Be Done About Performance Reviews?
• 6 ways to measure worker productivity.