Performance reviews are valuable for both employees and employers, but their effectiveness is highly dependent on how they are conducted. They can either empower employees to flourish, or they can drive them away from a business, resulting in a range of issues and complications. A commonly known fact is that a business is only as good as it’s people, looking after them should be a top priority.
What makes a great performance review?
A great performance review is future-focused. Although it is important to address issues and mistakes when they occur, this should not be the focus point for a great performance review. The objective of a great performance review is to identify an employee’s growth opportunities and potential areas for improvement without damaging the employer-manager relationship.
A great performance review is a two-way conversation between a manager and an employee. It is important to consider that as much as the manager is there to give the employee feedback, the manager should welcome feedback from the employee about how they are doing as their manager. This process is not to be overlooked as it can strengthen the employee-manager relationship and foster a more cohesive working environment.
What should be included in a great performance review?
Regardless of the type of work or industry the employee is working in, most employee performance reviews should include the following assessment of skills:
- Collaboration and teamwork
- Communication
- Quality and accuracy of work
- Problem-solving
- Accomplishment of goals and adherence to deadlines
- Attendance, punctuality and reliability
- Business-specific competencies
- Position-specific competencies
- Other accomplishments and contributions
Each of these key areas should be assessed based on their importance to the role. For example, an accountant working independently in a business may not be required to have exceptional teamwork skills however, there would be a need for high quality and accuracy of their work.
How to deliver a great performance review?
Preparation is key! Put together the performance review document including the key areas being assessed and ensure the employee has a copy of it well in advance. Involving the employee in putting the document together is even better as can reduce some anxiety about the review process.
When preparing the review document, the manager should think about:
- What has the employee done well?
- What areas could they improve?
- Any scope for development within the business?
- How can the manager better support their employee to be the best they can possibly be?
It is important to remember that any feedback provided needs to be objective and backed with evidence.
To deliver a great performance review, a manager should:
- Provide regular, informal feedback
- Be honest and transparent
- Have the review face to face
- Use tangible, evidence-based examples
- End the discussion on a positive note
- Carefully select their words and language
- Not rush the process
Proactive measures to ensure a great performance review
Performance reviews have the ability to make or break an employee’s commitment to a business. Unfortunately, many managers have not had the opportunity to attend formal training to teach them how to have important conversations with their employees. Investing in some formal training for managers can be invaluable for a business and help cultivate an environment of trust and cohesion.
Check out our previous blogs, How to prepare for Staff Performance Reviews, Our Top 10 Tips for Effective Performance Reviews, and Performance Appraisals for some more information about managing employee performance.
Cornerstone HR can provide training specifically tailored to your business to help you and your managers provide effective performance reviews. Get in touch with our team via the chat box here or give us a call on 08 6150 0043.
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