.svg)
.svg)
CEB says only 5% of HR managers are satisfied with performance reviews. This means the rest of the 95% are unhappy with how the current performance review system works.
When you think about it, companies that conduct performance reviews in the right manner routinely are very few. Most companies conduct performance reviews that plainly state to the employees what they are doing wrong and that it needs improvement.
This bland approach is counterintuitive because it does not do anything to increase employee engagement or productivity. So, how do we conduct impactful performance reviews? What are the dos and don’ts associated with it? Let us find out.
In simple terms, a performance review is a dynamic process where individuals meet with their supervisors or managers to evaluate their work performance.
From the organization's perspective, performance reviews enable
- Strategic decision-making
- Talent management, and
- Succession planning
They help identify high-performing employees who can be developed and provided with additional responsibilities or opportunities for advancement. Moreover, they offer a chance to address any performance issues promptly, ensuring that corrective actions can be taken to support the employee in reaching their full potential.
Performance review facilitates an in-depth exploration of an employee’s strengths, weaknesses, and areas for improvement. Constructive feedback and guidance become the catalysts for growth, enabling individuals to refine their skill sets, enhance their professional competencies, and align their efforts with organizational goals. Recognition and appreciation play a pivotal role, in generating motivation, job satisfaction, and a sense of fulfilment among employees. If used properly, managers can convert performance reviews into an effective tool for organizational growth.
Performance reviews are key to performance management. Performance management is key to a well-functioning organization.
Now, this combination makes performance reviews an integral part of human resources. We know that performance reviews are conducted by managers to evaluate how well an employee has performed in the past few months. The focus here is given to not just professional development but personal development as well. HR managers conduct performance reviews ideally every four months or at similar intervals for consistent feedback and follow-up.
So why is performance review so crucial for human resources?
For starters, a properly conducted performance review helps managers identify areas of strength and weakness of employees, which opens doors for transparent communication among both parties. Such activities aid in crucial elements of HR, like succession planning, talent management, and compensation planning.
See, all those benefits of performance reviews can be reaped only if the process is conducted properly.
There are a lot of things that can go wrong during a performance review. This is why managers are said to conduct the process in a collaborative and cooperative manner rather than a one-way communication process. The employees must feel that the review is conducted to help them grow and develop rather than to tear them down. As a manager, if you are successful in communicating this message, you can collect valuable information from the performance review process.
Every organization has its own set of goals, objectives, and mission.
Now, based on these factors, companies come up with a set of competencies that they believe an employee must possess in order for the firm to achieve its goals. These skill sets are known as organizational competencies. Since every organization has a different set of goals and objectives, the competencies they prefer to be present in their employees also differ.
However, some competencies remain the same no matter what the goals are, like decision-making skills, communication, conflict resolution, and change management. But what does it have to do with performance reviews? A manager conducts performance reviews by taking these competencies as a framework for the review.
A manager evaluates employees based on the competencies the company finds valuable. It makes it easy for managers to understand whether the employees have what it takes to help the organization achieve its goals. Also, it makes sure that the goals of the employees and the goals of the company are aligned. One can confidently say that organizational competencies form the framework or foundation upon which an excellent performance review is built.
Like we said at the beginning of the blog, a huge percentage of HR managers find that performance reviews do not have the right impact they wish they had.
So, what makes a performance review impactful?
What are some companies doing right that the others haven't yet figured out?
Well companies that intentionally conduct performance reviews have their purpose clear.
It is essential that managers have a clear understanding of why they conduct the reviews. The sole purpose is to help the employees grow and develop. If this is not clear from the beginning, the review can take a hostile air, making things difficult for both the manager and the employee. So, the most important factor that helps make a performance review impactful is a clear purpose. Now, that's not it. There are more. Let us discuss them in detail in the next session.
Just like any systematic process, in order to conduct a performance review efficiently, you need to keep in mind some dos and don'ts.
The Dos
Let us begin with a list of the things that you have to do in order to make the performance review process a success.
Listen to what your employees have to say
Rather than keeping the meeting one-sided, you have to keep it two-way. Let the employees speak their minds as well. If it is just the manager who does the talking, there is no scope for open communication. It is an essential part of the review process to understand what the employee has to say. For this to happen, you have to listen to what they have to say.
An action plan for improvement is always welcome
At the end of the meeting, when you are done evaluating them and giving them the reviews, it is always efficient to give them an action plan to follow. What is even better is sitting together with the employee and coming up with the action plan together. It makes sure that employees actually implement whatever is discussed in the meeting.
The feedback must be specific and actionable
Rather than giving vague remarks like improving the general performance, always make sure to give feedback that is specific and can be put into action. You can help build an OKR for the employee so they have a clear idea of what is expected of them. The more specific the goal is, the better the performance of the employee will be.
Always do the performance review face-to-face
Do you know what takes a performance review to the next level? Doing it as 1:1 meetings. There can be a lot of misinterpretations that can take place if the meeting is not done face to face, and the meaning of certain feedback might get twisted. To avoid these things from happening, do the meeting face to face.
The Don’ts
Just like how there are things that you must do in a performance review, there are things you mustn't do as well. Next, we will discuss the don’ts.
Don't make the meeting one-sided
Ask your employee what they think they can do better or how you can help them do their job better and keep you up to date on their progress. Let them talk about their ideas, and you can make a plan for success together. Don't be the only one who coaches and gives helpful criticism. Your worker and you work together as a team
Make sure to focus on the positives as well
A performance review is not just to state the areas of improvement for the employees. You have to state the areas where they are doing well, also. It makes the review process balanced and positive. On the other hand, if you just state the downsides or shortcomings of an employee, they might feel attacked and grow resentful.
Do not be biased in your feedback
I know this goes without saying, but sometimes, unknowingly, we let biases creep into our feedback reviews. We might have some preconceived notions about certain employees or have certain favorites among them. A manager must keep aside all such personal preferences and opinions and keep the review as objective as possible.
Don't forget to check in routinely
Conducting a performance review without proper follow-up is the biggest mistake preventing the company from seeing positive results. If you do not check in every now and then to track the progress of the employees, then what is the point of conducting such a time-consuming affair?
We now know what is to be done and what is not to be done while conducting a performance review. Just to cement things in, let us take a look at some examples of performance review statements:
- "Tom actively works with his team members, making the workplace a good place to be for everyone. His willingness to share his knowledge and support teammates has strengthened and helped the team flourish.”
- "Alex is very good at adjusting to new situations. He tackles project changes and unanticipated issues with a cheerful attitude and produces high-quality work when time is short.”
- "Emily always meets and goes above and beyond performance goals. Her will to achieve is remarkable, and she continually seeks methods to enhance procedures and assist the team to thrive.”
- “Jessica always uses feedback to better her work and pursues professional growth. Her commitment to improvement inspires her pals.”
Let us now focus on how to actually write a good performance review for different competencies with the help of these 10 examples.
Example 1: Outstanding Performance
"John consistently goes above and beyond expectations, exceeding targets and delivering exceptional results. His attention to detail and proactive approach have significantly improved project outcomes.
For example, his out-of-the-box solution helped us decrease production costs by 20%. John's dedication, strong work ethic, and ability to adapt make him an invaluable asset to the team."
Example 2: Exceptional Team Player
"Jessica consistently stands out as an exceptional team player in our organization. Her collaborative spirit and willingness to support her colleagues have a significant impact on our team's success."
For instance, during a recent project, Jessica took the initiative to organize weekly team meetings to ensure everyone was aligned on tasks and deadlines. Her ability to foster a positive and cooperative work environment is truly commendable. Jessica's dedication to teamwork and her positive attitude make her an asset to our department.
Example 3: Performance Improvement Plan
"Jennifer's performance as a marketing coordinator has been consistently falling short of expectations. She frequently misses project deadlines and lacks effective communication with team members.
In order to support Jennifer's improvement, a comprehensive performance improvement plan has been put into action.
This plan entails setting clear goals, conducting regular check-ins, and providing ample opportunities for skill development, all aimed at helping Jennifer reach and surpass the desired performance standards."
Example 4: Leadership Potential
"Sarah consistently demonstrates exceptional leadership skills and motivates her team to achieve greatness. She excels in delegating tasks, offering valuable guidance, and fostering a highly productive and positive work environment.
Sarah's ability to communicate and collaborate seamlessly with colleagues across various departments positions her as an exemplary candidate for future leadership roles within the organization."
Sarah's exceptional leadership skills and potential for future leadership roles are the focus here. It highlights her ability to delegate, offer guidance, and create a positive work environment.
Related post: Top 10 qualities of a good manager.
Example 5: Excellent Conduct
"Michael consistently surpasses expectations in his role as project manager. He exhibits remarkable leadership qualities by skillfully delegating tasks and providing invaluable guidance to his team. Notably, Michael consistently delivers projects ahead of schedule while upholding an exceptional level of quality. His profound analytical abilities and unwavering attention to detail significantly contribute to the overall success of our team's endeavours."
Michael's excellent conduct as a project manager is acknowledged, with an emphasis on his leadership qualities, project delivery, and attention to detail.
Example 6: Areas for Improvement
"Sara demonstrates excellent technical skills; however, there have been occasional challenges with meeting deadlines. It would be beneficial for her to enhance her time management and prioritize tasks more effectively. By improving her organizational skills, Sara will be better equipped to consistently deliver high-quality work within set timelines."
Sara's technical skills are praised, but areas for improvement, such as time management and organization, are pointed out. The review offers constructive feedback for growth.
Example 7: Very Good Performer
"Natalie consistently meets and often exceeds expectations in her role as a sales representative. She maintains a positive attitude and establishes strong relationships with clients. Natalie consistently meets sales targets and demonstrates excellent negotiation skills. Her ability to adapt to client needs and provide creative solutions has resulted in increased customer satisfaction."
Natalie's consistently high performance as a sales representative is recognized, including her positive attitude and client relationships. It also mentions her ability to meet sales targets and provide creative solutions.
Example 8: Efficient Work
"Samuel meets company expectations in his role as a software engineer. He consistently delivers high-quality code and meets project deadlines. Samuel collaborates effectively with team members and is willing to share his knowledge. Moving forward, he could further enhance his skills by seeking opportunities for professional development and demonstrating stronger initiative in suggesting process improvements."
Samuel's efficient work as a software engineer is highlighted, including his code quality and meeting project deadlines. Suggestions for further improvement are also provided.
Example 9: Needs Improvement
"Olivia shows potential but currently falls short of company expectations as a graphic designer. While she produces visually appealing designs, she often struggles with meeting project deadlines. Olivia could benefit from improved time management skills and better prioritization. Additionally, she should actively seek feedback and guidance from senior team members to further develop her design skills."
Olivia's potential is acknowledged, but areas needing improvement, like meeting deadlines, are addressed. The review suggests ways for her to enhance her skills.
Example 10: Below Expected Standard
"Michael's performance as a customer service representative falls below company expectations. He frequently demonstrates a lack of attention to detail and fails to provide satisfactory solutions to customer issues. Michael should focus on improving his communication skills, actively listening to customer concerns, and seeking guidance from team leaders to enhance his performance."
Michael's performance falls below expectations as a customer service representative. It mentions his lack of attention to detail and offers guidance on areas for improvement.
Put Your Performance Reviews on Auto-Pilot
Managers must approach reviews with a constructive and supportive mindset, encouraging open dialogue and facilitating continuous improvement. Prioritizing the identification of strengths and areas for improvement, providing specific and actionable feedback, and establishing clear goals, allows performance reviews to empower and motivate employees.
If you still feel stuck while curating performance reviews, try ThriveSparrow. The platform helps streamline your resources and understand your employees to enhance employee engagement by providing 360-degree feedback.
Trend Charts help organizations track their employees performance across departments and competencies.
Moreover, Individualized reports allow managers to identify employee strengths and weaknesses, helping them create personalized development plans.
Book a free consultation today, and help guide your managers in achieving high performance for their teams.
