The way performance reviews are carried out can have a huge impact on an organisation’s retention rates, employee satisfaction and company culture. In most organisations, the typical employee review process is often ineffective and is dreaded by both employees and management. However, if conducted properly, performance reviews can be extremely valuable in guiding employees to reach their potential and achieve corporate goals. This article shares 6 ways that you can transform your performance reviews into effective feedback sessions.
Have a Forward-looking Discussion
A key component of classic performance management is a focus on the past. It’s all about the what and how we did, and not so much about where we’re going. But, this type of evaluation often leads to a low-energy environment that doesn’t inspire morale or innovation.
Instead, look ahead when conducting performance reviews. Discuss the potential opportunities for your organisation and the actions that can be taken to improve on outcomes. Make your people think about the future. By focusing more on where your team is headed, you can provide your employees with a clearer vision for their future and help them get there.
Focus Not Only on Performance But on the Employee’s Growth and Potential
While it’s important to focus on the performance of your employees, you should also be concerned with their growth and potential. It’s significant for both parties involved: the employee and the employer. Employees want to know that their work is valued and they are progressing in their career, while employers want to know what needs to be done to help their employees develop and thrive.
Ensure that during the review process, you are not only pointing out problems or achievements but are discussing and reviewing the employee’s progress and development. This will help set the focus on how the employee can grow in their career to reach their potential as well as highlight any areas where improvement may be needed. The conversation also provides you with an opportunity to reinforce what areas an employee is excelling in, which can be helpful in motivating them to take even more initiative in those areas where they are already strong.
Implement Real-time Feedback Loops Instead of the Annual Review Process
The problem with annual reviews is that they are often too infrequent to allow for meaningful conversations about performance. It can take months or even a year for an employee to receive feedback on their performance. The purpose of these long gaps is that employees are given time to reflect on what they’re doing and make adjustments where necessary. However, this also means that employees don’t have the opportunity to reflect and make changes until after a long period of time has passed. This leads to employees feeling like they aren’t being heard or understood. When this happens, there’s a good chance the employee might leave the company.
One way organisations can avoid this problem is by implementing real-time feedback loops where feedback is given at multiple points throughout the year, not just once per year. Within business, a feedback loop typically refers to the process of using employee or customer feedback about an organization’s products or services to create a happier workplace or a better product.
By implementing consistent feedback loops, employees will be able to get real-time feedback on their performance. This will allow them to adjust without waiting for another annual review process. They’ll also be able to more quickly demonstrate measurable improvements. In turn, the input will benefit the organisation in making better decisions.
This approach should be encouraged in all organisations as it allows for continuous dialogue between management and employees, and consequently increases workplace engagement and reduces turnover rates.
Address How the Employee Can Be Supported to Develop Their Skills and Achieve Their Goals
In a performance review, it’s imperative to do more than just critique an employee’s performance. It’s essential to also offer feedback and guidance on how the employee can be supported to develop their skills and achieve their goals.
In order to do this, you will need to understand what each employee wants out of their career, how they see themselves fitting into the company’s overall goals as well as what strategies have been successful in the past.
You should ask questions such as:
- What is important to you?
- What are your strengths?
- What are your weaknesses?
- What are your interests?
- What tasks do you find tedious?
- What tasks do you enjoy doing?
- What projects would you like to work on?
- Would you like to receive additional training?
- Are you interested in contributing to other areas of the business?
- Is there something specific you’re interested in learning?
- Is there anything you’re struggling with?
- What can we do to support you?
- How can we help you reach your goals?
- Where do we need to focus our attention and resources?
Once these questions have been addressed, it’ll allow both the employee and manager to understand what help and support is required to develop the employee’s skills and advance mutual goals.
Make Reviews a Two-way Street by Encouraging Employee Feedback
Performance reviews should not be one-sided, but a partnership of mutual understanding. It’s not enough to simply sit down and give a review.
Openly soliciting feedback from employees during the performance review is critical to the success of the organisation. By fostering an environment where employees can feel free to provide feedback, both HR and management will be better able to understand what needs improvement in the workplace. Employees should be given ample opportunity to discuss training or development programs that they would like to explore or pursue. They should also be able to provide their input about the pros and cons of how things are currently done.
Encouraging an open dialogue will be an eye-opener for both parties and will help facilitate a more collaborative workplace culture.
Come Up With Solutions Together and Agree Upon Next Steps
In order to make your performance review more productive, it’s so important that both parties come up with solutions together and agree upon the next steps to be taken in order to improve performance and advance the goals of the company. This will create a win-win situation: the employee will feel supported and valued by their employer, and the employer can work hand-in-hand with their employee to create strategies for improvement and achieve greater outcomes.
Developing a mutual understanding of the present challenges and expectations for both parties not only provides clarity for future action, but also serves to strengthen accountability and build a roadmap for achieving common organisational goals.
