Outsourced Accounting & Human Resources Services
877-535-1183
Madison
301 S. Blount Street
Suite 204
Madison, WI 53703
Milwaukee
313 N Plankinton Avenue
Suite 205
Milwaukee, WI 53203
Ann Arbor
333 Jackson Plaza
Suite 110
Ann Arbor, MI 48103
Employee performance reviews can feel like a tightrope walk, not just for the folks on the receiving end but also for you, the managers steering the ship. Fortunately, shedding light on performance reviews and how to conduct them effectively can ease the anxiety surrounding them, giving managers like you the confidence to navigate them smoothly. In this blog, we're diving deep into the world of performance reviews. We'll explore everything from the basics of what they are and why they're crucial, to the different styles you can adopt. Plus, we'll discuss the benefits they bring to both the company and employees, the common challenges you might face, and how to overcome them.
Armed with best practices for before, during, and after the review, you'll walk away ready to handle these reviews with confidence and finesse. Let's get you prepped to conduct employee performance reviews that are as effective as they are empowering.
Performance reviews, also known as performance appraisals or evaluations, are a method used by employers to assess an employee's job performance and overall contribution to the organization.
Typically conducted annually or semi-annually, these reviews provide a structured way for managers to provide feedback, recognize quality performance, and identify areas for improvement. They often influence decisions related to promotions, pay raises, and professional development.
Each company conducts employee performance reviews their own way. Here are some of the most popular styles.
This approach gathers feedback from all directions – managers, peers, subordinates, and sometimes even clients. It provides a comprehensive view of an employee's performance from multiple perspectives, offering a well-rounded evaluation.
In this style, employees are asked to evaluate their own performance. This encourages self-reflection and personal accountability. It allows employees to highlight their achievements and reflect on areas where they might improve.
MBO involves setting specific, measurable objectives for employees and then reviewing the performance against these goals. This method focuses on setting achievable, clear objectives and is often used for performance management.
This method uses specific behaviors as a basis for evaluating an employee's performance. BARS are designed to reduce the subjectivity involved in rating and provide concrete examples of what various levels of performance look like in certain areas of competency.
We’ve learned “what” employee reviews are; now let’s dive into the “why” behind them. Companies conduct performance reviews for a variety of reasons, with the below being some of the most significant:
There’s a reason why performance reviews were initiated in the first place. If done correctly (we’ll get to that later), they positively impact both company and employee performance. We’ll discuss each of these in turn.
Employees are the heartbeat of a company, and their performance levels up to company-wide success (or failure). Here’s how effective employee performance reviews can benefit the company as a whole.
It’s not just about the company. Performance reviews are intended to support employees in reaching their maximum potential. Here’s how:
If the benefits of employee performance reviews are so clear, why wouldn’t everyone — managers and employees alike — be thrilled when review time rolls around? To put it simply: performance reviews aren’t without their challenges, on both manager and employee side. The stakes are high, and the tension can follow suit. Below are some of the primary challenges managers confront when faced with conducting employee reviews. (Stay tuned for how to tackle them by following best practices!)
So how can managers overcome performance review challenges in order to reap their myriad benefits? With a little guidance, you’ll get there in no time. Performance review best practices can be thought of in three groups: before, during, and after the review. We’ll explore all three.
Like with anything, preparation is key. Preparing to conduct a performance review should include collecting and reviewing relevant data, setting clear objectives for the meeting, and ensuring a comprehensive understanding of each employee's role and performance. Here’s what that looks like:
With preparation behind you, it’s time to outline the structure of the performance review you’re about to conduct. Follow a format that covers evaluation of past performance, discussion of strengths and weaknesses, and setting future objectives. This ensures a comprehensive, balanced, and forward-looking review.
It’s all about the follow-up. Schedule regular check-ins on progress and continuous feedback, rather than waiting for the next formal review.
As we wrap up this comprehensive guide on employee performance reviews, remember that mastering these evaluations is a journey, not a one-time event. If you find yourself needing extra guidance or have questions about any human resources-related tasks, we’re here to help. Our experienced HR consultants offer small businesses personalized assistance to ensure you're equipped with the knowledge and skills needed to excel in managing your team effectively. Don't hesitate to reach out for support in navigating the nuances of employee evaluations and reaping the rewards.
Enter your email address to sign up for our free and informative newsletter.