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How to conduct successful performance reviews

How to conduct successful performance reviews

1 July 2011

Business owners and managers can easily get caught up in the day to day management of their businesses and overlook the importance of employees having the opportunity to discuss their role and contribution to the business. 

A formal structured process, commonly known as a performance review or appraisal, is a very valuable tool in business for both employers and employees. The process of shared feedback and discussion will ideally result in an employee motivated to increase future performance. 

The review process is a two-way conversation to discuss the employee’s performance over a given period of time. It is an opportunity for the employer to provide positive and constructive feedback. 

How Often, What to Discuss? 

Human resource specialists say it is important that employers conduct performance reviews at least annually. 

A busy employer may question this, saying “I have employees who know what they are doing; they don’t need to be told”. 

However there are many reasons why it is good practice to conduct regular performance reviews. 

  • Employees like to know how they are performing and if they are meeting your expectations as their employer. Where expectations aren’t clear, the performance review can provide clarity and an opportunity to resolve any issues. 

 

  • Positive and constructive feedback may encourage a greater level of performance from employees and possibly lead to an employee being willing to take on more responsibility.

 

  • The annual review process is good practice. It allows issues to be identified and addressed rather than continuing unresolved and leading to a much more difficult discussion further down the track. 

A Two-Way Process 

As an employer you no doubt would like to know how your employees feel about their roles and if there are any challenges or barriers inhibiting performance. 

An important aspect to the performance review process is to ensure it is a two–way conversation. At times it may be necessary to stop talking and to listen to what your employee is saying to get an appreciation of the issues. 

It is important that issues raised in the performance review are dealt with to maintain confidence in the overall process. If issues remain unaddressed, employees may consider the review process as a waste of time as nothing changes. As a business owner you need to commit to addressing issues as they arise or are identified. 

The Key to a Successful Review Process 

There are many pitfalls in the performance review process if it is not managed well. 

The key to conducting successful reviews is preparation, preparation and more preparation. The use of a documented review form ensures that all areas such as key performance indicators, training, career path and remuneration are discussed. 

Employees are often anxious about reviews, especially if they are not clear about the expectations and whether they have met these. Involving employees in the process by asking them to complete a self-review form helps to ensure they become more engaged. This then provides a good basis for genuine two–way communication. 

How to Measure Success 

If both parties have been heard equally and as much time spent providing feedback on the strengths, not just the challenges of the employee - then it has been a worthwhile exercise. 

From an employee perspective, if they have gained some constructive feedback or insight that they hadn’t had before, then it’s a win – win for both parties. 

Gabrielle McFarland – Boyce HR Manager 

Source: “Performance Anxiety” by Leigh Sujanto, Charter Magazine April 2011.

 

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