Posts Tagged ‘employer-employee’

6 Steps to Complete a Beneficial Employee Performance Review in the New Year

Thursday, January 9th, 2014

performance blogFor many managers and supervisors, completing employee performance reviews is a task at the top of their to-do lists at the beginning of the year. Performance reviews are important for a number of reasons. They are imperative for keeping employees in line with their individual goals, as well as the goals of the company. They often determine the career path of an employee and whether or not someone is eligible for a merit increase.

Because they indicate past work history and future potential, spending adequate time to prepare for your meetings with your direct reports is essential. Performance reviews are a vital part of the employer-employee relationship, and they should be beneficial to both managers and their direct reports.

Before you conduct performance reviews with your employees, consider the six tips below to achieve a productive and mutually valuable meeting:

Create an Ongoing Process

Instead of waiting for an annual performance review, managers should provide both constructive criticism and praise to their employees throughout the year and use the annual performance review to summarize the performance from the prior year. This will eliminate any surprises when completing reviews with your team members.

Take Time to Prepare

A good review starts with good planning. If you’ve kept notes throughout the year, your performance reviews will write themselves. Reexamine goals discussed in past meetings and collect specific examples of the times employees excelled and the times employees needed to improve during the year. Use this information to guide your review and help convey the expectations you have for your direct reports.

Have a Two-Way Conversation

A beneficial employee review includes participation from the manager and the employee. Allow your direct reports to reflect on their own performance and let them prepare answers for questions regarding their work flow and company activity for the future. Employees should be able to offer suggestions on how they can improve their work. Make them feel comfortable to mention items that could be hindering their performance or other concerns they may have.

Share Praise and Constructive Criticism
Reviews that only highlight negatives will deflate employees and leave them wondering if they are in the right position or with the right employer. However, managers who shy away from negative comments to avoid hurting feelings are doing their employees a disservice. Without constructive criticism, employees will not improve and will eventually become stagnant in their position. Strive to include praise and constructive criticism for a balanced review.

Match Merit Increases with Performance Levels
Giving two different employees very different performance appraisals and awarding them identical increases sends a message that performance does not matter. Your top performers are going to realize your poor performers are receiving the same compensation if not the same recognition, and you risk them decreasing their productivity or even moving to another company. Keep your employees motivated by giving awards based on performance.

Pay Attention to Your Employees
Performance reviews provide opportunities to give your employees feedback and also to gain valuable insight from their perspectives. It is an important time to give employees your undivided attention and listen to them to get their viewpoints on their performance and the organization as a whole.

For additional assistance in employee performance reviews, please contact a member of CAI’s Advice and Resolution Team at 919-878-9222 or 336-668-7746.

Photo Source: Victor1558