Dear Al Brown, Welcome to Workplace Watch! Workplace Watch is a series of business articles dedicated to providing you and your company with information on current business topics and trends that affect your daily work life. This month features the performance review, and how a carefully planned out, accurate and consistent performance review can result in improved communication between managers and employees.
Contact: Allan Brown Doherty Staffing Solutions 7625 Parklawn Ave Edina, MN 55435 952-832-8350 Send an Email   To view other Workplace Watch articles, click on a topic below: Employee Recognition Leadership That Works Baby Boomers and Beyond: The Multigenerational Workforce Conducting Successful Meetings The Complexity of Workers' Compensation The Challenges of Change Managing Problematic Employee Behaviors Understanding Unemployment		The Art of Performance Reviews There is a certain shudder that goes down the spine of both managers and employees when the words "performance review" are uttered. However apprehensive one may feel, a thorough performance review can be a valuable employee development tool, contributing greatly to the success of a business. A comprehensive review should be discussed with employees in a neutral setting and geared toward honest feedback and improved performance. Properly executed, a performance review can give confidence to employees and instill in them the desire to do better in their jobs while improving communications between employees and management. Overview Consistency when conducting performance reviews is essential. A manager should strive to prepare and execute the review the same way for each employee. Unless a consistent review process is used, some employees may feel that they have not received the same appraisal as others. One way to remain consistent is by setting goals for each employee as part of their regular review. Setting goals is an excellent way for employees to lay the ground work for making improvements from one review to the next. Performance reviews can be useful for motivation, but only if they are carefully planned out, accurate and consistent. Criteria Having specific criteria for conducting a performance review is extremely important, regardless of company size or industry. Some companies may choose to have managers review an employee's work based on quality relative to job requirements, and partner that with consideration of the employee's work ethic and employee relations abilities. Other companies may choose to identify measurable key performance areas such as number of sales made during a given period or how many days of work were missed. Whatever method a company decides works best, remember that managers should use that same method and execute it in the same manner for all employees. Developing or using a ratings scale is a good way to show an employee how he or she is doing and where improvement is needed. A manager might rate the employee in each key performance by using either of these types of scales:   Poor Satisfactory Good Very Good Excellent 1 point 2 points 3 points 4 points 5 points   Meets Expectation Did Not Meet Expectations 1 point 2 points Conducting a performance review To create a comfortable and relaxed atmosphere, a manager should begin the review with a greeting and some brief small talk. Maintaining control of the introductory period is very important. A good rule of thumb is to limit small talk to around 60 seconds. Employees appreciate having a manager get to the point of the review meeting since this is what they have come for in the first place. If a manager has completed a written performance assessment document on the employee, that meeting should still be interactive and provide room for discourse and planning. To encourage interactive communication, a manager should prepare for and allow specific questions and feedback throughout the entire review. An employee deserves to have the floor for that interactive discussion, no matter when it occurs during the conversation. Summarizing a person's performance prematurely during a review may encourage them to obsess on small details such as "What do you mean, you rated my performance as satisfactory this past year? I worked harder than anyone in my department and this is what I get, a mere satisfactory rating?" Waiting until the end of the interactive review to summarize performance will give both parties an opportunity to arrive at a similar assessment of overall performance. Preparation, knowing what to say and how to say it Good performance reviews require careful preparation. Throughout the year, managers should be taking thorough notes on both the positive and negative work habits of their employees. Keeping a record of an employee's first-rate performances, co-worker compliments and high-quality projects is a nice way to illustrate that their good work has not gone unnoticed. On the other hand, if an employee consistently performs poorly, it's vital to document this fact, as well as any corrective action that was taken. In either case, proper documentation will provide managers with examples for employees during their reviews. Keep in mind that all negative or corrective feedback for an employee should have been delivered before the formal performance review. An effective performance review is one where no employee is surprised by the content of the review. If an employee is being told about performance shortcomings for the first time, the manager needs to re-examine his or her daily feedback, guidance and support. Strengths and weaknesses Unless an employee's performance is unsatisfactory, give credit on both major and minor strengths as they relate to their job. Constructive comments designed to request performance improvement should be avoided until the manager has reviewed the employee's strengths. Either specific or general descriptions will do when discussing strengths, such as some simple praise for an employee's telephone skills or artistic talent. If an employee is extraordinary, discussing opportunities for improved performance will not be an issue. But, since most people have one or more things they can improve upon, a manager should always provide feedback regarding these areas or suggest areas for enhancement of current skills or development of new ones. In reviewing areas for improvement, a manager should offer specifics. See the information below for a good way to use specifics when discussing an employee's attitude.   Non-specific You have a poor attitude. Specific (Better) You are often late for company meetings and you have complained incessantly about company policies. This behavior has been addressed and discussed previously. You can appear to others as having a poor attitude about your work and the company. Though discussions on topics such as a need to show an improved attitude can be uncomfortable, it is important to provide time and opportunity for each employee to speak about his/her self-perception. As mentioned previously, the review should be interactive providing the foundation for a productive relationship. Closing the performance review Conclude the review by summarizing the major points covered. Some managers allow an opportunity for the employee to offer input or a response regarding issues referenced in the review. The final minutes of the review should be focused on improvement plans and agreement on the topics and issues covered. A manager may also close with words for the employee that show a gesture of appreciation for the work they have done. For example: "The company and I very much appreciate your work, and we are glad to have you here." Summary Most employers conduct performance reviews annually in order to determine salary increases and bonuses. Since performance reviews are normally compared to previous reviews, it is better to conduct them on a regular basis, perhaps even holding mid-year reviews to assess goals and progress. Though some managers may view performance reviews as time consuming to prepare and conduct for their employees, it is an important part of employee relations and development. Performance reviews can be useful for motivating employees, but only if they are accurate and consistent. An inaccurate or inconsistent performance review, which fails to recognize the employee's value to the organization (strengths), can be worse than no review at all. Under-performing employees also benefit from regular reviews. These reviews will identify weak performance areas, allow a manager to set clear goals and expectations, and coach and mentor the employee to improve performance. Employees thrive on feedback, and regular performance reviews provide a consistent framework for providing positive reinforcement, problem solving and building communication.
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