Are Employee Performance Reviews Effective?

Most people who have held a job are familiar with employee performance reviews. Some look forward to being evaluated and others would rather go day-to-day without receiving any feedback at all. As an employee, you really have no say over your company’s processes and whether or not you will be evaluated on a regular basis. As a business owner or the head of talent management, you are the one who decides how to evaluate and develop your workforce for the betterment of your company. If you are trying to create a process or modify the guidelines that you currently follow, it is important to learn whether it is worth the time you spend doing evaluations when you review your employees. Here is what you need to know.

What Do Supervisors and Managers Look At When Conducting a Performance Review?

The effectiveness of a performance review all depends on what managers are reviewing and how evaluations are given. How performance is measured ultimately depends upon the type of duties being performed by the employee. It is the manager’s job to review the job duties and then assess where there is a need for improvement. The performance appraisal should include areas where the desired performance has been achieved and other areas where there is room for improvement. It is also the perfect time for managers to help employees set goals for the future so they can get a promotion or take on new responsibilities for work experience.

What Are the Benefits of Formally Appraising Employee Performance?

Effectively evaluating employee performance does take time. Since you are dedicating your time and resources to evaluating your staff, it is important that you know how your organization can benefit from designing a formal appraisal system. Here are some of the major outcomes your company can appreciate with the right system:

• Improved employee productivity which leads to improved company production
• Better informed to promote talent or terminate employees who are not performing
• Identifying new responsibilities that can be added to a job title
• Setting goals that align with the company goals
• Modifying what is required to hold a specific title for new hires

Tips for Conducting the Most Effective Performance Reviews

When you are writing a review, you want nothing more than to praise the employee. Unfortunately, only focusing on the positive does not do the employee or your company any good. While you can keep a positive tone, there are a few best practices that can help you modify behaviors while still getting through to your most distinguished personnel. Here are some performance appraisal tips:

• The topics discussed should not be a surprise. The employee should know where there is a need for improvement because of prior discussions held on a weekly or monthly basis
• During the first review, employees should be asked to set goals to aid with future evaluations
• When you are setting goals, be clear on how performance will be appraised in the future
• Do not let recent events cloud your judgement as you write up your evaluation
• Ask for peer feedbacks
• Develop trust and be genuine as you discuss the employee’s future

As long as you stick to the best practices in performance reviews your organization can benefit. Stay committed and always be a forward thinker. By committing your time to writing up employee performance reviews, you can build strong relationships and improve performance all at once.

See also: What is Participative Management?