If I were to ask employees and managers what their favorite part of their job is, my guess is that performance reviews wouldn’t be at the top of the list.  There is something that is administratively painful about conducting performance reviews, but if you view it as an opportunity rather than a task, it can accomplish a great deal.

I like performance reviews because they allow me to level-set expectations and goals for each employee.  In addition, it provides a common vision for the company goals at hand and alignment of each employee’s contribution to the team.  The more that I can get the team rowing in the same direction, the more productive and satisfied all parties will be in their roles.

The frequency and detail of the performance management process should be left up to the company based on their needs, but a minimum of annually should be the baseline.  Honestly, I prefer semi-annual reviews to keep the team positively engaged in the tasks at hand.  I would rather check-in more frequently – and yes, work my way through the administration of the reviews – than lose good employees because they become misguided over that duration. 

Taking an active stake in the careers of your team will pay dividends for both parties.  Here is a high-level outline for the performance review process.

Employee Self-Assessment:  It is always interesting to gain the perspective of the employee through a self-evaluation.  The employee will identify key achievements and contributions accomplished during the review period and the employer can judge whether these were aligned with the overall team goals.  If aligned, encourage the employee to discuss challenges that they had to overcome to achieve results.  If they are not aligned, this provides the employer an opportunity to coach the employee on how to best achieve the desired results.

Manager’s Assessment:  Working from the employee self-evaluation, the employer can then craft their assessment.  Included in this assessment should be an overview of the employee’s performance including strengths and areas for growth.  I like to identify specific projects or tasks that were performed over the period to provide tangible examples of performance.  It also provides some specific areas for improvement.  Remember, the performance review isn’t only about the “what’s” but also the “how’s”.  Sometimes “how” the employee goes about their business is as important as “what” they accomplished.  Getting to the result on the “what” can’t mean that the employee leaves carnage in their wake.

Goal Setting:  This section helps align all employees to the overall goal of the company.  Discuss the short- and long-term vision of the company and how the employee’s area of expertise can contribute to the overall company objectives.  I like to propose both short and long-term goals to help paint a path of success for each employee.  The more they know how they can positively contribute to the overall goal, the better chance for their growth and success at the organization.  Both should agree on a summary of key takeaways and the development of an action plan.   It is also an excellent time to outline how the company will help in training, mentoring or any other development programs in the upcoming period.

Employee Feedback:  The performance review shouldn’t follow a one-way communication path from manager to employee.  Rather, this review process should allow for open conversation and dialogue so that both parties leave on the same page.  Encourage employees to voice their opinions on how to better manage workflow, projects and team chemistry.  If all have a say at the table, the company morale – and ultimately productivity – will be vastly improved. 

I know that most managers and employees dread the performance management cycle but conducted properly, it can provide both parties with an excellent reset and launching pad moving forward.  Open communication between a manager and their employees can foster a very collaborative work environment where both parties walk away satisfied.   

Want more ideas?  For more information on Gray Cat Learning Series, visit: https://www.graycatenterprises.com/gray-cat-learning-series