Are you responsible for managing a business or the performance of staff in a company? Or perhaps you’re studying for a masters in HR, or a related qualification such as an MBA. Whatever the case, staff performance is a major element of any successful company. Staff need to perform well to generate revenue and profit for the company. And a large part of managing teams is ensuring that they perform well. It takes skill and experience to manage people, and one main component of regularly addressing their performance is regular performance reviews.
This helpful article will discuss all things related to performance reviews. It will cover why they are important, when to hold them, and how to approach them from both a staff and an employer perspective. So, continue reading to learn more about this valuable topic.
What is a Performance Review?
A performance review is a periodic or regular assessment of an employee’s overall performance and contribution to a company or organization. Think of them as work appraisals. As such, a work review means identifying employees’ strengths and development areas, setting future goals, and sharing feedback in a two-way street. Some companies conduct their performance reviews annually, while others do so monthly or quarterly. It will vary depending on the employer.
Why Performance Reviews Are Important
The following section will cover why performance reviews are important for both employees and employers.
For Employees
Performance reviews are important for staff because they allow team members to reflect on their performance, see how it has improved or deteriorated, and set some goals for the future. They also allow them to give feedback to their manager, discuss how they like to receive feedback and determine what will benefit them in the workplace regarding management styles and expectation setting.
Sometimes, a performance review requires staff self-evaluation. The employer may ask team members to write a self-assessment report before the review date. So, staff may want to look at their performance over the course of the year or other periods or for however long they’ve been working in the organization.
When staff do this, they should think back and note down any initiatives that they took at work. They will want to highlight any accomplishments they achieved and any mistakes they made. Honesty is important here. Staff should describe how they have helped their team, site, or manager and give specific examples.
For Employers
Periodic employee review meetings give the employer the opportunity to assess how well staff efforts are meeting the company’s goals. The outcome of the review enables the employer to share their strategy and goals and how staff can achieve them for the company.
In addition, performance reviews are a great way of highlighting specific employee achievements and discussing any concerns that an employer may have with a particular staff member. Managers can set staff expectations during a review. This can help staff clarify expectations and allow managers to discover and resolve any issues the team members may be experiencing.
When You Should Hold Performance Reviews
Now, we’ll discuss performance review frequency.
For Employees
Typically, the employer will set the frequency of a performance review, and staff often don’t have much of a say in when or how they’re conducted, as each organization will have its process. However, a staff member may request a review if they feel as though they have been particularly productive or are generating additional value for a company. If this is the case, requesting a review can be a great precursor to requesting a raise or bonus as long as a staff member is able to demonstrate, using facts and statistics, the additional value, profit,t or excellent solutions they’ve provided their employer.
For Employers
As mentioned above, different organizations will conduct performance reviews based on their internal policies and procedures. For instance, some employers may only schedule performance reviews once yearly, sometimes tied to the end or beginning of the fiscal year. Others may schedule them every six months, which is sometimes in line with probationary periods for new staff. Others, such as in some sectors like sales or marketing, may require more frequent reviews to align with sales campaigns or marketing strategies.
How to Approach a Performance Review
Finally, we’ll discuss how to approach a performance review.
For Employees
As an employee, it’s important to treat a performance review as an opportunity for growth and development. You’ll want to keep an open mind about the feedback you’ll receive and be ready to receive critical feedback about how you can approve. Nobody is perfect at work, and mistakes occur, so be prepared to address what you’ve learned about your mistakes and how you will avoid them in the future. Don’t go in expecting to be showered with praise or offered a raise on the spot; instead, retain some cautious optimism about the process. You may also want to consider some goals you’d like to achieve and seek your employer’s feedback on these to see if they align with the company’s goals and overall strategy.
For Employers
An employer must come prepared for a performance review. If you are discussing topics such as performance or behavioral issues, you’ll want to be able to include concrete examples so staff knows exactly how they can improve. You may also want to use this time to set expectations and goals for staff, especially if there is an important project or task coming up that you want your teams to work on.
The performance review also discusses staff strengths and weaknesses, development areas, and room for growth. Ironing out individual weaknesses and giving staff tips on improvement can help improve the company as a whole. However, employers should also acknowledge individual employee strengths and find ways to use them. Based on feedback and observations, employers can also identify where team members may benefit from some extra support from their manager.
Furthermore, during a performance review, employers should provide constructive feedback and inform the staff member about specific growth areas and skills to improve to increase overall performance. For instance, a staff member may need to learn a new technical skill, undergo management training, or take on a challenging and rewarding project for career growth and development.
This helpful article has covered everything you need to know about performance reviews and why, when, and how they should be conducted from both employees’ and employers’ perspectives.
Image Credit: Photo by Gabrielle Henderson; Unsplash
