As an employer, you want to make sure your employees are performing at their best.
And one of the best ways to do that is by conducting employee performance reviews.
But if these kinds of performance evaluations aren’t done properly, they can end up doing more harm than good.
In any case, getting this right is incredibly important, as employees already tend to look at performance reviews in a decidedly negative light.
Many of them dread this sort of thing, as it can make them feel less motivated and engaged, and they often expect the worst, with many questioning the validity of the results, as well.
For instance, a Betterworks survey found that 37% of respondents would give their employer a grade of “F” when it comes to performance management.
What’s more, the survey found that fewer than one in three respondents think employee performance reviews are “fair and equitable” and 64% said they’re a “partial or complete waste of time that doesn’t help them perform better.”
But luckily, the way employee performance reviews are conducted seems to be changing.
For example, in a Workhuman survey, 46.9% of respondents said that when compared to before the pandemic, their employers have updated the way they measure success in employee evaluations.
This could end up being great news for everyone involved, but that’s only going to be the case if employers get it right.
With that in mind, I want to offer some advice on what to do and what not to do when it comes to employee performance reviews, so you can do what’s best for your business and your employees.
So, if you feel like your performance review process could use an overhaul, but you don’t even know where to begin, then this article is for you.
The Dos of Employee Performance Reviews
Employee performance reviews are more than just an administrative task – they’re an opportunity to strengthen relationships, align goals, and foster engagement.
However, success lies in a well-structured and thoughtful approach.
With that in mind, here’s how to ensure your performance evaluations are impactful, constructive, and beneficial for all parties:
Prepare Thoroughly
If you want employee performance evaluations to be successful, and a good use of everyone’s time, preparation is key.
So, before the meeting, make sure to take notes, solicit feedback from colleagues, and gather any relevant data, like performance metrics and project outcomes.
What’s more, reviewing previous evaluations and setting a clear agenda ensures the discussion will stay focused and productive.
In any case, you might also want to consider using some sort of performance review software or a template, which can help you make sure everything is covered, and nothing’s forgotten.
Set Clear Objectives
No matter what the context, every performance review should have a clear purpose.
Whether it’s to discuss progress, set new goals, or address lingering challenges, make sure to communicate these objectives to the employee in question before the review takes place.
This allows them to prepare for the meeting and fosters a more productive and collaborative discussion.
For example, before the evaluation, you might tell them, “In this review, we’ll assess your progress on last quarter’s goals and discuss how we can support your development moving forward.”
Create a Comfortable Environment
Performance reviews can be extremely nerve-wracking for employees, so it’s crucial that you create a supportive atmosphere where they can feel comfortable sharing their thoughts and concerns.
This is incredibly important, as it can lead to more honest and productive conversations.
So, make sure to choose a private setting, do whatever you can to minimize any interruptions, and use open body language to show you’re engaged in the discussion.
Focus on Specific Examples
Vague feedback doesn’t help employees improve, and if that’s all you’re providing, you’re basically defeating the purpose of the evaluation.
Instead, you should highlight specific instances of success and areas for improvement.
Providing these kinds of concrete examples makes your feedback much more beneficial, easier to understand, and shows employees that you’ve been paying attention to their work.
For example, rather than saying, “You need to improve your time management,” you could say something like, “I noticed the XYZ project deadline was missed. Let’s talk about how we can prioritize your tasks more effectively.”
Celebrate Achievements
Acknowledging an employee’s accomplishments is crucial for building morale and motivation.
But make sure to be sincere and specific when praising employees’ contributions, whether it’s for meeting a challenging deadline, mentoring a colleague, exceeding sales targets, or something else altogether.
When possible, you should also reinforce the employees’ value by framing these achievements as part of their overall contribution to the goals of their team or your company as a whole.
Provide Constructive Feedback
Constructive feedback helps employees grow and improves their performance.
So, make sure to frame your feedback in a way that highlights opportunities for improvement and offers solutions that employees can easily implement.
Moreover, you should always pair constructive criticism with encouragement so you can maintain a more positive tone.
For instance, you might say something like, “Your presentation was well-researched, but one suggestion I have that would have made it even better is to add clear visuals. Let’s work on creating more engaging slides for next time.”
Involve the Employee
Employee performance reviews should not be a one-sided conversation.
Having said that, you should encourage your employees to participate in these evaluations by sharing their thoughts, concerns, and aspirations.
If you’re having a tough time getting them to participate, you can try prompting them with some questions like:
- “How do you think you did this quarter on accomplishing each of your goals?”
- “Are there any skills you’d like to develop?”
- “What support do you need from me?”
At this point, you might even want to have the employee do a self-evaluation, as it can help you get into their head a bit and understand how they see themselves and any challenges they’re dealing with.
All things considered, this approach helps to foster a more collaborative discussion, as it makes employees feel more valued and involved in the process.
Set SMART Goals
A vital part of any effective employee performance evaluation is setting goals for the future.
And based on the SMART model, these goals should be Specific, Measurable, Achievable, Relevant, and Time-bound.
Setting these kinds of clear goals provides your employees with a sense of direction and purpose so they know what success looks like.
For example, you might work with the employee to set a goal like, “Increasing monthly sales by 10% over the next six months by implementing new customer outreach strategies.”
Provide Regular Feedback Beyond Reviews
Annual or biannual reviews shouldn’t be the only time your employees receive feedback.
That being said, you should incorporate continuous feedback into your management style to keep employees on track and avoid surprising them during formal reviews.
For instance, scheduling regular check-ins or one-on-one meetings to address progress offers an effective way to provide this kind of ongoing feedback and helps you build a strong, trusting relationship.
Tailor Reviews to the Individual
Every employee is different, and your approach should reflect their unique needs and preferences.
So, make sure to consider their communication style, personality, career aspirations, and other factors when structuring the review.
A seasoned employee, for example, might benefit more from goal-setting discussions, while a new hire may need more detailed feedback and guidance.
Document the Discussion
Accurate documentation is essential for tracking progress and maintaining accountability.
So, you should summarize key points discussed during the review, including feedback, goals, and agreed-upon action items.
Then share a copy of the summary with the employee to ensure everyone’s on the same page, and to serve as a reference point for future discussions.
End on a Positive Note
Whatever the results of the review might be, you should always make a point of concluding it on a constructive and motivational note.
In doing so, try to reinforce your confidence in the employee’s abilities and outline the next steps to help them succeed.
For instance, you might want to say something like, “I’m excited about the progress you’ve made and confident that with these steps, you’ll continue to excel. Let’s meet again in three months to check on your progress.”
Follow Up
After the review, you’ve got to follow up on the action items that were discussed.
Whether it’s providing resources, offering training, or checking progress on goals, your follow-through shows commitment to your employees’ development.
And if you have a tough time remembering this sort of thing, there are tons of project management tools out there that can help you track these follow-ups.
The Don’ts of Employee Performance Reviews
Employee performance reviews can be a powerful tool, but if they’re not conducted properly, they can lead to frustration, disengagement, and even conflict.
And while understanding the dos of employee performance reviews is crucial, knowing what to avoid is just as important.
With that in mind, below you’ll find several pieces of advice on what you should avoid doing when evaluating your employees:
Don’t Focus Solely on Negatives
An employee performance review should not feel like an interrogation or a list of everything an employee did wrong.
Dwelling exclusively on shortcomings can demoralize employees and make them defensive.
And even if there are areas where improvement is needed, you should try to balance the conversation by acknowledging their strengths and achievements.
Failing to highlight these positive contributions can leave your employees feeling unappreciated and disengaged.
So, try to strive for a balanced approach that includes constructive feedback and recognition of their successes.
Don’t Delay Difficult Conversations
A performance evaluation is not the time to bring up a long-overdue issue for the first time.
Because if an employee has been underperforming or violating expectations, addressing it months later during the review can come as a shock, and it’s unfair to expect employees to correct issues that they weren’t made aware of promptly.
Instead, you should make a point of dealing with performance problems as they arise and use the review to discuss how those challenges have been addressed and what progress has been made.
Don’t Be Vague
Vague feedback is one of the fastest ways to make a performance review unproductive.
Saying things like “You’re doing a good job” or “You need to improve your teamwork” without specifics leaves employees unsure of what actions they should take.
So, make sure to be clear and concrete, as ambiguity not only frustrates employees but also prevents meaningful progress.
For instance, if teamwork is an issue, you should mention specific examples of when collaboration fell short and provide actionable steps for improvement.
Don’t Compare Employees
It’s tempting to use other employees as benchmarks during performance reviews, but this can backfire horribly.
In any case, comparing one employee’s performance to that of another tends to breed resentment and creates unhealthy competition.
It also shifts the focus away from the individual’s unique strengths and development and may cause them to waste time focusing on something they cannot control.
So, instead of saying, “You should be more like Bob,” try to focus on the employee’s own goals, progress, and areas for improvement.
At the end of the day, performance reviews should be about personal growth, not competition.
Don’t Overlook Emotional Intelligence
Employee performance reviews aren’t just about metrics – they’re also about people.
And a manager who lacks empathy or fails to acknowledge the emotional dynamics of a review can damage trust and rapport.
So, make sure to avoid being overly critical or dismissive of an employee’s feelings, even if their performance has been subpar or what they’re saying doesn’t make sense to you.
This is vital for an effective evaluation because demonstrating emotional intelligence by showing understanding and support can make even difficult feedback more constructive and better received.
Don’t Ignore Career Development
Performance evaluations should not be limited to discussing what an employee is doing right or wrong in their current role, as ignoring their career development goals can leave them feeling stagnant and disengaged.
So, try to use the review as an opportunity to discuss their aspirations, potential growth areas, and opportunities for advancement within your organization.
Overlooking this aspect can lead to disgruntled employees and even higher turnover.
Don’t Let Bias Influence the Review
Bias, whether it’s conscious or unconscious, can significantly undermine the fairness, credibility, and effectiveness of any performance review.
That being said, managers should avoid letting personal preferences, stereotypes, or unrelated incidents color their judgment.
Evaluations should be based on objective data, specific examples, and measurable outcomes, as a fair and unbiased review process fosters trust and ensures all your employees feel they are evaluated based on merit and not favoritism.
Do you need some help with employee performance reviews? Visit our performance management page for more information or contact me today to find out how I can help.
Personal Development, Productivity, Team Management