Tips for writing effective performance reviews
The performance review has become a tradition in business, but many managers fail to benefit from these important discussions. When used properly, the annual review process can provide managers with real insights. They can reveal things from employee perceptions of the company to ways to make the firm better and more profitable. When not properly used, the annual review process is worse than useless; it becomes a waste of time and may foster resentment and bad feelings among the rank and file workers.
Whether your business has been using annual reviews for years or you have just implemented such a policy, it is important to use the process to its full potential. You may need to adapt these ideas to meet the needs of your own business and employees. However there are some things all managers can do to make the reviews they give more useful to themselves, their workers and their business.
Concrete Goals
One of the most frequently cited sources of frustration on the part of workers is the lack of concrete goals. Many companies and individual managers set goals that are vague at best; this makes it difficult for employees to tell how they are doing.
That lack of specificity can be a real problem when annual review time rolls around. Without concrete, measurable goals managers cannot fairly assess each worker and assign proper grades for each area of responsibility.
Setting goals that are easy to identify is one of the smartest things you can do to make the annual review process more productive. If you have not already established clear goals for your small business, this is where you need to start. Use your business plan to provide more concrete goals for your workers. This can help everyone and allow you to get more out of the annual review process.
More Than a Once a Year Discussion
Another problem with the annual review process is it takes place just once a year. Just think about how difficult it would be to manage your employees if you only had one discussion a year, and you will quickly grasp the inherent limitations of the annual review process.
To make the most of the annual review process, use the goals identified at the last review to guide frequent discussions with each of your workers. These sessions do not have to be extensive, or even formal. They can consist of something as simple as a quick chat over lunch or a post-meeting discussion.
No matter what form these discussions take, they can make the annual review process more useful. The more you know about where each of your workers stands regarding their previously set goals, the more effective the annual review process will be.