Simply uttering the words “Performance Review” can make both managers and employees want to run for the hills. Knowing what to include in a performance review can be tricky. How can you deliver useful and productive feedback that adds value to the business, to managers, and to employees? With millennials quickly becoming the dominant generation in the workforce, this topic is more important than ever because as a group, millennials crave feedback. Here are 4 tips to help bring your performance review process up-to-date:
1. Determine a Schedule that Makes Sense for Your Business
To do this, here are some questions to explore. Do you have a workforce that craves feedback? Do you have a lot of employees who are new in their careers, or who lack experience? Are there a lot of current performance issues that need to be addressed? Do you have any company events, projects, or busy seasons that would make having reviews during that timeframe more stressful for everyone? How long has the current review schedule been in place and is it still serving you well? Your answers will help you notice if you should consider changing the frequency or timing of reviews.
2. Make the Process Easy & Valuable
Spare your managers and employees the frustration and stress that comes with a complicated and time-consuming review process. Make the format as simple as possible. Limit the number of questions you ask and keep the wording simple and straightforward. The goal is to provide value to management and employees, which means you need to ask questions that will naturally offer an opportunity to discuss positive and constructive feedback in an approachable, useful, and valuable way. In most cases 5 to 8 questions will be enough but choose your questions wisely. Focus on a few strategic, high-value questions. Here are some examples:
- Questions for Managers: What strengths does this person exhibit in their work? How well does this person demonstrate our core values? What is this person’s biggest accomplishment this year? What did not go as planned for this person this year and what did they learn from that? What would you like this person to start doing and stop doing going forward? What is this person’s most important area for development and how will you support them in this area going forward?
- Questions for Employees: What strengths do you exhibit in your role? How well do you demonstrate our core values? What are you most proud of this year? What did not go as planned for you this year and what did you learn from that? What would you like to do more of, or less of going forward? What development areas are most important for you going forward and what support would you like?
3. Avoid Surprises
The content in a performance review should never be a surprise for employees. The approach of “saving” feedback for formal reviews does everyone a disservice. Positive and constructive feedback should come in the moment (when appropriate) throughout the year. When employees know their manager will be up front with them, this helps them know what to expect and helps them feel more confident in themselves and their work. Managers should address performance challenges with employees when issues arise, and these conversations should be documented even when informal feedback is given. A formal review should never be the first time an employee hears about a performance issue.
4. Don’t Connect Reviews to Raises
So often we see performance reviews and raises tied together, but they don’t need to be. In fact, when you separate the two you break the stigma that employees must receive a particular “score” in order to be eligible for a certain raise. Removing money from the performance review equation takes a layer of intensity and stress out of the conversation too. Raises certainly take performance into account but separating that conversation helps keep the actual performance review conversation focused on what it should be—feedback. Instead of combining performance reviews and raises, consider having raises at designated times like anniversary dates or when an employee receives additional experience, certifications, or responsibilities.
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