Performance reviews can be game-changers. When done right, they can foster communication, improve the company culture, increase productivity, and help employees succeed on their career path.
Sadly, many employees see evaluations as mere hoops to jump through, feeling they're unproductive or barriers to raises and promotions. Let’s look at some top HR strategies for making employee reviews really count and work effectively.
What’s the Purpose of an Employee Performance Review?
Effective performance appraisals should tell employees where they excel and where they can improve. They should also provide employees with a road map to reach their next career step. Of course, an employee review should cover performance, productivity, attendance, communication, attitude, and teamwork. If the employee is the head of a department, it should also include how well they delegate tasks and manage the other employees in their department.
What to Include in an Employee Performance Review
Let’s look at what you should include in the review, and how you can make the process as effective as possible.
The Employee’s Self-Evaluation
Before the performance review, have the employee complete a self-evaluation. Ask them to list their accomplishments, strengths, overall performance, any challenges faced, and areas for improvement. You can also have them include anything they feel they need to perform their jobs better, such as training or mentoring. This helps the employee evaluate their own performance and assess themselves before their official review.
The Employee’s KPIs and Time and Attendance
When managing employees, it's essential to review their attendance. You can prepare for this discussion by reviewing their KPIs or badge swipes. Did the employee meet or exceed all of their key performance metrics? Did the employee meet all of their deadlines for their projects? Did the employee log in on time or show up on time for work?
Discuss each metric, and explain whether the employee did well or needed improvement, and give the employee a chance to respond.
Your Observations of the Employee’s Performance
Certain elements of the employee performance review are based more on personal observations than hard data, which can challenge objectivity. To navigate this, it's wise to keep a running record of your observations throughout the year. This offers concrete examples to reference during the appraisal. Remember to jot down moments of excellence to ensure a well-rounded feedback session.
Remember to Discuss the Why and Hows
Many employees don’t fully grasp how they impact the company and make a difference. Throughout the performance review, let the employee know how their actions affected the company and why they are essential for the organization. For example, rather than chastising the employee for some late reports, explain how those late reports impacted the project and made other employees’ jobs more difficult.
Also, listen to the employee explain why the reports were late. Was the employee waiting on crucial information from a different department? Was there anything the company or departments could have done differently to ensure the reports were completed on time? Remember, the employee performance review is a dialogue as well as a way to evaluate your employee’s productivity, fit, and future with your company.
Set the Stage for the Future
Too often, the employee evaluation is the beginning and end of feedback and performance. This can make the employee review another thing to check off rather than a way to help the company and employees improve.
Instead of simply getting through the employee reviews, set the stage for the future. Offer clear milestones for the employee to achieve and outline a roadmap to reach them. If the employee needs more training, ensure the extra training is provided.
Lastly, follow up throughout the year. Let the employee know where they excel and how they could improve other areas of their performance. You could also go above and beyond by providing the employee with a development plan and career trajectory. This helps employees understand where they are and what they need to do to advance within the organization.
Performance Control Help from Payday Payroll
Employee performance management shouldn't be a once-a-year rush but an ongoing commitment. The good news is that you can make performance management engaging and effective with Payday Payroll’s Performance Management Solutions.
Our performance management software allows your company to improve transparency and accountability while providing feedback and improving workflows all year long.
Our cloud-based solution lets your managers and HR staff view and manage your data whenever needed. You’ll be able to track employee training and continuing education and reward your employees for meeting or exceeding their performance and training goals.
To learn more about how our performance management software can help you streamline your employee appraisal process and to get a quote, contact us today.