How to make performance reviews a success factor of your staff development
In today’s labour market, the competition for the best talent is becoming increasingly intense. Therefore, performance reviews are more and more important when it comes to retaining talent. With the right preparation and a positive approach, performance reviews can help give employees fresh momentum. Seeing performance reviews as an opportunity rather than a burden will make them a key management tool for your organisation. We show you how to tangibly improve your employee appraisals.
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What types of performance reviews are there?
Performance reviews are meetings between employees and managers or HR that take place aside from everyday communication in the workplace. They are conducted periodically as and when required or spontaneously and are also called employee appraisals. There are different types of performance reviews:
How your staff development benefits from performance reviews
A company that wants to hold its own on the market will ensure trustworthy and efficient communication with its employees. An effective performance review benefits the organisation and its staff. These are the key benefits for you as an organisation:
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A good working atmosphere: Constructive communication makes employees more content.
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Insights into the staff mindset and emotional state: You gain transparent information about how your employees are doing and can show empathy in addressing obstacles and possibly removing them.
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Overcoming problems and conflicts: Creating space for a meeting helps to resolve conflicts at an early stage. You can address problems directly without having to wait until your employees take action.
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Stronger commitment and loyalty to the organisation: Performance reviews show employees that their voices are heard and understood. This will increase how strongly they identify with the organisation,
resulting in your employees being more content and feeling at home in your organisation. You will see a decrease in sick leave and resignations and an increase in employee productivity. This will save you time-consuming offboarding processes and will lower your recruitment costs.
Before a performance review
The importance of preparing for an employee appraisal is often underestimated. Busy working days make it easy to assume that you are aware of all the relevant discussion items and therefore don’t need to prepare for it. However, good dialogue or the ability to improvise is not always enough.
To ensure successful performance reviews, structured preparation is vital. Where will the meeting take place? What are the objectives of the meeting participants? How will you prepare for your meeting partners? You can find out all of this in our three guidelines for preparing performance reviews.
Before looking at the elements and details of the performance review, consider some basic organisational aspects:
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When and where will the performance review take place?
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Who will participate in the meeting?
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Is the meeting room available and ready at the booked time?
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How long will the employee appraisal last?
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Have you informed the participants about the date and the topics to be covered?
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Have you prepared the necessary documents?
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Who will moderate the meeting and/or meeting parts?
Choose a date and location for the performance review that ensures that the meeting is taking place in a pleasant atmosphere without disruptions. The duration of the meeting depends on the occasion and the participants—there are no fixed guidelines for this.
Before looking at the elements and details of the performance review, consider some basic organisational aspects:
-
When and where will the performance review take place?
-
Who will participate in the meeting?
-
Is the meeting room available and ready at the booked time?
-
How long will the employee appraisal last?
-
Have you informed the participants about the date and the topics to be covered?
-
Have you prepared the necessary documents?
-
Who will moderate the meeting and/or meeting parts?
Choose a date and location for the performance review that ensures that the meeting is taking place in a pleasant atmosphere without disruptions. The duration of the meeting depends on the occasion and the participants—there are no fixed guidelines for this.
A performance review is a meeting with specific goals. Managers and employees will each strive for a specific outcome of the meeting. The more clearly defined the envisaged goal is, the better the participants can prepare for it and the easier it is to review the outcome.
To achieve the goals you set, think about what topics you would like to cover during the performance review. The following check-list will help you ask yourself the right questions prior to your meeting:
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What is the reason for the employee appraisal?
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What topics do you want to cover?
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Do you have enough information about the meeting topics?
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What are your goals for this performance review?
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What arguments will you use to achieve your goals?
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What counterarguments can you expect?
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How will you structure the employee appraisal?
A performance review is a meeting with specific goals. Managers and employees will each strive for a specific outcome of the meeting. The more clearly defined the envisaged goal is, the better the participants can prepare for it and the easier it is to review the outcome.
To achieve the goals you set, think about what topics you would like to cover during the performance review. The following check-list will help you ask yourself the right questions prior to your meeting:
-
What is the reason for the employee appraisal?
-
What topics do you want to cover?
-
Do you have enough information about the meeting topics?
-
What are your goals for this performance review?
-
What arguments will you use to achieve your goals?
-
What counterarguments can you expect?
-
How will you structure the employee appraisal?
An objective performance review will always have a personal aspect. The better the relationship between the meeting partners, the more efficiently they will understand the topics covered and reach an agreement. In any case, it will help if you prepare mentally for your meeting partner. These questions will help you:
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Do you feel prejudiced towards the participants? Do you like/dislike them?
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How do you rate the relationship between yourself and the employee?
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Do you have experience from previous employee appraisals?
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What do you know about the employee, about their personal and working life?
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What objectives might your employee pursue during the meeting?
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How will you respond if the performance review becomes too emotional?
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What objections do you expect?
By analysing your meeting partner in advance, you will be better able to respond to the unexpected during the meeting.
Thorough preparation enables you to keep the meeting to a reasonable duration, to focus on your objectives, to achieve or at least work on them and, ultimately, to achieve an outcome that is acceptable for both parties.
An objective performance review will always have a personal aspect. The better the relationship between the meeting partners, the more efficiently they will understand the topics covered and reach an agreement. In any case, it will help if you prepare mentally for your meeting partner. These questions will help you:
-
Do you feel prejudiced towards the participants? Do you like/dislike them?
-
How do you rate the relationship between yourself and the employee?
-
Do you have experience from previous employee appraisals?
-
What do you know about the employee, about their personal and working life?
-
What objectives might your employee pursue during the meeting?
-
How will you respond if the performance review becomes too emotional?
-
What objections do you expect?
By analysing your meeting partner in advance, you will be better able to respond to the unexpected during the meeting.
Thorough preparation enables you to keep the meeting to a reasonable duration, to focus on your objectives, to achieve or at least work on them and, ultimately, to achieve an outcome that is acceptable for both parties.
During the meeting: Characteristics of a good performance review
The manager is responsible for the success of a performance review. You have the necessary experience and need to ensure that the basic rules of conducting a meeting are followed. So, the manager decides whether valuable insights will be gleaned from the meeting. Conducting performance reviews is not rocket science. The following seven tips will help you make the most of your performance reviews.
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Tip 1: Start with the positives
After a friendly greeting and a brief explanation of the purpose of this employee appraisal, start your dialogue with a positive question. For example: “What do you like about your work?” Then take the time to discuss your meeting partner’s answers to these questions. This will create a positive and open atmosphere.
Tip 2: Let your employee speak
Conducting a performance review doesn’t mean that the manager launches into a monologue. Rather, try and give the employee the chance to take up the majority of your meeting time. This will encourage them to open up to you.
Tip 3: Ask open and engaging questions
Engaging questions can enrich and guide a performance review. However, make sure that questions are not misinterpreted as demonstrations of power. Avoid reproachful questions such as “Why haven’t you finished that yet?” Advice is often not helpful. Let your employee find solutions themselves. Use questions to convey honest interest and encourage your employee to reflect.
Tip 4: Give praise and address problems
Giving praise and addressing problems are the keys to a good working atmosphere. Addressing mistakes or errors your employee has made is the only way for them to improve and increase productivity. This calls for courage and tactfulness.
Tip 5: Show your appreciation
Show respect to your counterpart as a person. Always keep in mind that their opinions and actions will most likely differ from yours. Do not blame them for that. Try and find a solution that is acceptable to both of you.
Tip 6: Give suggestions
Constructive criticism can be voiced in different ways during a performance review. It is important, however, not only to criticise but also to make suggestions for improvements. The same applies if you want to share something positive with someone. After all, even good performance can be improved further in future.
Tip 7: Also talk about "soft factors"
Performance reviews normally include an assessment of the figures and targets achieved. Don’t forget to also consider "soft factors", such as social skills to remind your employee that you are assessing their overall performance.
After an employee appraisal
It is vital to implement the agreed measures and to show this during day-to-day work. Nothing drives an employee’s desire to change jobs more than managers who let decisions or agreements simply fizzle out. This is why it’s very important to document the results of the performance review and to develop a plan about how to implement the topics covered. One option would be to make a note of the meeting topics in the personnel file so that you can refer to them during your next meeting.
Conclusion: Make more of your performance reviews
Your staff will go into their employee appraisals with a certain level of expectations. They want to communicate, receive approval, share their frustration or maybe discuss their salary. Give the meeting participants room for honest feedback and take the time to listen closely. A well-prepared and productive performance review can be very inspiring for all parties involved. It is important that you document the meeting and follow up by drawing conclusions to work on improvements together with the employee.
For more information about these subjects, contact your nearest Hays subsidiary or download our Loyalty Guide with ideas about how to retain your employees.
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