Some companies are moving away from using a performance review. The issue with these reviews is if they become the only or major source of manager-worker discussion.
A good performance review has 3 major pieces:
1. Drive Results
It should identify employee’s good behaviors and results the employee carried out in the previous time period. In addition, it should lead to improved results and increases in employee’ performance.
2. Clear Expectations
When the review is completed, both parties should be clear on and agree to the direction both will take going forward and expected outcomes. Moreover, it should schedule subsequent followups – kind of mini reviews. Measuring performance and giving feedback shouldn’t only be a once per year big event.
3. Relationship Building with a Performance Review
It’s true that loyalty results when the manager and employee form a partnership approach. An ongoing performance review process builds a relationship and connection between the manager and team member. It makes it easier for an open and honest discussion when a difficult situation arises.
Surveys point out nearly half of HR professionals don’t believe an annual performance review assesses employees’ work correctly. But, it’s even more unfortunate that over half of employees also don’t regard reviews as accurate. Likewise, almost 54% of employees don’t believe an annual performance review motivates their performance.
Managers can’t make this a one time a year review of results. So, follow-up after the review is critical. Feedback by both parties should be continuous to make the annual performance appraisal most helpful.
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