Performance Review Series Part 2: How to conduct them successfully

Part 1 of the Performance Reviews Series gave an overview of what they are and the various formats they can take. In this blog, Isobel looks at how to successfully embed performance reviews into a business and ensure that they have a positive impact, rather than being seen as just a tick box exercise!

By Isobel Hallam

Firstly – consider the format and regularity

The format of the performance review needs to fit with the style of your business and your culture and values. If your values are people-focused and encourage regular, open communication, there is no point enforcing an annual written performance review as it won’t motivate the people you have in the business!

Also, who says they have to take place annually? My problem with annual performance reviews is that they are loooong and duuuuull and require you to remember situations that happened right at the beginning of the year! If, like me, you have the memory of a goldfish, you’ll find that key achievements are missed off the appraisal form, simply because you’ve either forgotten about them or you’ve been there, got the T-shirt and moved on to bigger and better things!

Performance development is a continuous process, so why not continually review it? It doesn’t have to be a long drawn out process, or even particularly formal, but this way, feedback is regular, achievements are recognised and congratulated and mistakes are picked up on sooner rather than later.

Launch and Pilot

It’s important to launch the performance review process, rather than simply dive in head first. This way, expectations are clearly defined, and everyone has received the same training as to how to complete a performance appraisal.

It might be that someone raises something at this stage that causes you to alter the process or the questions slightly.

By piloting the process for a defined period, you can get real-time feedback and adjust the process afterwards to improve its efficiency. 

Ok – so what’s the positive impact?

Once you’ve sought, responded to, and taken feedback on board and everyone (the majority) is happy that the process in place is the correct one for the company, you should find:

• Communication becomes more regular, and more natural and the company gets a clearer view of existing skills and potential – including how the team can help each other.
• Stronger working relationships are created through open communication, especially between line manager and direct report.
• As a result, employees tend to find there is less of a hierarchical barrier and a new-found level of mutual trust and confidence.
• Employees are satisfied that there is a consistency in terms of how performance is monitored.
• There are more opportunities to recognise good performance, causing employees to feel valued.
• Opinions are sought more regularly, and staff feel involved with the direction the business is heading in.
• Valued employees are more motivated to succeed; hence they strive to perform better.
• If you’re engaged, you’re more likely to stay; this directly correlates with higher retention rate.
• Stronger performance inherently results in client satisfaction and improved organisational results.
• Potential employee relation issues may be established sooner and nipped in the bud before they cause disruption and divisions within the team. Therefore, stronger team relations and a positive working environment!

If your business could benefit from a tailored and engaging performance review process, the HR180 Heroes will come to your rescue. Give us a call today on 0113 287 8150.