Performance management is defined as an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organisation.
Extensive research shows that performance reviews/appraisals play a major part in ensuring employees feel engaged and motivated at work, which ultimately leads to better productivity, decreased staff turnover and therefore a successful organisation.
However, a high proportion of both managers and employees have said that they see performance reviews as a ‘box ticking’ exercise which the managers ‘do’, and the employees ‘receive’. This is likely to leave both sides disengaged, making the whole review process ineffective and counterproductive.
To ensure that the performance reviews within your organisation are adding value and engaging/motivating your employees, we have included a few tips that may help:
- Make it a two-way process – Get your employees involved and listen to them. Use the reviews as an opportunity to discuss their achievements, their role and the importance of their contribution. Encourage them to take ownership and set their own goals and objectives which meet their personal aspirations as well as those of the business.
- Look forwards – As much as it is important to acknowledge what has/hasn’t gone well since the last review, the focus should be on looking to the future, developing people’s talent and aligning this with the objectives of the business.
- Agree on three top actions – Having a long list of goals that are unachievable is counterproductive and will just overwhelm your employees. Instead identify three goals which are going to motivate the employee and contribute to making the business a success.
- Review regularly – A meeting once a year isn’t going to keep your employees engaged. Aim to discuss their progress at least quarterly to ensure the actions are still relevant and the employee is on track.
- Transparent communication – Employees want their managers and leaders to always be open and authentic. On top of this, they want real-time communication while building healthy relationships with their managers. This will involve regular feedback and honest discussion, even when such communication is difficult or uncomfortable.
Performance reviews are more effective when managers have a healthy relationship with their employees, as the conversation naturally becomes two-way, making it more meaningful and valuable to both employer and employee. However, a quarter of employees believe their manager sees their annual review purely as a “tick-box” exercise, according to an Investors in People (IIP) report.
A survey of almost 3,000 respondents, for Investors in People (IIP), found nearly half (44 per cent) of employees don’t think their manager is always honest during appraisals. Although appraisals are becoming more common in the workplace, less than half (41 per cent) of employees who receive appraisals feel they are a useful assessment of progress, with only a few having faith in their manager taking action on what they talk about. A fifth of employees surveyed say their boss “rarely” or “never” bothers to follow-up on their concerns (People Management).
There is no ‘one size fits all’ approach with performance reviews. They must be personal to that specific employee and their performance and future development. The two-way conversation should include:
- Asking good questions – When to use open or closed questions, and how to probe in a way that encourages people to expand on their experiences, views, or feelings.
- Active listening – To take in what is being said, notice body language, help people clarify and respond in a way that helps the conversation.
- Giving constructive feedback – Focusing on evidence and actual examples, not subjective opinion, reinforcing positives and strengths (see above), and knowing when to be directive and when to take a coaching approach.
In summary the benefits of performance reviews do outweigh any negatives, the only negative would come from how the performance management culture is embedded.
You may wish to watch back our ‘Performance Management’ webinar, as well as our other previous webinars here.
