How to Conduct a Proper Employee Performance Review

Did you know that employee retention rates increased by 23% because of performance reviews?

Conducting performance reviews is a crucial part of being a manager in any business. You oversee your employees and see how well they’re performing, so you can help them grow as employees and work on decreasing turnover.

But how do you conduct reviews that will make both your employee and yourself satisfied with the process?

We’re here to help you out. Keep reading below to find out how to conduct a proper employee performance review.

What Is a Performance Review?

The Performance review is also called performance appraisal or performance evaluation. This is evaluating an employee’s performance in their job.

Businesses do this every 3-6 months for employers to gauge how their employees are doing. This is essential for a business or company and is also beneficial for employees.

The Review Details

When conducting a performance review, inform the employees of the details before the review. Let them know the objectives and your expectations for the review. This will give them time to prepare for the evaluation.

Explain to them what will happen in the review and let them know about the flow of the review. A better understanding of the review process is convenient. For both the evaluator and the employee.

Outline The Process

Before you start the review, begin by researching the employee. Look at their work samples and their performance and attendance. You can also consider getting feedback from their supervisor.

Gathering the feedback of their coworkers may also be helpful in order for your performance evaluation to be organized. Outline the process.

List down what will happen in the review and how you will evaluate your employee. List down the questions that you will ask them. Use their work samples and the feedback of their supervisor as a basis for the comments you will give them.

Give Transparent Feedback

When conducting a performance review, it is important to be clear, concise, and honest in your feedback. Avoid using generalities or vague language. Take the time to point out specific areas of improvement.

Refrain from prolonging the review. If possible, do not give side comments that are indefinite. Be straight to the point so that your employee could understand what it is you want to say.

Avoid Bringing Up Personal Issues

It is also important to maintain a fair perspective and avoid any personal biases. Once you have any concerns about an employee’s performance. Address them early on and work with the employee to create a plan for improvement.

Remember, a performance review is a constructive dialogue between you and the employee. Not a one-sided criticism. Be sure there is communication between you and your employee, and that it is not just you talking.

There are plenty of common mistakes to avoid when conducting a performance review, know them and their solutions.

Provide Positive Reinforcement

Use the review as an opportunity for you to provide positive reinforcement. Compliment or commend your employee in the aspect of work in which they excel. Make sure they know they are doing a good job in that aspect.

This will encourage them to work harder. Some will even try to work better than before. This is also a way to keep them motivated in doing their job, knowing that they are doing it right.

Set Goals

It is inevitable to find an employee having a hard time in their work. In these cases, you can set employee performance goals for them to accomplish so they can improve. Give them goals that will help them to do better in their work.

Yet, make sure they are able to handle the goals that you give them. These goals will give them the chance to improve their employee performance.

Here are some employee goals that may be helpful to you, know more about them.

Document The Review

The most important thing when conducting a performance review is to document it. Documenting the content of your evaluation will help you in future performance reviews.

Use the records of your review to evaluate the same employees for the next performance review. You can use these documents as a basis for knowing whether your employees have improved or not.

These records will also be useful for your employees. Your documents will contain your comments and feedback in the review. This will let them know where they need to improve and where they excel.

Follow Up

Once an employee performance review is done. This does not mean that you are going to wait for the next review to know their progress.

As an employer, you need to follow up on their performance weeks after the review. It can also be a month before the next review.

This will also give you the chance to give them a new set of goals if the one you gave before doesn’t seem to be working. Or commend them if they are doing a good job of accomplishing the goals you have given. This is one of the important parts of employee performance management.

Be Flexible

There will be situations in which an employee will not be able to undergo the scheduled review. So you will need to reschedule. In these situations, as you are the employer, you have to be flexible. 

Reschedule a date that will be convenient for your employee. Be sure that they are prepared and well-oriented before beginning the review. As an employer, you need to prepare to compromise anytime.

Employee Performance Review is Important

An employee performance review is an important tool for businesses. It can help businesses identify areas where employees need improvement. This also identifies strategies to improve employee productivity.

To properly evaluate employee performance. Managers should monitor not only an employee’s individual achievement. But also how those achievements contribute to the organization’s goals.

Also, it is important to give employees clear and specific feedback. To help them improve their performance. Make sure you stick to this process and continue giving proper evaluations to grow your team from here on.

For more tips on improving your business, guides on growth hacks, and more, check out our other blogs today!