Performance Reviews: From Pain To Gain

Getting Performance Reviews Right

Performance Reviews: From Pain to Gain

Does anyone love performance reviews? They can cause anxiety for both the employee under review and the reviewer. PayScale compensation consultant Mykkah Herner argues that it doesn’t have to be this way. Performance reviews can and should be a means to empower business, not a painful box-checking exercise.

How to Make Performance Reviews Better

Successful performance reviews require planning and preparation, according to Herner. To truly understand how their employees performed, managers should start by evaluating the entire period under review, not just the recent past.

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Because each performance review also looks forward to the next quarter or year, having clear goals is key. Setting goals correctly also helps the business grow as you provide incentives for employees to drive business success. Herner reminds us to tie reaching goals to receiving a reward, which could be monetary or it could also be recognition.

What to Do During the Evaluation

During the evaluation, focus on communication and establishing the right environment, advises Herner. The reviewing manager should make the goals and expectations for the year clear. Be sure to explain which metrics will impact the next performance review. Herner reminds us it is essential that the employee sees they can achieve their goals. Try to get buy-in during the review.

Setting the right environment keeps the focus on the positive work of the review, Herner tells us. Conduct the interview in a closed room and be sure to schedule all of the time needed. Explain how you analyzed their performance and give them the chance to discuss. Be sure to very clear about the goals. Before the meeting is over, establish check-ins throughout the coming period, before the next review.

What to Do After the Evaluation

Even the best performance reviews will have minimal impact if they are not part of an ongoing process. According to Herner, you should create regular check-ins with your employees to talk about where they are. Making employee goals part of a regular discussion helps keep employees focused on how they can get the raise they want and gives the business an added boost as managers reinforce company needs.

One last thing, if you are going reward performance, make sure your employees feel rewarded. According to a recent poll by the Society for Human Resource Management (SHRM), employees believe that they are truly being rewarded when receive a 7 percent or greater raise.

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