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What is Performance Review Plus Learn its 10 Benefits!

What is Performance Review Plus Learn its 10 Benefits!

It’s almost the end of the year, which means that aside from the holiday season, you also need to prepare for your employees performance review. But what is a performance review and how do you get ready for it? While some employees look forward to a one-on-one conversation with their boss, others dread it, especially if they didn’t perform well the past year.

Why is Performance Appraisal Important?

Performance reviews or appraisals are beneficial to you and your company because aside from your company’s expectations, these discuss your employees’

  • work performance

  • company’s expectations

  • accomplishments & areas for improvement

Performance reviews are also an excellent way to end the year and prepare your team for next year’s duties.

10 Benefits of Performance Review

Performance reviews let you touch-base with employees you normally interact with in a group setting. By meeting with them one-on-one, you make them feel valued, especially when you give constructive feedback and recognize their accomplishments. Here are the benefits of this annual practice:

1. Highlight their achievements. Work can get fast-paced, and you may forget to give your employees a pat on the back for a job well done. Before you lauded them for beating a near-impossible deadline or for that instant troubleshooting to complete a task, you might have already moved on to the next big project. This is your chance to let your team members know that yes, you remember the excellent work they’ve done. Just remember to do your homework before the review by reviewing past projects and performances. 

2. Talk about their scope of responsibilities. During onboarding, you filled your employees in with their specific tasks and duties, giving them a clear picture of their expectations. But have things changed since then? Sometime during the year, operational adjustments and leadership changes may have happened. Have these impacted your workers’ job nature or load? If such is the case, now is the perfect opportunity to talk about their roles and needs.

3. Give feedback for improvement. Some managers avoid giving a negative performance review, which only makes your company suffer. Pinpointing performance issues early on gives your employees a chance to do better and steer clear of being dismissed. When giving a review, state the specific skills and areas they need to work on and instances wherein they fell short. Encourage them to be self-aware so they can avoid callouts.

4. Tell them their strengths. After discussing their weaknesses, it’s time to talk about their strengths that are crucial to the business. Employees may not be aware that they’re doing something wonderful, and it doesn’t hurt to remind them about it. At the same time, this helps boost their confidence, keeping them motivated at work.

5. Share your expectations. Employees can deliver better if they know what you expect from them. What are your criteria for excellent performance? This helps your team to adjust their work process to meet company standards. Invite them to look at things from the company’s perspective—which is good training for potential managers.

6. Emphasize the company’s goals. What are your company’s priorities and what does it hope to achieve in the coming year? Sharing this knowledge helps employees to put their work in perspective, letting them understand their duties’ end goal. It also develops their business sense and the ability to examine the big picture.

7. Prepare them for coming changes. Your company may be facing some changes in the year ahead. If your employees will benefit from this knowledge, then go ahead and talk about the future plans. Your members will appreciate the heads up, letting you gain their trust and confidence. This also shows you concern, allowing employees to better prepare for the changes mentally and emotionally, saving them from imminent stress.

8. Discuss their career plans. Show your interest in your employees’ professional growth by asking them about their career plans. This helps you gauge who will stay in the company and who are likely to leave in the near future. Be an advocate of their career goals by suggesting steps that can help them advance and improve. It costs more to train new hires than to keep experienced workers, so retaining employees is your best bet in promoting business continuity while keeping your workforce satisfied.

9. Hash out future work. While it’s great to think about your employees’ long-term goals, it’s also beneficial to talk about the projects for the coming year. This gives them an idea of what to expect after the holiday season. Briefly prepare them for upcoming requirements and timelines, so they won’t get overwhelmed.

10. Encourage self-development. Are there particular skills your employees want to develop outside their role? Projects they want to take on? By knowing what your workers want, you can strategize about incentives that will make employees want to stay in the company. It’s a win-win situation—they get to learn on the job and you get to keep them.

Tips in Conducting a Successful Performance Review

Reap the benefits of a good performance review from your employees through their productivity, engagement and fulfillment. To boost your chances in holding a smooth and successful evaluation, here are some pointers:

Choose your setting well.

A conference room is often the default setting for this kind of meeting, but it may be too formal, discouraging your employees from opening up. For a change, try holding the performance review in a cafe or a garden to lighten things up. A more casual setting can put employees at ease, helping them to converse more easily.

Keep it professional.

Make sure to keep your focus on work and the employee’s personal traits. For instance, the employee may have a hard time expressing themselves, which you shouldn’t hold against them. Encourage them and be patient–your attitude goes a long way in drawing out their honest views critical to your company’s improvement.

Start the meeting with their self-evaluation.

To kick off things, have the employees evaluate themselves first. Aside from breaking the ice, this lets you assess how they see themselves. This gives you valuable insight into how your team members perceive their job and their role in the company.

Avoid comparing.

Avoid comparing the employee’s performance with their teammates. This not only lowers their morale but can also cultivate resentment toward you or with co-workers. Each individual has their unique strengths and weaknesses. So, choose your words carefully to uplift and not bring someone down.

Give a memorable performance review!

Bring the best out of your employees by giving them support and encouragement! Looking for your next people? #SeekBetter by creating or updating your company profile in JobStreet to access the Talent Search page. Remember to drop by our Insights for more expert advice and industry news.

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