Why performance reviews are more important than ever

The last year has redefined nearly every aspect of how we work and do business. Companies (both big and small) have to reconsider everything from where work happens to how to measure and manage employee performance.

With the effects of the pandemic still lingering, it’s clear now, more than ever, that consistent communication is key to a successful employer-employee relationship. And not just providing information or feedback TO employees, but also providing the opportunity to receive feedback FROM employees. With things returning to normal and employees possibly going back to the office, it’s the perfect time to think about how you can navigate post-pandemic performance reviews in the short-term and truly build an avenue for continuous, regular communication in the long-term.

Whether it’s to build trust with new employees or strengthen relationships with top talent to retain employees, now is the time to re-evaluate your evaluation process and organizational priorities. Here are some strategies to start with and best practices we’ve built through years of assisting our clients do exactly that.

Start fresh

Whether it was a goal set for personal or business growth, anything pre-pandemic should be reviewed for relevancy or set aside in favor of something new. Personal development, technical skill building or other ways to help the business should still be the top consideration for how to frame a goal-setting discussion, but consider how old goals must change and what new goals should be added that may never have crossed your minds before.

Individualize your approach

The line between home and work was blurred beyond recognition and it wouldn't be a good idea for employers to try and draw it back in like the pandemic never happened. Instead, embrace this newfound understanding of each employees’ needs.

Rather than keep things separate during a performance review, take time to acknowledge and understand an employees’ personal constraints and strengths. Consider the challenges each person and business faced uniquely and applaud efforts to overcome them together. Find a way to mirror that effort moving forward with more flexibility and thoughtfulness.

Open the conversation

When you think about the traditional performance review, what comes to mind? Probably an employee survey, maybe some peer reviews or standardized questions to answer about hitting a predetermined mark. A manager often uses this time to talk rather than listen. Especially if the feedback isn’t 100% great, this can be very difficult for employees to feel comfortable providing input or taking the lead between performance reviews. By making performance reviews more conversational, an employee feels more in control, goals feel more achievable and there’s the added benefit of increased employee engagement.

Always, always do an annual review

We’re most often asked about how often performance reviews should be done. While having ongoing and open communication is the most important, an annual performance review for every employee is a must. This is the opportunity to review and update an employee's job description, do an overall review of the employee's performance, as well as review salary, set new goals and celebrate milestones.

Even if your business was unable to increase salaries over the last year or two, it is still important to connect with your employees and have conversations about what’s happening with them and the company. At a minimum give your employee the comfort of knowing that you are paying attention to their growth and are recognizing their effort. If an employee has taken on new responsibilities, write it down. Tell them it’s something you see and appreciate.

It’s been proven time and time again that employee appreciation leads to higher employee engagement and increased employee retention. Whether or not you can provide that bump in pay, consider using this annual review as a chance to give your employee a gift that truly reflects how much you appreciate their work.

Increase the frequency

To make performance reviews more effective and easier on both managers and employees, we recommend regular conversations revolving specifically around employee growth, performance and contribution. Depending on your business, this could mean something quarterly, bi-monthly or monthly (in addition to annually). 

These are just more chances for focused face time and recognition of ongoing effort. Something as simple as a 30-minute conversation with a little pre-work can go a long way. Discuss what went well this month (a perfect time for positive feedback and chance to show appreciation), what could have gone better (addressing difficult topics and providing constructive feedback quickly keeps progress from stalling and everyone moving in the right direction) and then focus on what’s next. These “mini-reviews” should focus on the more recent days and center around keeping goals and targets as up to date as possible.

At the end of the year, a performance review should not be another box to check and the content of the conversation should never be a surprise. 365 days between reviews is a long time to wait to give and receive feedback. By setting yourself up with routine check-ins and a more sustainable way of sharing appreciation, you can keep your business and employee growth on track, build a solid foundation for employee engagement and even improve employee retention.

Let us know how we can help you build a strategy for performance reviews that helps support your business.