What does a performance review entail?
A performance review is a structured process where an employee’s performance, competence, and contribution to the organisation are assessed and discussed. It is an opportunity to provide feedback, identify strengths and development areas, and set goals for the future. A performance review is more than just an annual formality. It should be part of a continuous dialogue between the employee and manager, and a tool to promote both individual development and the organisation’s overall success.
An effective performance review focuses on both results (what the employee has achieved) and behaviour (how the employee has worked). It takes into account both the individual’s and the organisation’s goals, and ensures that they are aligned with each other.
The value of regular performance reviews
Regularly conducting performance reviews provides a multitude of benefits, for both the employee and the organisation. It creates an opportunity for open and constructive communication between the employee and manager. By regularly discussing performance and development, misunderstandings can be avoided and the relationship can be strengthened.
The reviews also provide a basis for individual development. By identifying strengths and development areas, the employee can receive support and resources to grow in their role. This leads to increased competence and motivation.
For the organisation, performance reviews provide valuable information for strategic planning. They can be used to identify skills gaps, plan for skills development, and ensure that the organisation has the right employees in the right place.
Regular reviews also help to create a fair and transparent workplace. By having clear criteria for assessment and an open process, the organisation can ensure that all employees are treated equally. In addition, the reviews can be used to link performance to reward, such as salary development and promotion.
Finally, by regularly evaluating and following up on employee performance, the organisation can identify problems early on. This could be a lack of motivation, conflicts in the team, or other challenges that affect performance. By addressing these problems at an early stage, the organisation can avoid bigger problems later on.
Conducting a performance review: step by step
A successful performance review requires careful planning and execution. Here are some important steps:
- Preparation: Both the manager and the employee should prepare for the review. Go through previous goals, achievements, and any feedback.
- Create a safe environment: Ensure that the review takes place in an undisturbed and confidential environment.
- Be clear about the purpose: Explain the purpose of the review and how it will be conducted.
- Give constructive feedback: Focus on both strengths and development areas. Be specific and give concrete examples.
- Listen actively: Listen to the employee’s perspective and be open to discussion.
- Set clear goals: Formulate concrete, measurable, and realistic goals for the future.
- Document: Document the review and the agreed-upon goals.
- Follow up: Follow up on the goals regularly and provide continuous feedback.
By investing in effective performance reviews, the organisation can create a more engaged, motivated, and productive workforce. It is an investment in both the employees’ and the organisation’s future. Brilliant is here to support you on the way – from planning and conducting the reviews to using the results to drive positive change.