by Delivers greater employee autonomy
Once your employees are aware of the wider business’ objectives and their contribution to those; they are relatively free to make their own choices about how they go about their responsibilities. As a result, employees are happier, more committed, more productive and more loyal than those whose every action is dictated.
Line managers will have the reassurance of regular feedback sessions and discussion to review an employee’s progress against their agreed objectives. This fosters a culture of trust and initiative amongst your employees. A culture where ideas and creativity flow freely. Such a culture will only stand to benefit your business in the long-term.
Supports workforce planning
Frequent reviews with employees as part of a wider performance management strategy can also help with workforce planning. Discussing current and future workloads with employees can help to identify any requirements for future staff.
Boosts morale
Everyone likes being told they’re doing a good job. Performance reviews provide the perfect setting to formalise and document praise. But reviews shouldn’t just be about setting objectives for the coming quarter. It should also provide an environment for a line manager to recognise individuals on their team.
Happy employees are productive employees. A staggering 69% of employees say they would work harder if they felt their efforts were being recognised. No longer is a pay check enough recognition but regular feedback and reviews are key to maintaining employee morale.
Highlights training needs
Introducing more frequent reviews, whether formal or informal, can help to better understand the skillset of employees. Providing an open forum for employees to share and discuss their roles regularly can help to identify training needs before they have an impact on productivity.
Helps with identifying the right employees for promotion
Regular reviews are a great way to better understand the performance of your employees and their suitability for promotion.
All employees will be going through the same performance review process. As such managers can better evaluate them for promotion, salary increases or transfer in the same, consistent manner. Not only will this help to ensure the right employee is chosen for promotion; but will allow for more transparency and fairness in your selection process.
Increases employee retention
Companies who implement regular employee feedback have turnover rates that are 14.9% lower than for employees who receive no feedback. High staff turnover could have a major impact on your company. Not to mention the impact on staff morale and simply getting things done.
The nature of performance management ensures that the expectations of your employees and their objectives are clear and regularly reviewed. What’s more, the introduction of regular feedback sessions and reviews allows an employee to raise and resolve any issues.
Effective Form Structure
A good performance management form should have at least four sections to provide adequate structure and guidance:
- A section for listing business goals for the appraisal period. This is what the employee will ideally accomplish.
- A section devoted to behavior rating factors, standards, or competencies. This is how the employee will go about achieving goals.
- A development planning section specifying behavior improvement goals and development actions.
- An administrative section requiring some sign-offs, showing that the employee received the appraisal and the boss acknowledged it.
Provide Clear Rating Scales
Use a simple three-part response scale for rating quantifiable goals: Did not meet goal, Meet goal, Exceeded goal. Motivate high achievers with a fourth response, known as a “stretch goal.” The stretch goal rating accommodates exceptional levels of quality, quantity, cost, or timelines, and is stated as Met or exceeded stretch level of performance.
Prepare Clear Goals
Well-written goals enhance the impact of performance appraisal. Increase clarity and reliability by following this simple formula for writing goals: Action + Object + Measurement Method. Use as many measurement methods (quality, quantity, cost, and timelines) as possible. For example: Increase (Action) production (Object of the Action) this year (Time Line) by 10% over last year (Quantity) while keeping reject rate to 1:1000 (Quality) and incurring no overtime (Cost).
Gain Commitment, Using Self-Discovery Questions
Review the process in-depth, citing feature, function (how it works), and benefits (what’s in it for people to participate). Conclude these briefings with a round of self-discovery questions. “What do you see as the positives of this process? How might you benefit? What’s the downside of not doing performance reviews?”
Appraiser Skills
A good manager helps employees understand:
- What’s expected and how their performance will be appraised
- How they are performing
- How they can improve
