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So as an employee – have a think and ask what did you dislike about your last performance review cycle? Was it that it didn’t happen? It took much time? It was too vague and to general? Nothing happened when it was over?
Then ask what did you like about the review cycle? The constructive feedback? Anything in particular?
Did you think the process was fair? Was it not one sided?
What was one think you would have changed to make it better? Do performance reviews more than once a year? Get input from employees first? Having an open and honest dialogue with clear actionable feedback?
So following on the same note, I’d like to just do a quick poll on how would you rate your performance reviews today, we will be sharing some performance reviews and we want you to let us know if you think this is a good, bad ugly review.
So here is the first review we can take a look at, which we have tagged as a bad review. Backing up reviews with hard data such as numbers is a good thing; however the goal could be more clear on timings … also, you’ll notice that both the manager and the employee have given different numbers but no explanation as to why. So this is actually the bad review.
With the second one here, the manager didn’t use what I’d call good language – the goal is largely useless given that there’s no time frame; there is too much discrepancy between scores; the managers maths and expectations are wrong, the employees comments are not factual and can’t be verified. Therefore this is definitely the ugly review.
With sample number three, there are clear expectations in terms of a target with a time frame and a reason; it is factual, concrete and clear, it details in understandable figures, the difference in ratings are clearly established, both the manager and employee used facts on why the rating was given – this is a good review.
So which of these mistakes do you see most often on appraisals?
Unclear expectations? Non measurable goals? Or that no specific deadlines are set? Or all of the above?
But what can we do to make sure employees really value the performance review cycle?
There has to be a common purpose – that the employees and the organisation goals are interlinked, and really be able to answer where we are heading to help towards the company’s overall goal in that everyone is working together towards the same common purpose.
Set clear expectations – employees should fully understand what their individual role is but also what their role is within the organisation and what they are contributing toward the common purpose. It’s important to make sure employees get ongoing feedback and that they have the support to achieve their goals on target.
Capability – Make sure employees have the right skills in place that they need to achieve a particular goal – make sure that we are evaluating and reviewing and seeing if they are achieving the goals we put in place.
Commitment – make sure that you keep to promises that if the employee does achieve their goal, they get the correct reward. But also be steadfast in applying the consequences if they are under par in the performance review. Once someone begins to grow they need to make sure that the employee is continuously developed and we decide on the common goals for the next performance cycle.
This next slide is outlining some of the conditions that need to be in place to insure performance review success.
In terms of agreement – we have to agree on individual’s role and goals; and in turn the employer needs to know that the employee is onboard with the organisation and the employee can really see how they are going to contribute.
Opportunity - implement smart goals – there needs to be a chance to succeed with a particular goal – if it’s not attainable there is no point having it.
Feedback – Not having numbers in the goal makes it hard to tell if the feedback is accurate, it’s important to have ongoing feedback rather than just once in the year. It is also important to have regular manager meetings.
Fairness – the process and outcomes should be noticed as fair; typically, an employee will know who works the hardest in their employee group. If they feel like they’re going above and beyond compared to another employee and not getting noticed, yet the other employee gets rewarded ,they won’t see this as fair.
Rewards – it’s important to always make sure everyone knows the rewards and consequences process.
In terms of performance cycle concepts…
Planning is not just about setting goals and forgetting about them but making sure the employee understands how the goals will be measured for success and how they will contribute to the organizations goals and overall progression.
Performance – Interactive feedback needs to be part of the whole process and not one sided – it will help to keep employees on track and issues can be addressed before they come unmanageable.
Assessment – employees should be given the opportunity to asses themselves, so it can be identified if the manager and employee have the same image of the employees performance and are on the same page.
Review – In discussing the review, consider future goals, mutually agreed development plans and set the ball running for the next cycle.
The more understanding the employee has of the whole cycle the more likely they are to succeed and find the process beneficial
With what we do at HRsmart, we like to help automate all of this paper.
With the elimination of paper – Employees expect to have things available to them 24/7 and to view their own performance reviews when ever they want.
Improve compliance – HR can monitor the whole process and insure things are consistent and see everything documented. This is an easy way to track business goals in one place.
Increase visibility – from here we can see performance objectives – recorded feedback – accomplishments and roadblocks.
It increases consistency – there is ongoing tracking and evaluation, uses the same forms, the same evaluation methods and any changes can be easily communicated.
Improved reporting – HR no longer has to do research to see where people are in the process, the system can automatically do this and realtime
With SMART goals, when done correctly we can help motivate employees and align business processes, see how goals contribute to overall company success, how they can be measured – remember, goals without objectives are meaningless, with no objective progress is impossible to measure, it’s not just an annual exercise – these are critical to company success.
Keep it simple – smart goals – Employee can see clearly what they need to do , how long they have to get there , that employees understand how they fit in with the organization as a whole
So the performance review process should not just end at the score – if it did, there would be little or no point in doing them.
Compensation – score linked – bonuses – salary increases
Succession plans – can see top performers , successors are in place for top jobs within the organisation.
As a follow up – do employees need extra help on certain skills or competencies? Does this entail extra training ?
People can delete things, forget to do actions – Do use an automated solution to help increase consistency, communication and engaged employees.
This is always ill-advised – any constructive criticism ought to be kept private.
Ongoing process – maintain engagement – keep motivation
Got the data so use it.
How many goals would you recommend as a maximum – Around 5 competencies and 5 goals
Do most people tie performance with salary increases – Mostly a factor with many company's
How can you develop goals for employees who’s jobs don't change from year to year - look at organisations overall goals and how the employees can be linked.