Ready to Ramp Up Your Performance Reviews? Answer These 3 Key Questions First

An overwhelming majority of new clients tell us that not only are their performance reviews not a source of inspiration, it’s unclear whether they even lead to better performance or improved business outcomes.

With March now on our doorstep, we know that many organizations will have conveniently structured their annual performance reviews to coincide with year-end.

For our part, however, we’ve been working for the past number of years to move managers and organizations away from annual reviews - and toward a process that’s driven by:

·       Regular 1:1 meetings

·       Gathering and sharing of feedback throughout the year, and

·       The use of current technology to make the review process easier and more effective

If it feels like your performance reviews just aren’t getting the job done, here are 3 key questions you should be asking yourself.

1. Why are we conducting performance reviews in the first place?

We find that many organizations tend to use their performance reviews as a means to communicate generalized annual pay increases - increases which, ironically enough, are rarely linked to performance or outcomes in any tangible way!

While performance reviews can (and should) be fueled by good intentions, their execution often leaves people managers feeling unenthusiastic, to say the least. Many evaluation processes are so uninspiring, in fact, that some organizations have gone so far as to eradicate them completely.

So what’s the problem, exactly?

One of the biggest complaints we hear is that, while managers are often required to complete a dozen or so, 360-degree feedback forms, they really only remember the most recent experience they’ve had with any one employee.

We know through Gallup’s engagement work that employees want regular opportunities to learn and grow.

Not only does Gallup’s research suggest that millennials, especially (who form the majority of the workforce) want routine feedback, those who meet with their manager 1:1 on a regular basis are more than twice as likely as their generational peers to be engaged at work. Unfortunately, only 19% of millennial employees actually receive regular feedback – and only 17% say that feedback is meaningful.

If it’s time to re-think your performance review process, we strongly suggest starting with your people managers.

Whenever we begin work with a new client, for example, we gather their people managers together and ask:

·       Why do you conduct performance reviews?

·       What do you like and not like about your current review process?

·       What would you ideally like to get from your evaluations?

The first step in ramping up your performance reviews is to get clear on why you have them in the first place. And that means a) determining whether your reviews are helping you meet established business goals, and b) asking employees and managers directly if your process is meeting their individual needs.

2. What is the best way to collect the performance data we need?

In our experience, the most effective organizations have systems in place that facilitate ongoing performance conversations between managers and employees throughout the year. These systems are firmly rooted in both quantitative and qualitative data that supports organizational goals.

To answer the bigger question of how to collect regular performance data, start by asking yourself these two smaller questions:

·       What quantitative values am I going to use to determine if an individual is performing successfully? (interestingly, organizations with poor planning measures at the top usually can’t answer this question)

·       What qualitative data will I use to ascertain if this person’s performance is up to snuff?

Great qualitative data is usually linked to organizational values. Do you have a modern system in place for linking people’s decision-making to the values your organization considers most important?

3. How can we take advantage of technology to support our performance review goals?

We see an awful lot of organizations get wrapped up in (and distracted by) new HR technology they think will solve all of their problems.

There’s no question that HR tech is a great tool for streamlining the giving, receiving, and documenting of performance feedback and goals. But we’d argue that if your people aren’t doing that now, implementing a new software platform isn’t necessarily going to change their behaviour.

Instead, we recommend that you start by:

·       Sitting down and establishing the actions you’d like managers and employees to take over the course of the year

·       Creating a system around those activities

·       Running your system for several months to make sure it works before you invest in software for the entire organization

If you already work in an organization that has review-friendly technology in place, ask someone to give you a demo. You might just discover ways it can be reconfigured to fit the ramped-up process you’d like to be employing with your team.

Remember, when done right, regular staff reviews don’t just have the potential to improve overall workplace performance, they’re a great opportunity to increase employee engagement across your organization.