How To Organise a Successful Annual Employee Review as a Leader
Here are valuable tips for organising a successful annual review and the things leaders must understand about it.
Employees crave feedback, but feedback loops often go wrong. Today we go in-depth on conducting an annual employee review.
Did you know that performance reviews themselves are in a sticky-wicket position as per the indicators from some major companies? Studies show that most leaders/managers are dissatisfied with how their organisations handle these reviews.
But before you throw these reviews to the bin, in our recent article “How To Give Better Feedback At Work”, we tackled the importance of giving and receiving feedback. This is essential to the growth of any company because without it we will not realise every opportunity for improvement.
Do you need help around optimising skill levels and maximising staff potential? We are here to help.
Annual employee reviews are a key part of any successful manager's toolkit. They provide an opportunity to reflect on past performance, set goals for the future and support employees on their journey.. But if they're done wrong, they can be a source of stress for employees and managers alike. So how can you make sure your annual reviews are a success?
Here are our top tips to arrange a successful annual employee review.
Keep in mind that an annual review should be the pinnacle of a years’ worth of discussion. As the manager, it is important that you are conducting regular check-ins with your employees throughout the year. This will ensure that you are on the same page and that they are aware of your expectations. By conducting regular check-Ins, you will be able to build a strong relationship with your employees and create a team that is focused on meeting goals. So anything you’ll say in the annual review should not surprise them. Additionally, use this time to review their progress and set goals for the upcoming year.
Always start by reviewing the goals you established and agreed upon on the last annual review. A proper and meaningful annual performance evaluation should start by reviewing the goals you and your employee discussed and agreed upon during their last annual review. We have found that it helps create alignment regarding the company’s goals and brings the conversation full circle. By reviewing these goals, you can provide feedback on how your employee has progressed and help them to set new goals for the coming year. This process helps to ensure that everyone is on the same page and working towards common objectives. It also provides an opportunity for employees to reflect on their own performance and identify areas where they would like to improve. Ultimately, a well-conducted annual performance review can be a valuable tool for promoting higher levels of productivity and engagement within your team.
As much as possible, conduct the reviews at the same format and same time every year. Let’s face it, the process of selecting criteria and conducting reviews can be time-consuming and frustrating. Sometimes, it may seem like the only way to get accurate results is to constantly change the criteria, making it difficult to compare year-over-year performance. That being said, you might want to consider informal reviews, or doing four quick short quarterly catch-ups so there are no surprises. Nevertheless, research shows that consistency is key to conducting effective annual reviews. When managers use the same form and process year after year, they are more likely to get accurate results that can be used to identify areas of improvement. In addition, employees are more likely to trust the process when it is fair and predictable.
Don’t confront, converse. Oftentimes employees dread this day, it is as if the time in the company is dictated by the review itself. You will use this meeting to address shortcomings, it is also vital to give thanks for wins and efforts made. Use this time to give constructive criticisms, but make sure to highlight successes no matter how big or small. It will also help to mention information on any new certifications received by your employee, or if he/she had any participation in any conferences, courses, seminars or contributions in special projects should all be positively acknowledged and documented in the annual review.
As much as possible, conduct annual reviews in person. In-person communication is key to building trust and rapport with staff members. It can be difficult to read body language over email or video conferencing, which can lead to miscommunication. In-person reviews also ensure that the topic of conversation is getting the attention it deserves. But with the COVID situation, doing things virtually is a more viable option. If you must conduct an annual review virtually, we recommend insisting upon specific location requirements, for instance, a quiet spot where their attention is undivided, a place where they turn their video camera on, and where they can focus on the discussion. Remember, your non-verbal queues. As mentioned in our last article (10 ways to improve feedback delivery, tip #10) – pay close attention to your non-verbals and facial expressions when you deliver feedback. How you say things is just as important as what you’re saying. The delivery of feedback can often be more important than the message itself.
Look at the bigger picture. Technical skills are only part of the big picture. When giving annual reviews, make sure to include soft skills in your talking points.
Prepare yourself for challenges along the way. Nobody’s perfect. If a team member's performance is truly a problem, it may be time to put him/her on a performance improvement plan. This will involve identifying shortcomings and growth steps together, and giving the employee a set period of time (usually three or six months) to show improvement. If the employee's performance is still below par after this timeframe, then termination may be considered as an option. However, it is important to note that pay cuts and demotions may actually make the problem worse, so these should be avoided if possible. Ultimately, the goal is to help the employee improve his/her performance so that he/she can be a productive member of the team. With this in mind, the performance improvement plan should be tailored specifically to the individual and their unique needs.
Leaders need feedback as well. Too often, performance reviews run one direction: from the top down. Unfortunately, that leaves out the person who needs feedback the most: the leader. Employees see how the company’s policies play out in practice, meaning they have insights that those in the ivory tower need for better decision-making. That’s why it’s essential for leaders to solicit feedback from their employees on a regular basis. Not only will this help to improve decision-making, but it will also foster a culture of transparency and open communication. When leaders are open to feedback, it sends a signal to employees that their opinions are valued and that their input can make a real difference. As a result, everyone benefits from a more effective and harmonious workplace.
At the end of the day, annual reviews are not always as right as rain. This can be a nerve-wracking and brutal experience for some, but it doesn't have to be. If you take the time to prepare your employees beforehand, they will be better equipped to handle the review and use it as an opportunity to improve their performance.
It is important for both the leader and the team. By taking the time to properly plan and understand what is needed from each side, the review can be a valuable tool for growth. If you would like help organising your next annual review, arrange a call with us today. We would be happy to assist you in making this process as smooth and productive as possible. Let’s discuss what metrics you will be using? How often will you be checking in? What goals do you want to achieve?
