Performance reviews can be anxiety-inducing for employees – but they don’t have to be. When approached right, they can produce positive outcomes for both the business and your team. In this blog, we look at best practice tips for better employee performance reviews.
Why conduct performance reviews?
Performance reviews allow employers to formally catch up with their employees (generally quarterly, bi-annually or annually) about how they are progressing in their roles, while also giving employees a channel to chat about their expectations and goals.
Performance reviews can help business owners and managers to:
- Increase productivity.
- Improve communication and performance.
- Show employees they are valued.
- Identify areas of development.
- Engage their employees.
- Grow their business.
10 best practice tips for performance reviews
- Create processes.
Putting processes in place can make performance reviews easier and more effective – particularly if you’re holding them for the first time. The Government’s Fair Work Ombudsman offers a free online learning course on Managing Performance designed for small business owners.
- Be prepared.
Consider your business strategy for the next year and the role each of your employees plays in achieving it. This may include notes for each employee on how they are performing in their current roles, such as their key achievements and areas of improvement or development.
- Schedule reviews in advance.
Schedule reviews well in advance. That way, your employees can prepare any requests or feedback they might like to discuss in the review too.
- Get the right people involved.
The direct manager of an employee is often the best person to conduct the review, over, say, the head of the department, as they know them and how they work.
- Don’t rush reviews.
Allocate a generous amount of time for each performance review so that both you and your employees don’t feel rushed and cover off everything required.
- Make it a two-way discussion.
In conducting the review, keep the tone positive. Use examples to illustrate your points. Ask questions. Listen. Take notes. Request feedback. Conclude by confirming the key objectives of the review, and how you and your employee can start implementing them.
- Use digital tools.
Use digital tools during and after the review to encourage accountability. For example, managers can use Deputy’s Tasking feature to allocate jobs to specific employees and Deputy’s Newsfeed feature to streamline and track work-related communications between individuals and teams.
- Communication is key.
Encourage ongoing open communication with your team so they know they can come to you with an issue or request at any time. This will create a more connected culture in your workplace and boost team unity.
- Follow up.
Be proactive in delivering on what you said you would in the review, such as a reward (i.e. a raise or promotion) or a remedy (i.e. a supporting team member or further training). Work with your employees to also deliver on their goals.
Talk to your team about how you can improve performance reviews in future, and use their feedback to revise it as best you can.
Find out how Deputy can help your team work more efficiently and help to grow your business. Contact our friendly team today on 1300 DEPUTY to learn more.
The information contained in this article is general in nature and you should consider whether the information is appropriate to your needs. Legal and other matters referred to in this article are of a general nature only and are based on Deputy's interpretation of laws existing at the time and should not be relied on in place of professional advice. Deputy is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by us concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article. Deputy disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on this information.