Performance Management and the Review Process

Written by: Mercedes Contreras

It Doesn't Have to Be Painful

Let’s begin with a stroll down Memory Lane… think back through your career as an employee and leader of others, and your memories of the annual performance review process may not flood you with warm and fuzzy feelings. This, unfortunately, has been the experience for so many, consequently resulting in decades of employees loathing the entire performance management process but even more so, the annual review conversation. PPR is here to let you know that it does not have to be that way! We can aid in transforming your organization’s Performance Management and Annual Review Process with some helpful suggestions.

According to a Gallup survey conducted last year, 95 percent of managers reported being dissatisfied with their organization’s performance management and review process. The performance management system as a function of Human Resources and its overarching impact on employers has not evolved over the last generations of Millennials and Generation Z at the same pace as the purpose and desired outcomes for which it is intended. To shift this paradigm, leaders can implement the suggestions below, and begin realizing the powerful impact that effective performance management and review processes can provide.

Suggestions:

1.  1.  Ensure employees receive recognition and acknowledgement of their contributions on the spot. Encourage and train managers to recognize employees with their preferred form of recognition as great performance occurs.  

2.  Provide valuable feedback throughout the year with frequent check-ins. Set performance goals at the beginning of the year so employees understand expectations. Schedule individual conversations such as weekly or bi-weekly one-on-ones and quarterly check-ins to dig deeper into employee performance and establish a foundation of trust. As business needs change, update performance goals accordingly.

3.  Remember! Feedback is a two-way conversation. Two-way communication about expectations helps employees understand why their job matters and how they fit into the organization’s strategy. It allows leaders to focus on the employee experience, their motivation, valuable contributions, and desired career path, rather than leaning too much on a rating or a number. Additionally, soliciting feedback from colleagues and other managers that employees collaborate with facilitates well-rounded feedback conversations.

4. Address subpar performance immediately. Managing performance through frequent check-ins is especially important when the need arises for leaders to address an employee's subpar performance. This ensures employees are not caught by surprise later. It is also imperative to train managers to give feedback in a calm and supportive manner, even during high emotion topics such as corrective action.

5. Be aware of “recency bias” and make an effort not to ignore employees you don't see regularly. Our work arrangements are incredibly varied. As more organizations embrace remote work, it is important to remember that just because you do not see someone every day does not mean they are not productive and engaged. At the same time, do not allow yourself to evaluate an employee based upon a recent mistake and overlook the accomplishments their efforts have achieved throughout the year (known as “recency bias.”)

6.  Finally, Keep it Simple. With the transparency that comes with frequent check-ins and two-way feedback, there is no need to maintain a lengthy review form with numerous ratings and open-ended questions. Focus on meaningful communication and stay away from the topic of compensation during review discussions. The employee may become focused on a raise or bonus, taking away from the true intent of performance management and reviews.

These suggestions may be integrated in stages. When leaders embody and lead through performance management with our recommendations, the changes become engrained in the organization’s culture. As a result, employees feel their contributions and opinions matter, employee engagement and morale are higher, and bottom performers are held accountable, leading to a paradigm shift in the annual review process making it less taxing and stressful for all involved. Ultimately, this can result in higher retention levels and lower turnover because employees know what to expect, thus enhancing the organizational experience for all. 

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