Second, you need to decide whether to use a performance review format from an off-the-shelf software program, from a Web-based application provider, or a customized format solely for your organization. This decision may depend on the size of your business and your resources. Software packages and Web-hosted applications offer templates for various employee reviews and can help step you through the process. But if you have an office with only a handful of employees, you may just want to find a sample template and customize it for your business.
It's important to establish and communicate to both managers and employees the performance rating criteria and expectations at the outset of the performance year -- the rules of engagement, so to speak. "That's the most important thing you can do at the beginning of the performance cycle so that you are able to objectively measure an employee's performance," says Paul Rowson, managing director at World at Work, a global human resources association that focuses on compensation, benefits, work-life, and integrated total rewards. "You can't give people moving targets to aim for. You can't move the cheese."
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Instituting an Employee Review Process: How to Set Employee Objectives
Rowson recommends that you develop employee goals and objectives at the beginning of the performance cycle by using the SMART formula:
- Specific. Spell out specifically what you are expecting from the employee and what the employee is promising to do, such as, "I will improve customer response rates in the call center by 15 percent," Rowson says.
- Measurable. Talk about what metrics to use in establishing whether you have accomplished this goal. In the case of the call center, you could use call volume statistics every month compared to the previous year.
- Aligned. Make sure that these goals are aligned with the company's goals. "You want to make sure everyone in the organization is on the same flight plan and that they are aligned with corporate goals," Rowson says.
- Realistic. "I've seen employees that actually say their goal is to climb Mt. Everest, so to speak, but they don't have the equipment, don't have the budget," Rowson says. It's important that the goals represent something that realistically can be accomplished.
- Time bound. Set a time frame in which the employee is committed to reaching this goal.
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Instituting an Employee Review Process: How to Conduct Employee Reviews
Instead of only communicating with your employees once a year during an annual review, you should provide employees with regular feedback throughout the performance year so that they know where they stand. "There should be no surprises at the end of the year," Rowson says.
Reviews are commonly conducted approximately 60-90 days after hire, and at regular intervals thereafter. Companies normally schedule reviews around an employee's anniversary date, or conduct reviews for all employees during a designated time of the year. They can also be held more frequently, such as once a month, if it helps the business better achieve goals. Reviews typically summarize performance of tasks and duties and include areas of improvement or strength. Sometimes they will encompass goals for a future period.
Here are some tips from Helmlinger on making the review process a success.
1. Be prepared. Pull your notes and thoughts together as you review the actual performance review form. Set aside enough quiet time to reflect on each area that will be reviewed. "Take in to account the entire timeframe since the last review; never use just recent events," Helmlinger says. "Avoid including data points that catch an employee off-guard, especially dated instances." Preparation also means you will decide if you will have employees involved in drafting their own review or if you'll write the review without employee involvement. This is a critical decision since the path you take may set the tone on how you conduct the actual meeting. Employee buy-in is critical; choose your path carefully.
2. Conduct a performance review meeting. Once you have prepared for your meeting, you must set the tone for the meeting itself. Conducting an effective review with an employee requires you to do the following:
- Establish rapport. Most employees are going to be nervous and anxious. Remove both visible and mental barriers. Sit next to each other instead of across the desk from them. Let them know this is a mutual conversation, not an interrogation. Even consider meeting them over lunch or breakfast.
- Concentrate on the meeting and employee. Avoid interruptions. Your focus needs to be on them. Interruptions will be interpreted as a lack of interest on your part and will weaken your process.
- Take notes. Taking notes is another indication of your interest in the process. Performance reviews should be a two-way conversation. Notes will help you remember what changes need to be made to the final performance review form.
- Observe responses as well as behaviors. Both you and the employee may be nervous and anxious. Even though you may know the employee well, you still want to observe their responses and behaviors during the meeting. If their responses and body language shift during your meeting, go back and re-establish rapport. Body language can clearly demonstrate their level of buy-in.
- Allow time to ask questions. While you could hand them the review, have them read it, and sign it, it's better if you can allow time for them to ask questions. "Buy-in takes place when the environment is open and conversational," Helmlinger says. "Let them know that you welcome questions and want to ensure they understand what is being shared and why."
3. Follow up. Not all performance reviews are designed for a single session. You may have to re-draft the document because of the changes you've negotiated with the employee. Perhaps you have asked the employee to provide you with their evaluation without you sharing yours with them. Whatever the reason, a follow up is your ally for employee buy-in. Following up might also encompass future meetings with the employee to discuss any progress reports that may be required as part of your process. Following up demonstrates that you are committed to the employee's contributions and development.
