Performance reviews are more than just a task on a manager's to-do list; they are opportunities to inspire and empower employees to achieve their full potential. In this guide, we'll explore the essential elements of conducting a performance review that motivates both managers and employees. From setting clear expectations to leveraging personalized feedback, each step is designed to create a collaborative and supportive environment for growth and development.
Performance reviews are a cornerstone in your performance management cycle. Done effectively, performance reviews help managers strengthen alignment and coach to better performance. They help employees understand expectations, communicate progress, and develop a path for growth.
Managers should have many types of performance conversations—outside of an employee performance review—with employees throughout the year. Ongoing feedback that helps employees adjust and grow in real-time. But the performance review is an opportunity to formally assess an employee's work over a given period, through a face-to-face conversation.
Most organizations conduct annual performance reviews, but these reviews can also be conducted quarterly or even monthly.
Performance reviews have gotten a bad reputation over the years. This stems from outdated practices and ineffective implementation of reviews.
Employees at all levels have described performance appraisals as bureaucratic and time-consuming. Reviews often feel like check-the-box formalities, lacking meaningful feedback and opportunities for growth. The annual cadence and focus on past performance, as well as the emphasis on performance ratings, doesn't help managers course correct or employees develop and grow. And the subjective nature of reviews often leads to biases and inconsistencies that leave employees feeling disengaged.
That's a lot for organizations to overcome in their performance review process. But effective performance reviews offer benefits for everyone.
For leaders, performance reviews provide invaluable insights that can lead to more informed decisions around promotions, training, and resource allocation—ultimately improving the overall success of the business.
For managers, reviews offer a platform for providing feedback, setting goals, and aligning team member objectives with organizational objectives. They’re an opportunity to recognize and reward top performers—and address any performance issues or concerns in a timely manner. Done thoughtfully, performance reviews help foster open communication between managers and employees. They help strengthen relationships and promote a culture of transparency and accountability.
For employees, performance reviews can be valuable opportunities for growth and development. They can get direct feedback on their work, gaining insight into where they excel and where they can improve. Reviews can empower employees to set goals, track progress, and take ownership of their development.
Quantum Workplace research shows only 68% of employees feel their performance is fairly evaluated. And only 60% say their managers provide performance feedback that helps them improve. There’s a big opportunity to improve performance reviews!
A well-executed performance review can inspire employees to reach new levels of performance. When employees have a clear understanding of expectations and can see a path to growth, they can engage more fully in their work. Managers can help strengthen alignment, boosting success of the employee and the organization at large.
To make your performance reviews more motivating for employees:
A performance review will only be as good as the thought that is put into it. Preparing for a performance review is essential for managers and employees alike.
Managers should spend time reflecting on and reviewing the employee's performance, gathering specific examples of successes and areas to improve. They should consider how to provide relevant feedback and coaching based on the employee's goals and responsibilities.
Employees should also take time to reflect on their performance during the review period. They should come prepared to discuss progress, obstacles, and opportunities with their managers. They should also consider their career aspirations and where they'd like to grow and improve.
When managers and employees both prepare for a performance review, the conversation can be much more productive and meaningful.
Providing constructive feedback is a crucial aspect of the performance review process. By offering feedback that is specific, actionable, and linked to performance expectations, managers can help employees understand how they can improve and excel in their roles. Here are some tips for drafting constructive feedback:
Check out our article on performance review example phrases, comments, and questions to help you draft constructive feedback and facilitate a more engaging review conversation!
You want to conduct a performance review in a way that is both effective and engaging. Effective in resonating with employees and boosting an employee's performance. Engaging in helping employees feel valued, heard, and motivated to grow and improve.
A performance review should not be a one-sided conversation. It should be a two-way dialogue between managers and employees that provides clarity and builds trust. Create an environment where both parties can share thoughts, feedback, and goals.
Managers should practice active listening. By actively listening to employees' perspectives, managers can gain a better understanding of their experiences, challenges, and aspirations. This helps build trust and engagement.
Two-way conversations also help align employee goals and expectations with the organization's most important goals. By understanding employee aspirations and providing guided coaching, managers can strengthen alignment and boost performance.
Vague or generic feedback can leave employees unsure of what they need to improve or how to excel in their roles. Detailed and specific feedback provides employees with clarity on what's going well and where they need to do better. It helps them understand specific behaviors and actions that impact their performance. And it makes it easier for employees to act on feedback and make meaningful changes.
It's most helpful when managers go beyond pointing out examples, offering guidance and coaching on how employees might improve. This helps employees feel like managers are a partner in their development.
Regular feedback is crucial for driving continuous improvement in employee performance. It involves providing ongoing feedback and guidance, rather than saving feedback for the annual performance review.
Ongoing feedback helps employees make timely improvements and adjustments to their performance. It provides them with immediate guidance on how to excel in their roles. It also helps managers identify performance issues early on, allowing for timely course correction. Managers can prevent small issues from escalating into more significant problems that can affect employee performance.
Honesty and transparency are table stakes in performance reviews. It's the only way to build trust and create an environment of open communication. If employees sense dishonesty or don't think the process is clear and fair, you'll start on a shaky foundation.
When employees believe their manager's feedback is genuine and unbiased, they're more likely to accept it and take steps to improve. Clear expectations paired with open and direct communication helps employees and managers collaborate better. They create better goals, come up with better ideas, and increase the likelihood of buy-in, change, and better performance.
Active listening is an essential skill for managers conducting performance reviews. It involves fully focusing on and understanding what the employee is saying, both verbally and nonverbally. Active listening allows managers to gain a deeper understanding of the employee's experiences, challenges, and aspirations. It helps managers see the situation from the employee's point of view.
Leading with empathy involves understanding and acknowledging the employee's emotions and experiences—and responding with compassion and support. When employees feel understood and valued, they are more likely to engage and perform at their best. Empathy creates a safe space for employees to share their thoughts, concerns, and challenges and fosters a culture of trust and collaboration.
Aligning feedback with role expectations and organizational goals is crucial for effective performance reviews. It ensures that feedback is relevant, meaningful, and aligned with what matters most to the organization.
When feedback is aligned with role expectations, employees have a clear understanding of what is expected of them. It helps them focus on the key areas that drive performance and contribute to organizational goals. It makes it easier to understand how to improve performance and where to prioritize efforts.
The context and structure of performance reviews can significantly impact their effectiveness.
A positive and supportive review context creates psychological safety, where employees feel comfortable expressing their thoughts and concerns. It encourages open and honest communication for a more meaningful conversation.
A well-structured review ensures fairness and objectivity in the evaluation process. It provides a consistent framework for assessing performance and reduces the risk of bias or favoritism. Clear structure and guidelines provide employees with a sense of direction and clarity. It helps them understand what is expected of them and how they can improve their performance.
A structured review also allows for a focused and efficient conversation. It helps both managers and employees stay on track, cover all relevant topics, and make the most of the review time. Consider using a performance review template to help with structure.
Checking biases is an essential skill for managers conducting performance reviews. Biases can affect the objectivity and fairness of the review process, leading to inaccurate assessments and hindered employee development. Checking biases helps ensure that performance appraisals are fair and objective. It allows managers to assess employee performance based on merit rather than personal preferences or prejudices.
Performance reviews can be turned into valuable opportunities for employee development. By reframing the review process as a chance for growth and improvement, managers can help employees see the value in receiving feedback and actively participating in their own development. In the following sections, we will explore various strategies for leveraging performance reviews for employee development.
Goal setting is a crucial aspect of employee development, and performance reviews provide an excellent opportunity for collaborative goal setting. By involving employees in the goal-setting process, managers can create a sense of ownership and commitment to achieving those goals.
Involving employees in goal setting increases their engagement and commitment to achieving those goals. It allows them to have a voice in their development and aligns their goals with organizational objectives. It creates a sense of purpose, ownership, and accountability—ultimately increasing the chances of goal achievement and success.
Incorporating employee self-assessment in the performance review process can provide valuable insights and enhance employee engagement. By allowing employees to reflect on their own performance and provide input, managers gain a more comprehensive understanding of their strengths, challenges, and goals.
Self-assessment allows employees to express their thoughts, concerns, and aspirations. It provides managers with a deeper understanding of the employee's perspective and experiences. By involving employees in the assessment process, they take ownership of their performance and become accountable for their development.
Performance review follow up is an important step in the performance review process. By agreeing on next steps and areas for growth, managers can nurture employee development long after the review is over.
Regular check-ins post-review can help in addressing any emerging issues promptly and keeping performance on track. This might look like a combination of quarterly performance check-ins, monthly progress and engagement discussions, and weekly 1-on-1s to tackle opportunities and obstacles in real-time.
Once the performance review is completed, it is crucial to follow up effectively to ensure the feedback provided during the review is acted upon. Following up entails setting clear expectations for improvement, discussing any additional support needed, and establishing a timeline for progress checks.
This phase is an excellent opportunity to reinforce positive behaviors or address any lingering concerns from the review. By maintaining open communication channels post-review, managers can support employees in reaching new heights and achieving their set goals. Regular follow-ups indicate a commitment to employee development and show that their growth is a priority for the organization.
In conclusion, mastering the art of conducting a performance review that motivates requires managers to adopt a collaborative, empathetic, and transparent approach. By providing constructive feedback, setting clear goals, and fostering open communication, managers can create one of the best ways to empower employees in the performance review process. This approach allows employees to reach new heights and contribute to the success of the organization.
Make your performance review process more effective, efficient, and engaging. Quantum Workplace's performance management platform helps your managers and teams prepare for, facilitate, and follow up for better reviews and better performance.
Published January 10, 2024 | Written By Kristin Ryba
