We commonly get asked about the best way to conduct performance reviews. This all depends on how the business operates and what their needs are.

Let’s break this down and consider the following factors:

1. Are You Conducting Performance Reviews?

Remember, if your employment agreements state that you will hold performance reviews, then you are obligated to carry them out. It is a good idea to review your employment agreements and policies to identify these obligations.

2. Measuring Employee Performance

Think about the individual or team outcomes that you are wanting to drive and how they will be measured. What business outcomes are you wanting to drive? These should go hand in hand.

3. The Frequency of Performance Reviews

The frequency of performance reviews enables you to see how far away the individual is from achieving their goals. It is important to set out exactly when and how often these reviews occur during the year. Consider whether you’d have them biannually or annually. Perhaps it’s easier to go off employee start dates or follow the financial year.

4. Management and Consistency

Management and consistency are the core of maintaining employee productivity. It is crucial to have a key person who will be held accountable for this process. Based on how the reviews are conducted will determine which system to use. There are large businesses that prefer using a paper-based system because it suits their needs.

5. What are The Outcomes Being Achieved?

Decide on how you will measure these outcomes. i.e. What standards will you set for your employees? Additionally, does everyone understand your vision? What behaviours do you want to drive? Different KPIs drive different behaviours and achieve different results.

6. Recognising & Acknowledging Individual Milestones

To achieve the outcomes you want, you need to reward good behaviours and instil the values which align with the company. People like to be acknowledged and recognised for their efforts, so why not celebrate it? Find out what motivates employees and what benefits they desire. Sometimes employees may use this opportunity to ask for pay rises or bonuses.

Reflect on these points before you look into conducting performance reviews. It can aid you in making decisions easier and give you some clarity on the direction to take. Consider the size of your business, your culture around performance reviews and the ownership of them. If you don’t have any HR set up in your organisation to go through these points, get in touch!

We can set up this system, create templates and processes to follow and provide training in the review process. Your business will have all the steps in place to conduct performance reviews consistently and competently.