How To Conduct Employee Performance Reviews

Employee reviews are a communication tool that allows your team to address and articulate an employee’s performance. Reviews can enhance performance and make an employee feel appreciated when appropriately executed. 

Constructive feedback should be delivered to an employee by their supervisor, especially when there are areas for improvement. Feedback can be offered through both formal annual reviews and through more informal reviews throughout the year.  

Formal and informal reviews should be documented to follow legal requirements and best practices. Additionally, they should be viewed as ways to develop, not punish your employees. Reviews can help with employee development and planning for the year ahead, giving employees the sense that they are valued and worth investing in. An employee who feels valued may think twice about leaving your company.

Ensure you understand how to conduct employee performance reviews to maximize their impact. When you are ready, 45 Solutions is here to help you put the right employee review system in place.  

Create an Effective Employee Performance Review System

Before we touch on how to conduct employee performance reviews, let's discuss the preparations you must make in advance. More specifically, you should establish a system for reviewing employees that benefits both sides.

Some employers ask employees to fill out self-evaluation forms before their reviews. Others use sophisticated software to compile employee performance metrics and analytical data.

No matter which direction you decide, prioritize developing a well-thought-out employee performance review system. This should allow you to show your employees that you've taken time to consider their contributions to your company before sitting down with them.

Deliver Constructive Feedback and Actionable Insights

Once you've developed an employee performance review system, implement it by sitting with employees to go over their individual reviews. Hand out copies of their reviews and review each included section.

Set the right tone by pointing out the positives first. Then, segue into offering constructive criticism.

Gently tell your employees what you would like to see them do better, and finish up by offering actionable insights. This approach will give your employees a roadmap to the next level of their careers.

Be Up Front, Honest, and Direct About Serious Problems

Ideally, you won't have to tell your employees too much bad news during their performance reviews. However, at times, you may need to address serious problems with an employee who is not living up to your company's lofty standards.

Be as upfront, honest, and direct as possible with them to emphasize the serious nature of your conversations. Allow two-way communication during this portion of the performance review to give employees opportunities to explain themselves.

Spend Time Talking to Employees About the Future

After learning how to conduct effective employee performance reviews, you'll spend a lot of time reviewing the past with those who work for your company. Don't let this stop you from focusing on the future at times, too.

Emphasize the importance of goal setting to your employees. Ask where they're interested in taking their careers, and offer insight about how your company can help them reach new heights.

Studies have shown employees enjoy coming to work more each day when they feel employers are invested in their futures.

Start Scheduling Routine Employee Performance Reviews

Figuring out how to conduct employee performance reviews successfully might take time. However, once you've done it a few times, you will start to get the hang of it.

If you're still struggling at that point, 45 Solutions is here to help with all your pressing HR needs. Call us at (215) 828-1404 to discuss them.

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Handling Employee Grievances