Do you have an effective system in place for performance reviews? 53% of employees say they don’t actively track their improved performance. However, companies who have implemented regular feedback for employees have seen turnovers rates that are 14.9% lower in comparison to those with employees who receive no feedback.
Developing an effective performance review process is essential to helping employees grow and prosper with your organization. The performance review process shouldn’t occur once a year, but rather, be an ongoing conversation between managers and employees. 69% of employees say they would work harder if they felt their efforts were recognized. In a survey conducted by PwC, 60% of respondents reported that they would prefer feedback on a daily or weekly basis, with this percentage increasing for employees under the age of 30.
So how do you create an effective and ongoing performance review process that continues throughout the year? Aside from finding a system that works for your organization to track progress, consider these four approaches to improve feedback for employees.
1. Strategize: Identify overall organizational objectives, goals and key performance indicators. The goals for each department should align with the company’s annual strategy.
2. Set Goals: Have each employee develop goals that align with their team’s goals on a monthly, quarterly and annual basis. SMART goals (Specific Measurable Achievable Relevant Time Limited) provide a good framework for them to do so. This will ensure short-time goals will contribute to the larger focus of the organization.
3. Create a Consistent Feedback Loop: Ensure managers and their direct reports have regularly scheduled time set up to review, and steps to accomplish, each goal. Annual management reviews shouldn’t be the only time managers and their teams touch base on performance. Depending on a team’s size managers should engage in weekly, bi-weekly or monthly one-on-ones with their direct reports. This will foster a culture that promotes two-way ongoing feedback to address general, and critical, objectives and concerns.
4. Tracking Tasks: As employees accomplish steps within their goals, have them track their accomplishments (either in a general HRIS system, performance management platform or even a shared google doc). During reviews this can serve as the basis for discussion with managers and employees to show successes and short-falls. Ensure managers understand how to provide constructive feedback in these sessions. This time can be used to discuss strengths, weaknesses, opportunities for improvement and how learning and development can help the employee thrive.
In addition to improving the overall productivity and engagement of employees (and their managers), conducting ongoing performance assessments can help guide promotions, salary bumps, bonuses and/or layoffs. Feedback is extremely valuable for companies – its guides individuals to excel and grow within an organization and increases retention rates.