3 Steps To Conducting Your Performance Reviews (Part 2 of 2)

Last week, we kicked off a discussion about conducting employee performance reviews by talking about the first step managers should take: Issuing employee self-evaluation forms. We determined that the self-evaluations influence how well the actual reviews go, and that self-evaluations help make the review process more of a give-and-take experience.

Now we will wrap things up with the last two steps, which focus more on the actual employee performance review itself. Specifically, how you can make the review process less arduous by taking the time to prepare accordingly and how you need to implement an effective rating system that is easy to understand but still fair.

So, to help get the most out of your employee performance reviews, check out the final two steps below.

3 Steps To Conducting An Effective Employee Performance Review (Steps 2 & 3):

Step 2: Prepare For The Review.

One of the biggest mistakes managers make is rushing through employee reviews to get them over and done with. This, of course, benefits no one. It does not benefit your employees, and it certainly does not benefit your business. If you want to make the review process move quickly and easily, take the time to prepare beforehand. Not only will this help expedite the actual review process, it will also make it less laborious.

To prepare for an employee performance review:

• Review the employee's job description.
• Write an agenda for the meeting.
• Think about what you want employees to take from the review.
• Schedule reviews in advance; never spring them on an employee without notice.
• Review the performance measures you will use for assessment.

Step 3: Implement A Fair And Consistent Rating System.

Quantifying performance review data can be a difficult process. Arbitrary numbers and grades do not tell you a whole lot-what a "7" means to one person might be entirely different to someone else. The best approach to a rating system we have seen is the Unsatisfactory to Exceptional scale:

• Unsatisfactory: The employee's work is well below the minimum level of performance. The employee must make significant improvements to their work.
• Below Average: The employee's work meets some of the minimum levels of performance, but not all. As a result, the employee must immediately improve in some aspect of their work.
• Satisfactory: The employee's work meets all minimum levels of performance and meets all minimum levels of performance, even excelling in some areas.
• Above Average: The employee's work is above minimum levels of performance. The employee shows initiative and investment in the business' success.
• Exceptional: The employee's work exhibits superior levels of performance and their work has had a direct impact on the overall success of the company.

Furthermore, be sure to provide employees with a ratings key complete with short, 1-2 sentence descriptions of what each rating means, similar to our example above. This helps ensure everyone is on the same page as far as what a rating means exactly. The trick is to strike a balance between being too specific and being too vague.