Performance Reviews: 4 Benefits to Your Company and Employees

In our overloaded, double-booked world, performance reviews often get push aside to put out fires or rush a deadline. However, these reviews aren’t just about the future of your staff; they could mean the future of your business.

In order to maximize the benefits of these reviews, managers and business owners must craft the right questions to assess strengths and weaknesses. By highlighting specific information, performance reviews can help you see the connection between employee success and company success.

Benefit #1 – Priorities

Before conducting a performance review, ask yourself: What do my employees need to focus on in order to make this company the most successful in the industry? Then, create broad categories to classify these needs. During your review, examine how each worker contributes to each category and then discuss how, together, you can make those contributions stronger.

Example categories include: teamwork, attitude, knowledge and skills, operation and maintenance of equipment, attendance and punctuality, adherence to policies and regulations, safety habits, essential functions.

Benefit #2 – Setting Expectations

Expectations for your employees should mirror the overall expectations you have for your business. By ranking your staff’s workplace performance on a simple numerical scale, both you and the employee can easily see which areas need the most improvement. Pick a scale that makes sense and is easy to follow. The appraisal, especially the areas with room for improvement, should be clear and concise. You want your employee, whether permanent or temporary, to leave the room with a solid understanding of their performance.

Numerical scale tip: For example, if using a 1-5 scale, earning a “5” could mean “Exceeds Expectations,” a 4 could mean “Meets Expectations,” a 3 could mean “Needs Improvement,” a 2 could mean “Below Expectations,” and a “1” could mean “Significantly Below Expectations.”

Benefit #3 – Create an Action Plan

Good performance reviews reenergize your employees, but great performance reviews reenergize the whole company. Create momentum by deciding on an action plan, and you’ll soon start to see a chain reaction. For example, if a struggling sales associate needs to be more engaged with clients, one of the goals of that action plan could be to explore different ways of connecting with current clients.

Benefit #4 – Open Communication

A performance review is more than just a to-do list; it’s an open line of communication between management and employees, both temporary and permanent. It’s an opportunity to assess your company’s overall challenges and inspire your staff to help tackle them. Be honest and open; listen as much as you talk. Most importantly, you need to:

  • Provide specific ways employees can improve.
  • Be upfront about areas of weakness. Praise strengths and talents.
  • Let them self-evaluate and tell you how they think they’re doing.
  • Find a balance between praise and critiques. Don’t overly sugarcoat and avoid being too harsh.

Performance reviews are one of the most valuable tools in a manager’s toolbox. Assessing your employees’ current productivity can help you track their progress and job growth, while also allowing you to plan your company’s future goals.

Want to bring in a fresh perspective to your team? The recruitment specialists at Malone Solutions can help you build a solid workforce that will improve the overall performance of your entire crew. Contact us today to learn more about our staffing solutions.

 

 

 

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