Informal recognition and feedback is useful. But to maximize your employees' output, it's good business to create an official performance review system and then use it. To put together your performance review policy, give some serious thought to:
- What are the specific requirements of the various jobs in your business.
- How you are going to present evaluations to your employees.
- What you want to say to improve and motivate your workers.
Action Steps
The best contacts and resources to help you get it done
Determine the jobs and their duties
A performance policy should ideally facilitate and promote improvement of both your workers and your company's operational structure. If you have a company manual (or even just an org chart) you likely will have a foundation for the types of jobs your business has and what is expected.I recommend: Get started by reviewing other companies' performance policies. Check out these overviews from Child Care Ontario and the University of Michigan library system, as well as this nice table format review. Also take a look at the various types of job-performance appraisals. Performance Appraisal Forms offers a synopsis of the four most popular methods. And Michigan State University's sample performance review letters give you an idea of what you should be looking for in a worker, as well as what you don't want to see on the job.
Put it on paper
Once you decide upon your performance system, then it's time to actually do the employee evaluations. Much like doing your taxes, the paperwork is as big a hassle as the actual review. Don't reinvent the wheel. Use a template.I recommend: Success Factors, HRN Management Group and Performance Appraisal Forms each have standardized forms that also allow you to customize to suit your company and specific positions. Prices range from just under $40 to $795.
Find the right words
A form won't do you much good if you don't have the proper words to fill in the blanks. You want to be clear and precise, and set a tone that motivates and encourages as well as corrects any problems.I recommend: You can get the right phrases by downloading Market Communications' 1,000 Bullet Points for around $25 or buying the book "2,600 Phrases for Effective Performance Reviews" for $10.95.
Give employees a chance to be heard
Build into your review process at least two face-to-face meetings between the manager and employee, one before and one after the manager writes the official review.After all, a review is just a communication device, as much for the employee as the manager.Hear the employee's side of the story before the written review and check for understanding after presenting the review.I recommend: BusinessTown gives you a script for a productive performance-review meeting.
Tips & Tactics
Helpful advice for making the most of this Guide
- Run your review policy by your legal department to ensure that it meets labor law standards.
- Once your review policies are in place, follow them for every employee. Fair and equitable evaluations are crucial to ensure against charges of favoritism and potential wrongful termination lawsuits.
- Use the annual review not simply as judgment mechanism, but also as a way to improve both your workers' skills and how your company integrates those skills into the overall business operation.
- Remember that a performance review should be more than a dreaded annual task. A thoughtfully designed review can increase worker productivity, enhance company morale and increase your business profits.
the Workplace Performance page at Business.com
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