Performance reviews in some capacity are necessary for business growth and talent development. Traditionally, performance evaluations have been completed annually, though many companies are opting to revamp their tactics and review employees more regularly throughout the year. As the first quarter winds down, businesses should be asking themselves whether evaluations are necessary at this juncture.
Performance tracking is still relevant
While performance reviews tend to elicit feelings of anxiety in both reviewers and their workers, they are still relevant and important in the workplace. CPS Recruiter stated these discussions improve career-planning decisions for both the business and its employees.
Many corporations have goals that need to be met by the conclusion of each quarter. Some businesses or departments rely more heavily on this schedule than others. Sales teams, for example, must have a successful first quarter to get off to a running start for the rest of the year. Sales Training Connection stated sales managers must take time at the end of each quarter, and the first quarter most importantly, to assess the progress and performance of the team as a whole and individuals involved.
Other teams can take a page from the sales manager's book and administer reviews when the first quarter has finished to ensure employees are not establishing bad habits early on. Every team member likely has a routine that he or she follows when approaching a project. If this system is producing less-than-stellar results, it needs to be addressed before it becomes engrained and habitual.
Revamping the evaluation process
It's becoming more evident each year that the current performance evaluation system isn't working for many employers. An annual, all-encompassing discussion is at once not enough and too much. It causes a great deal of stress on human resources and wastes millions of hours, according to a Deloitte survey. Fifty-eight percent of respondents considered their current approach lackluster when it came to increasing employee engagement or improving performance. A system taking up too many resources while providing ineffective results needs to change.
One alternative to the annual review is an ongoing, project-based approach to offering feedback. Rather than summing up an employee's entire year, managers can take a moment each quarter or at the conclusion of a major project to identify what the employee has done well and where he or she can improve. The research group came up with four key questions managers should be asking themselves in preparation for the review to best assess performance:
- Given what I know about this employee's performance, and if it were my money, would I pay this person the highest salary possible and include a bonus?
- Given what I know about this employee's performance, would I always choose him or her to be on my team?
- Do I think this person is at risk for low performance?
- Do I think this person is ready for promotion today?
These inquiries set up management and human resources professionals for more productive feedback to offer team members. Employee management software can help businesses formulate more meaningful performance review processes and policies, ensuring workers remain engaged, challenged and contributing members of the organization.