"Even in challenging times, it's important to keep your team motivated and engaged. Learn how to conduct inspiring performance reviews during a down

Intro...

As the manager, your job is to rally your team members and inspire them for the year ahead. But what if your business isn’t doing well? How can you objectively assess individual performance? And how can you balance realistic expectations for the future while also fostering a sense of leaderly optimism? In this article, the author outlines strategies for how to conduct a motivating performance review when business is down. Preparation is paramount regardless of the state of the economy, but in tougher times, providing accurate and insightful feedback becomes all the more crucial.As a manager, your role is to motivate and inspire your team for the year ahead. However, what do you do when your business is struggling? How can you objectively evaluate individual performance? How can you maintain a balance between realistic expectations for the future and promoting a sense of leadership optimism?

This article provides strategies for conducting a motivational performance review when business is down. Regardless of the state of the economy, preparation is essential, but in challenging times, accurate and insightful feedback becomes even more critical.

Performance reviews can be difficult, especially during tough economic situations when the company isn't doing well. It's important to motivate and inspire employees, even when promotions and raises aren't possible. But how can you objectively evaluate individual performance during such times, and how can you maintain a positive outlook while also being realistic about the future? It's a tricky balance, but one that's essential for keeping your team engaged and productive.

Performance evaluations are often perceived as tedious professional tasks that are also stressful conversations between managers and employees. These conversations bring together high stakes, personal ego, and intense emotions all in one conference room or virtual space. That's why "end-of-year reviews are universally hated" by managers and employees alike, according to Karen Sedatole, a professor at Emory's Goizueta Business School. These evaluations are uncomfortable for supervisors to provide feedback and corrective advice, and it's not enjoyable for employees to receive it. These tensions are even worse when things aren't going well from a financial standpoint.

To ensure a constructive discussion, Tonushree Mondal, who runs a boutique HR consulting firm, suggests being "very clear upfront" about the challenges facing the business and how they've affected your employees' goals and expectations. "If you've been realistic throughout the year, there shouldn't be any surprises," she says. Your goal is not only to review the past year but also to prepare your employees for potential challenges in the coming year. Here are some strategies that can help.

In order to conduct a comprehensive performance review, managers must engage in thorough groundwork and reflection, as per Mondal. It is not uncommon for managers to proceed through their day-to-day routine without a clear sense of direction. However, for these conversations, it is essential that they come prepared with written evidence.

Managers must outline their employees' accomplishments, such as successful projects or skillful client handling, while also noting areas for improvement. It is also advisable to seek input from colleagues who work closely with the employee. Adequate preparation is crucial regardless of economic circumstances. However, in challenging economic times, providing constructive and informative feedback becomes even more important.

Dwelling on economic conditions may not seem like a productive or pleasant way to initiate the conversation. Nevertheless, Sedatole suggests framing the performance review within the broader economic context. Managers should acknowledge that numerous factors that drive performance are beyond the control of both the employee and the organization. A pragmatic yet supportive approach is preferable. Managers may convey that they are all in it together and must weather the storm. Talking about the challenges of the tumultuous economy also provides an opportunity to offer context for changes, such as why the bonus pool may be lower this year. Open communication and recalibration of expectations based on macroeconomic conditions throughout the year will ideally have already taken place, according to Mondal.

Helping employees understand how the wider economy impacts the company's performance is a good starting point. Managers must then guide them to see how their specific roles fit into the organization's long-term objectives. In the words of Mondal, "You want to make them think like the business." As the conversation progresses, Sedatole recommends discussing how the employee's day-to-day tasks and projects contributed to the organization's financial outcomes. Making these connections allows them to more clearly "see how what they did over the past year supported or undermined what the company achieved," she says. While last year's performance is in the books, this clarity fosters future improvement. It also strengthens the employee's sense of purpose and commitment while helping them align their priorities in the coming year with the organization's objectives.

In order to effectively manage underperforming employees, it is important to adopt the mindset of a coach. While discussions with high-performing employees tend to be straightforward, those with subpar performance may provide pushback or attempt to justify their performance. To address this, it is crucial to acknowledge their mistakes while avoiding making them feel penalized or accountable for factors outside of their control.

A strategy recommended by Mondal involves adopting the approach of a football coach debriefing with a player after a challenging game played in difficult weather conditions. By acknowledging the challenges faced by the employee and highlighting both their strengths and weaknesses, you can strike a balance between recognition and constructive criticism. Ultimately, it is the responsibility of the coach to address underperformance and provide support and encouragement where necessary.

When addressing underperformance, transparency is key. The approach taken depends on a variety of factors, including the nature of the job, the employee's capabilities, their willingness to improve, and the manager's availability to support them in getting back on track. In an uncertain economy, there may be less tolerance for underperformers, making it especially important to be frank during performance reviews. It is important to avoid making promises regarding job security that cannot be kept while emphasizing the opportunity for improvement and long-term career growth.

In difficult times, it is also important to explore non-monetary means of motivating employees. Research has shown that providing autonomy, growth opportunities, and meaningful work can be powerful motivational tools. Seeking feedback from employees during performance reviews regarding what would improve their job satisfaction can also be effective. Additionally, employees may be interested in mentorship opportunities or cross-departmental projects that provide exposure to new colleagues and disciplines.

Finally, it is important to pay special attention to high-performing employees, who may be particularly in need of inspiration and new challenges. Providing stretch assignments and increasing their visibility to senior leadership can be highly motivating. While promotions may not be immediately available, emphasizing the opportunity for advancement in the future can help employees see the value in sticking with the organization during difficult times. By taking these steps, managers can effectively address underperformance while also motivating and retaining high-performing employees.

Here are some constructive principles to remember while conducting employee reviews:

Do:

• Adopt a supportive and empathetic tone during the conversation by acknowledging the challenging economic conditions and external factors that are beyond your employee's control.
• Help your employee understand how their daily tasks contribute to the overall success of the company, thus reinforcing their sense of purpose.
• Offer alternative means of motivation such as autonomy, growth opportunities, recognition, meaningful work, and increased flexibility to encourage their development.

Don't:

• Be unprepared. Before the review, reflect on your employee's performance, both positive and negative, and gather feedback from colleagues to provide a well-rounded evaluation.
• Avoid blaming your employee for factors beyond their control. Instead, take on a coaching role that recognizes their achievements while identifying areas for improvement.
• End the conversation on a negative note. Express gratitude for their hard work and remind them of how much they are valued to uplift their spirits.

It is essential to conclude a review on a positive note. Despite the uncertain economy and the competitive challenges posed by your rivals, as a manager, it is incumbent upon you to rally your team members and instill in them the inspiration to persevere and succeed in the coming year. It is crucial to maintain an optimistic outlook and highlight the cyclical nature of economic shifts. Express gratitude for your team's hard work and remind them of their true north star, whether it is providing top-notch services or products to customers, devising innovative solutions to problems, or fostering a supportive work culture. Additionally, recognition plays a vital role in this regard. Therefore, ensure that your team members understand their value to the company, and emphasize how their work matters and why it is essential.