How to make performance reviews more effective

Today we’re looking at what ACTION can be taken to make performance reviews more effective, informative and encouraging. After all, a chance to sit one-to-one with your employees is always a good thing – it encourages an open line of COMMUNICATION and a better working relationship.

So what can be done to revolutionise performance reviews to make them work for your business?

Ditch the guidelines

The biggest problem with most performance reviews is that they rely too heavily on behavioural or achievement guidelines.

For an employee to be deemed as performing well, they must be living up to previous employees’ standards and matching their progress.

 This can be very demoralising and can lead to staff feeling below par or inferior.

 Individuals develop at different rates and in different ways and so forcing set goals on staff is a good way to knock someone’s confidence.

On top of this, you are encouraging everyone to behave in the SAME way. You are asking employees to reach the same targets, at the same time, in the same way.

This is hugely limiting to your team’s INNOVATION levels. How do you expect your company to evolve if you want everyone to be carbon copies? It just doesn’t work.

By ditching the guidelines and focusing on individual achievements and contributions, you’re already on your way to making a more INCLUSIVE workplace and more successful performance review.

Make it positive

Another big problem that I hear about a lot is that employees can feel like performance reviews are too critical.

As a leader, it can be easy to focus on mistakes and forget all of the ways that your employees have done exceptionally well.

While critiques should be honest, if you make your employees feel like they can’t make mistakes, you are reducing the likelihood of them contributing ideas in future. As we’ve previously discussed, fear of FAILURE is a huge block on INNOVATION. Failing is normal and natural.

Instead, use your performance review to tell your employees about how their INDIVIDUAL contributions have benefited the company. Praise will boost their self esteem and lead to higher levels of engagement, which is fantastic for productivity.

Encourage discussion

Don’t just talk AT your employees, create an open dialogue! Ask them how they think they’ve performed and what’s gone well (or badly!) for them. This way you’ll get a better insight into staff morale and create a sense of INCLUSION that your employees will appreciate.

Ask for ideas

Now this is the key. Don’t just look back on the past, bring the focus to the FUTURE. Ask your team to bring you ideas of what they would like to see happen in the company.

It can be pitches for new products or services, or something small like an office request. You never know what can turn into a GOLDMINE idea.

Better yet, by asking your team for ideas, you are showing that it is THEIR business too, and making them feel like they are equals. This is fantastic for creating a more INCLUSIVE WORKPLACE that we’ve already shown to be an amazing motivational tool.

Make more time

What good is a YEARLY performance review?! If your business is thriving and adapting, a lot can happen in a year.

For performance reviews to be successful, they need to be fresh off the mark. You should be looking at the goings on of the last few months to identify what is working, what isn’t working and what can be improved.

Instead, most businesses are ignoring something for six months or so until it is review time. By which point, the idea or event being discussed is old, stale and no longer relevant. Make time for performance reviews at least quarterly.

Ask for feedback

Finally, you’ll never know how successful your performance reviews are unless you actually ASK your employees. They might give you invaluable feedback that can greatly improve your system and make performance reviews an immensely useful tool.

So, there you go. Top tips to make performance reviews work for your company and your employees.

As you can see, a lot of it comes down to making for an INCLUSIVE workplace and encouraging OPEN COMMUNICATION.

If you want to find out more about the power of inclusive leadership in revolutionising your business, take a look at our Courage: Inclusive Leadership in Action program.

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Maureen Frank - Chief Disruption Officer - Diversity and inclusion game changer

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