Effective Performance Reviews
By Renee Boyda
Small business owners and managers often have to wear many hats, making it a challenge to invest the time and effort into performance reviews. It can be hard to remain objective and provide constructive feedback given the close-knit environment of the workplace. In addition, employees may have fluid responsibilities, especially while the business is scaling, so knowing which performance indicators to review is not as clear-cut.
Designing an Effective Process
For small businesses looking to streamline their performance review process, utilizing appropriate tools and templates can be beneficial. Simple yet effective templates create structure and help cover all the important aspects. These might include sections for strengths, development areas, goal setting, and an evaluation of competencies needed the role.
When designing these tools, be sure to customize them so that they reflect your company’s values, goals and the specific job roles. As your company evolves, update your process and templates to keep performance criteria relevant to the job and your business.
Providing Feedback to Create Positive Impact
In a smaller company setting, performance conversations can be more personal and tailored to each employee. This personalized approach allows for more meaningful feedback and can lead to stronger working relationships. Knowing how to deliver constructive feedback in a kind and considerate manner is key. Address the unsatisfactory performance, but also focus on future goals and development opportunities.
Consider implementing continuous feedback with regular check-ins and feedback throughout the year. This allows for timely feedback and performance corrections, so when the next review period rolls around there are no surprises.
Specificity is key in performance reviews. Managers should be able to provide specific examples to support their observations of employee performance, demonstrating that they pay attention to an employee’s contributions. This approach is particularly important when addressing areas that need improvement. By providing specific examples, managers can help employees understand exactly where and how they can enhance their performance.
Small businesses should also consider implementing self-assessments as part of the review process. Self-assessments allow employees to reflect on their own performance, share their thoughts about their job, and express their future career goals. This can provide valuable insights for managers, increase engagement in the review process and help employees take ownership of their professional development.
Strengthening the Performance Conversation
When writing performance reviews, managers should always keep their focus solely on job performance and professional behavior. Additionally, managers must avoid absolute language like “always” or “never,” as these terms can undermine credibility. Words must be chosen carefully. Using condescending or dismissive phrases will prevent feedback from having any positive influence on performance and may actually harm employee motivation and productivity.
Leveraging Outcomes to Inform Decision-making
Documented performance review outcomes can also assist small companies with several important business decisions. Performance reviews provide a record of an employee’s skills, achievements and professional growth which can inform decisions about promotions, hiring, career development, training and pay. In cases where performance has been poor, documented performance reviews provide a legal basis for disciplinary actions or ending employment. From a broader perspective, reviews can also generate key insight and considerations in the allocation of resources, staffing and workload distribution.
Is it worth it?
Performance reviews boost productivity and business performance where they:
Recognize employee strengths and accomplishments, providing a general understanding of the skillsets that are available in the workplace
Identify performance improvement areas may otherwise go unnoticed in the day-to-day
Align employee goals with company objectives, ensuring everyone is aiming for the right targets
They are much more than a HR “formality,” and when implemented effectively, the value becomes a worthwhile investment for the business.
Want to learn more?
For additional support or guidance on performance reviews or any other HR related topics, contact Legacy Bowes at www.legacybowes.com.
Renee Boyda is a human resources consultant with Legacy Bowes. Renee is a CPHR Candidate, received her Bachelor of Arts in Sociology from the University of Manitoba, and received both Human Resource Management and Management Development Certificates with Honours from Red River College. Renee is focused on building HR structures and processes to create consistency and fairness in workplaces across Canada. Renee is a proud Metis, with over 12 years of human resource experience in both union and non-union environments. She can be reached at (204) 947-5525.
