Introduction

Employee performance reviews are important for every company, but how they are carried out makes all the difference. It can either motivate your employees to excel or push them away. For this reason, you must ensure the reviews will help them see where they can grow and improve while maintaining healthy business relationships. 

However, writing an effective review is tough, and managers do not get enough help. A survey by Gallup shows that 95% of managers are unhappy with their review process. On the other hand, only 2 out of 10 employees feel their performance reviews inspire them to perform better.

If you need guidance on performance evaluation, Q2 HR Solutions is always ready to help. We have been in the business for over 20 years, helping companies to nurture their people and identify opportunities for career advancement. Keep reading as we take a closer look at what an employee performance review is and how to conduct it properly.

What Is an Employee Performance Review?

A performance review is a personalized conversation between a manager and an employee focusing on growth and performance. It plays a vital role in continuous performance management by addressing shortcomings, paving the right career path, and creating valuable records for HR matters. 

No matter what you decide, your review should match your company culture and be meaningful for employees and managers. Performance evaluations come in two main categories:

• Multi-rater – Also called 360 reviews, it refers to collecting feedback from several sources. These include the employee, co-workers, and even customers. This is valuable in today’s work environment, where teams often collaborate and evaluate work.
  

• Single-input – In this approach, feedback and evaluation are provided solely by one person, typically the employee’s manager or direct supervisor. It is the traditional method of conducting reviews.

You should not only highlight employee strengths for performance review but also address areas where they can improve. It opens the door for constructive feedback on how they can bridge gaps in skills or knowledge and reach their full potential, fostering a culture of continuous learning within your company.

How To Properly Conduct an Employee Performance Review

An employee performance review can be daunting, but it is a necessary practice that helps you gather with your staff members to discuss goals, weigh upon past experiences, celebrate achievements, and map out future improvements.

When poorly done, it can make employees feel lost and unengaged. For this reason, you should get ready and cover the bases to ensure successful results. Here are handy tips to follow:

Prepare Your Feedback

Before conducting an evaluation, do not go in unprepared or fill out the evaluation form on the spot. Gather your thoughts and feedback beforehand using the form as a guide for the meeting. Having your comments ready lets you keep the discussion on track and ensure you cover all critical points.

While writing your feedback, ask yourself if the employee understands what their job involves, if they meet expectations or underperform in their roles, and if they proactively educate themselves for their position.

Keep Your Remarks Clear

Be transparent and open during the review to avoid leaving your employees feeling lost about goals or misunderstanding your expectations. Instead of using generic terms like “good” or “poor,” use specific employee performance review phrases to help them grasp where they excel and what they need to work on. Examples are:

• Motivates - “This employee motivates their colleagues to do better...”

• Allocates - “This employee allocates tasks appropriately...”

• Understands - “This employee understands our systems...”

• Assists - “This employee willingly assists colleagues struggling with certain tasks...”

Provide Examples and Situations

Be specific when providing employee performance reviews. You can do this by showing examples of their work. If your employee has inconsistent work results, for instance, walk them through their mistakes and emphasize their impact. Then, reassure them that you will help them improve their performance by setting actionable goals, which include a timeframe and metrics, so they can understand how success or failure will be determined. 

Engage Employees To Respond

Instead of simply telling employees what to work on and ending the meeting, ensure the performance evaluation is an open, two-way conversation. Allow them to share their self-assessment. If they are hesitant to speak up, however, engage them by asking about their progress, accomplishments, and how you can further help them.

Provide a Copy of the Evaluation

While employees often anticipate discussions about raises or promotions during performance evaluations, they also value receiving honest feedback about their work. Give them a copy of their evaluation form so that they have a reference to help them stay focused on the outlined improvements.

End With a Focus on the Future

Discussing negative feedback can be uncomfortable for both managers and employees. However, they need to be addressed. After the evaluation, change the conversation toward the future, setting new goals and plans for growth. 

Make sure employees know that you are supportive and want them to succeed. Furthermore, keep your communication lines open for any concerns they have. Ending the review on a positive note can leave them optimistic and motivated rather than discouraged.

Let Q2 HR Solutions Help You

You can count on Q2 HR Solutions to assist your organization with your employee performance review. We will help you implement an evaluation that aligns with your company’s needs and culture. In addition, we will guide you on how to make the process more efficient, objective, and meaningful for your managers and employees. Get in touch with us today, and let us tailor an effective solution for you.

Conclusion

Finding the perfect balance between praise and criticism is vital to a successful employee performance review. To foster employee growth, you should set challenging yet achievable goals. Although it can be complicated, providing honest feedback can motivate your people to take the extra mile.

Look no further than Q2 HR Solutions to revamp your performance management system. Feel free to send us a message for inquiries. We look forward to hearing from you!