How to Perform Employee Yearly Reviews
Many managers find employee performance reviews difficult to do, so they either put them off or not have them at all. At best, this can decrease employee morale. At worst, not having performance reviews can make good employees leave the company. Properly conducted performance reviews can significantly enhance motivation, morale and production levels of employees.
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Things You'll Need
- Ongoing file of employees' work
- Objective performance measurement review
- Corresponding employee self-appraisal form
Instructions
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Increased pay alone does not increase employee motivation and morale. People want to know how they performed on their work, what they did well and what still needs improvement. Yearly pay increases without a performance review will keep employees satisfied, but they will not be motivated to do more. The best way to motivate an employee is by having an accurate performance review. A performance review that contains inaccuracies about an employee's work will lower motivation, even with a pay raise.
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Have a working file on each employee during the year that includes the responsibilities that are to be performed and how they are to be measured. Continually update this file whenever an action item is completed with performance measurements, positive comments or productive criticism. Do not try to rely on memory and complete a yearly performance without ongoing records.
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Review the employee as objectively as possible. Use performance measurements as guides, not subjective critiques. For instance, what were the number of projects finished successfully, how many goals and objectives were met, what areas continue to need improvement and how did the employee exceed expected measurements?
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Discuss four major areas: how was the employee successful at the job, what areas present a challenge and need improvement, what are strengths and weaknesses based on the performance measurements and how can both the employee and the company develop a plan for further improvement?
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Compare the employee's self-appraisal with the supervisor's performance review on the same measurements. Look at ways to resolve any areas of disagreement between the two evaluations.
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Provide brief status reviews on a quarterly basis, to not depend on only one yearly review. Performance reviews should be a consistent part of a working relationship.
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Tips & Warnings
New supervisors should talk with previous ones about their employees' performance, especially if new managers assume their positions close to the yearly reviews.
