Economy

Are your performance reviews a waste of time?

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Performance reviews can scare and frustrate staff, and even be responsible for their resignation. Are yours a waste of time or a strategically clever tool to get your business to the next level?

By Amanda Gome and Colin Benjamin

SmartCompany Skills Check

Performance reviews can scare and frustrate staff, and even be responsible for their resignation. Are yours a waste of time or a strategically clever tool to get your business to the next level?

Take our Skills Check. Score your results and see if your capabilities add up. Answer the 10 questions (where a ranking of three means you strongly agree) and see how you rate.

1. We have a clear business plan with stated targets and goals.

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2. All staff know what they are meant to do.

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3. We have very clear job descriptions so staff understand their position and expectations.

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4. We provide independent discussion on required performance before the performance review so staff are not fearful but on board.

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5. We ask staff to provide a draft of their position before the performance review takes place so they have a sense of control.

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6. We have a peer review appeal system so if a staff member feels there is an injustice in the assessment, it can be addressed.

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7. We have a 360 degree assessment so the employee can also grade their manager or boss.

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8. We include discussion on financial rewards and pay rises in a performance review. 

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9. We have a graded bonus scheme so that staff’s reward goes up or down according to performance.

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10. We have very clear short term, medium term and long term goals that are set out clearly in the performance review so staff understand our future strategy. 

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How did you rate?

  • Below 15: Your performance reviews are a waste of time. Why bother.
  • 16-25: Mmmm. Borderline. But it won’t take much to fix them up. Maybe you are a dictorial old school boss who uses performance reviews to control staff. On the other hand you could be a larger firm who does not care two hoots about your staff and have a large turnover. One thing is clear though: take a different attitude to reviews by getting more buy in from your staff. You may be surprised at the results.
  • 26-30: Straight to the top of the class. Your performance reviews are so successful you should mention them when you recruit.

 

Read more about performance reviews

 

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