Employers have overwhelmingly supported formal performance reviews in our special SmartCompany poll.
Just over 70% of the 107 respondents said they conducted formal performance reviews. Of these, 84% said the reviews were beneficial to employees, 85% said they were beneficial to the company and 82% said reviews were beneficial to them as a boss.
Of the 30% of respondents who do not conduct formal performance reviews, half said they are a waste of time and more than 83% believe it would be better to replace the formal performance review with other staff appraisal methods.
If you’re looking for ways to get more out of your performance review process, here are five tips from our blogger Michael Phillips:
- Informal is fine: No need to put someone under the spotlight and grill them in meeting room. Most of the time, a quiet chat over a coffee or beer after work will get you far more real and relevant responses than the structured responses you get from planning a “formal” meeting for the previous 12 months.
- KISS – keep it simple, stupid: All the employee really wants to know is “did I do a good job? Will I get a promotion/more money/new office? What are my opportunities in this business?”
- Listen and act on promises: Listen to what the employee has to say, write it down if you really need to, and if you make promises, act on them.
- Make them shorter but more frequent: That’s right, you don’t need two hours of gibberish; just get to the point and be open and honest and try to meet with your employees as often as you can. This is the way to build trust and form a solid working relationship.
- Motivate: These are critical times to employees (especially younger ones). This is the time to stimulate their drive and get them excited about the future. Share the plans for the business with them, make them feel like an important part of it and give them responsibility.