Review Revise Reviews

Do reviews benefit your employees? Do they benefit the business? Some companies have found that yearly reviews have averse effects on their workers. Some individuals become discouraged by the negative feedback that they receive during a review. In turn, they become less productive. Others become overwhelmed by all the information that they are given during the review and then have a hard time forming their goals for the next year. There are then employers that find it easy to have weekly or bimonthly meetings with employees to give them constant feedback. They don't see it as hand holding but as an effective means of communication and development of expecations as the business moves toward a set of goals. These are two extremes in the review process. The Wallstreet Journal shared an interesting statistic:

“For most companies, employee reviews are still an annual rite of passage. Some 51% of companies conduct formal performance reviews annually, while 41% of firms do semi-annual appraisals, according to a 2011 survey of 500 companies by the Corporate Executive Board Co., a research and advisory firm.” With half of companies doing annual reviews, what approaches is everyone else taking? A yearly review doesn't seem applicable. Businesses should be looking outside and within regularly. If you stop and look at your competition once a year, you will quickly get behind in the game. Employees need to know how to respond and keep up with the company goals. This cannot be done with one conversation a year to address the issues.

Communication with everyone in the organization is key. The more communication, the more organized and intentional each department will be in achieving company goals. At times, it is hard for employees to determine if they are becoming an asset to a business since they receive little or no evaluation from employers. There are many people that tread water in companies. They take up space and resources instead of helping the business move forward.This is easy to do when you stay under the radar. Regular communication with employees forces employers to investigate what each department and individuals within it have achieved in a recent period. This type of communication cannot be achieved by simply doing one review per year.

Feedback doesn't allow passivity. It forces decision making and progress. If there is no improvement, employees face the risk of losing their job, this creates incentive to follow success metrics. If you want your employees to reach their full potential, push them toward action. A review should include a self review by the employee where they share their accomplishments and where they think they are going within the organization. As they receive constructive feedback on their past achievement, individuals within the organization will have a clearer understanding of what is expected of them and how they should move forward.

Reviews can make workers more productive, focused, and aligned with the team based on the goals that they develop. They are also a chance for growth. Employees get confortable or bored once they've reached a salary level that meets their basic needs. They no longer have a drive because they are not worried about the rent or the vehicle they need to replace. This is when managers need to challenge and drive their personnel. Inspired and passionate people are highly productive and likely to stick around within the organization. Small wins are important not only because they lead to larger wins for the business but also because they give employees a sense of achievement. If we don't feel like we are moving forward, our producvitivy decreases. Changing the review structure toward smart goals can be very beneficial to a business.

It is important to determine an effective review system for your organization. Some companies can be very effective with fewer reviews and having them more often would waste time. Others use them as a means of communication and keeping departments up to date with each other. A great model to use is the business model. Most businesses have sepcific goals for each business quarter. Sit down with your employees to determine how their goals can allign with the goals of the business for each quarter. A great way to challenge departments is for them to bring goals that they have developed to you. Evaluate them and decide if they align with your expecations and what you would like to see reflected based on quarterly goals. Having a review each quarter also keeps employees busy while helping you and them determine how they can be an asset to the organization. Include a self review. It is always illuminating to understand how an employee understands their work eithic and contribution to the organization. Reviews should be a conversation and an opportunity for growth. Don't let them be a burden to you or a menacing meeting for your employees.