Monthly Archives: December 2016

Annual Performance Review Best Practices

annual performance reviewMany companies such as Deloite and Microsoft have moved away from conducting an annual performance review or appraisal. In their evolution as an organization they realize that this is not the best practice to boost employee productivity and morale.

However, many companies still force their managers and employees to do an annual performance review. If you are in the situation, then you have no choice and must go through with it.

 

Conducting Regular Reviews versus an Annual Performance Review

Many managers and employees dread this meeting and for good reason. If you have not sat down during the preceding months to discuss the performance appraisal criteria, then there is cause for conflict and disagreement.

My recommendation is to take on a coaching style of leadership or management and meet regularly with employees annual performance reviewto discuss their performance. This is effective to:

  • Build a relationship based on trust
  • Improve mutual understanding
  • Clarify expectations
  • Identify and remove roadblocks to performance
  • Give feedback about performance, both positive and negative
  • Increase employee motivation and engagement
  • Set goals for improvement
  • Identify training and development needs

If you have a monthly or minimum quarterly performance review and discussion with employees, the annual review will be easy. You will both be on the same page. If you are forced to use a rating scale with pre-established performance criteria, you want to include that in the regular review meeting.

A coach is interested in developing the staff member and this takes building a trusting relationship and meeting one-on-one regularly.

Employee Performance Evaluation Criteria

It’s important to establish employee performance criteria that is relative o the job and the expected performance results. Some companies use pre-established criteria that is quite general. This is not very effective in conducting a meaningful performance evaluation and discussion.

Rather than use suggested employee performance criteria from an article or software I suggest using a job description. My free job description template provides a section to establish employee performance standards. By meeting the employee regularly, you can update these standards based on the current situation.

Mutual Performance Evaluation

You might also want to have the employee evaluate you as the manager. Some annual review systems incorporate such an approach. You can do this by asking the employee to express their satisfaction with the level of support you are providing. I’ll get more into this in future articles and videos so subscribe now to get notified.

Summary

To avoid misunderstanding, disagreements and possible conflicts meet regularly with employees to discuss and review their performance. Take on a coaching style of leadership and take interest in developing the employee. Show you care and build a trusting relationship. An employee performance review should be a positive experience for all and another opportunity to contribute to ongoing employee development.

Strategies to Reduce Employee Turnover

reduce employee turnoverTo implement strategies to reduce employee turnover, you first need to understand the causes of employee turnover. You can only act on things that you can control and so I’ll focus on those strategies and tactics.

I recently interviewed an applicant for a technical sales job I had posted for a client. The candidate was presently employed but was unhappy in his present job due to what he claimed was an incompetent manager.

Causes for Employee Turnover

  • bad hire
  • poor relationship with boss, colleague or team member
  • poor management, training and support

Bad Hire

Hiring the wrong person for the job is the major cause of employee turnover. Lack of competence due to inefficient skills and inability to perform the job as expected is the case. Good hiring is essential to reduce turnover, improve job performance and retain employees. Poor attitude and lack of work ethic is also a contributor to a bad hire.

Poor Relationship with Boss Colleague or Team Member

reduce employee turnoverPeople leave a bad relationship and not a job. This is often the case as in the real-life example I gave earlier. It’s everyone’s responsibility to ensure they get along with each other, but it’s the manager’s responsibility to ensure that everyone’s trying.

Poor Management, Training and Support

Most people want to know that their work contributes to the success of the department and company. They want clear expectations, good communication with their manager and feedback on the work they’re doing. They also want to use and develop their skills and knowledge to they continue to grow and evolve. People need to enjoy their work and feel valued. It’s the manager’s responsibility to fill the needs of the employees and keep them engaged with the job and the company.

Strategies to Reduce Employee Turnover: Solutions and Actions

  1. hire the right person for the job. Ensure they have the skills, behavioural traits and motivational interests to perform the job well.
  2. foster a climate of collaboration amongst team members. Be honest with each employee and treat them with respect. Encourage open and honest exchange.
  3. provide regular feedback on employee performance. Offer interesting work and help employees grow and develop. Seek employees input on decision-making and share your perspective and rationale.

Summary

Certain jobs and industries have greater employee turnover than others. You cannot control external forces but you can control who you hire and how you lead and coach for job success. Review the points listed above and choose one that you can turn into an improvement project or goal. Review my goal planning articles and videos to put your project into action.