What is a performance review?
Although the numbers can vary across industries, most studies report that over 90% of companies in the US use employee performance reviews. Energage, the HR tech company behind Top Workplaces, uses a unique performance review process. First, Energage employees submit their own performance analysis. Then, managers add input, ultimately documenting the employee’s performance review together, across three meetings.
Employees believe this give-and-take review methodology is more personal and accurate, but it’s not the only successful method. Let’s take a closer look at employee performance reviews, their importance, and our top tips for nurturing a high-performing, people-first workplace culture.
Are performance reviews still important?
If you’re questioning the importance of employee performance reviews, then you’ve likely never experienced a great one. In high-performance, people-first cultures, employees are the number one resource and priority. Checking in to see how they’re working, how they can work better, and what they’re passionate about is crucial for high business performance. Plus, it excites people for what’s next.
According to Top Workplaces Research Lab data, 55% of survey respondents wished managers would provide more performance feedback. This suggests that many companies are missing out and need better performance review tactics. Not just because it’s nice to chat with employees, but because they boost overall business performance.
More insights: Quiet Hiring and Employee Development
Performance review cadence options
There are a few different ways to track employee performance. Whether you’re starting from square one or are already a performance review wiz, here are some options to test:
- Weekly: best for fast-moving projects and people
- Monthly: helpful for freelancers, new hires, and
- Quarterly: track alongside quarterly profit numbers
- Annually: more formal and less popular these days
- Pulse: quicker conversations in between regular cadences
As always, use employee feedback to gauge efficiency and document team progress — the good and the bad! It’ll help you find the right technique faster.
Who runs a performance review?
Calling all managers! If you manage someone, it’s your responsibility to manage their performance review too. That’s because managers know more about individual employees, their roles, and day-to-day tasks. Luckily, performance review tools are out there to steer managers in the right direction and facilitate the most rewarding conversations.
Want to find the best employee performance review tools and software? Jump down to the end of this blog post for the full rundown.
Which performance review method is the right choice?
In addition to figuring out the right cadence for your team, managers and senior leaders must also find the proper review method. Some companies still use more formal, time-based methods, while others have started to mix it up.
Time-based evaluations
Time-based evaluations are one of the most common types of job performance reviews. Earlier, we mentioned Energage’s annual performance reviews. Some companies choose quarterly, monthly, or even weekly evaluations – whatever cadence works best for your team.
Continuous, ongoing reviews
In some organizations, employee performance reviews are a continuous process. Instead of waiting for annual or quarterly reviews, managers and employees provide each other with regular feedback throughout the year. This can be the best way to stay on top of performance in fast-paced environments. Just remember to document all review sessions so you don’t forget down the road.
Management by objectives
Another popular type of employee performance review is management by objectives, also known as ‘MBO.’ This type of performance review tracks an individual’s specific goals and accomplishments instead of the time it takes.
360-degree feedback
360-degree feedback is a performance review method that uses feedback from people you interact with regularly. This well-rounded perspective offers a holistic view of an individual’s performance and impact on other people, customers, and teams. 360-degree feedback is great for businesses in the sales and service industries.
How to conduct a performance review
You must bring empathy and motivation to conduct an inspirational, personal performance review. When managers have a genuine desire to help employees, performance reviews are much more meaningful for the individual, opening them up to discussing how they can better support the business. Even if an employee is struggling, never discourage them. Instead, meet them where they are and offer new opportunities for growth.
Here are some more tips to conduct the most effective employee performance review:
- Provide space for open, two-way dialogue
- Offer employee recognition and appreciation
- Measure and track progress – both at individual and company levels
- Coach employees toward goals and improvements
- Offer managers the tools and time to conduct review sessions
- Employees and managers regularly discuss and update goals
What makes a great review session?
Great performance reviews focus on open dialogue and connecting employee and company goals. At the end of the day, employee performance reviews are all about aligning goals to get both individuals and teams operating at their full potential. Get to know your employees’ career interests, think back to company goals, and connect the two.
To get the best results, managers must also ask for feedback. Ask employees how they feel about the current process and if they have any insights. Then, follow up to build trust and encourage employees to share more often. Don’t forget to document review session discussions, they’re pointless if you aren’t tracking progress.
The Top Workplaces Research Lab report on Employee Development also encourages senior leaders and managers to collaborate. If needed, include employee performance reviews as a measure of responsibility for all managers and give managers the time they need to prioritize employee review sessions.
How to follow up on performance reviews
Talking about what you want to achieve is the easy part. Following up on performance reviews is where a manager’s work really begins. If an employee needs help or tools to improve performance, it’s a manager’s job to get those things done.
As a manager, you also need time in your busy schedule to keep the conversations going. Plan for follow-up discussions, and make sure they happen — especially if an employee has any open issues or goals. The quicker people progress, the faster you can impact company performance numbers.
The best performance review tools and software
With so many organizations conducting performance reviews, there is a lot of data out there about which tools work, and which don’t. Here are some of the internet’s favorite employee performance review tools and software:
- Deel: customizable, continuous feedback, 360-degree
- Mitratech Trakstar: management by objectives, goal tracking
- Primalogik: advanced benchmarking and comparison tools
Learn more: People Managing People’s top picks
Gather feedback and celebrate performance with Top Workplaces
Top Workplaces awards celebrate high-performing, people-first cultures across the country. It is one of the only programs where one employee survey unlocks valuable employee feedback and 80+ recognition awards. Looking to gather better employee feedback and celebrate employee growth? Nominate now to get the people-first recognition you deserve.
