How to Complete Effective Performance Reviews

Do you groan when the time for performance reviews roll around?

You are not the only one!

Shocked? We didn’t think so. Managers and employees alike dread the traditional annual employee review, which has persisted throughout the business world for decades.

What might surprise you is that the traditional way of conducting staff reviews is not only a total drag, but it is ineffective, if not downright bad for business.

Research shows that a whopping 30 percent of performance reviews actually decrease employee performance. Oops!

But just because the old style of review has become irrelevant to a modern workforce, it doesn’t mean the process should be scrapped entirely. There are plenty of ways to reinvent and adapt your staff reviews so that they are quick, easy and infinitely useful for your employees and the business.

Here is what you can do…

 

How to Complete Effective Performance Reviews

Give Prompt and Regular Feedback

Scrap the idea that performance reviews should only happen once a year at a formal sit down. There are so many reasons this idea just does not work, such as:

  • It is difficult to summarise a whole year in one review, especially if items you want to discuss took place months ago
  • It is stressful for all parties
  • Feedback is commonly only from one person (who may be unwittingly biased)
  • There is little feedback or follow up during the year
  • Managers suffer from “the recency effect” (only recollecting events from the last few months rather than the entire year.)

Staff reviews should be about coaching and developing your staff, not just reviewing past performance. Employees want immediate feedback – even if it is negative. The quicker you can provide feedback, the more likely it is that you can change (or reward) behaviour – resulting in a higher performing individual.

 

Mix It Up

You don’t have to trash the entire concept of the annual staff review. When combined with regular informal catch-ups and slightly more in-depth quarterly conversations, it can be a valuable tool to sit down with your employee and renew their goals and aspirations for the year ahead.

Just make sure it is supplemented with those regular catch ups!

 

Ditch the Numbers

Trying to condense an entire person’s work ethic, success, challenges, goals and behaviours into a single number or rating is not only one-dimensional, but it is also ineffective. Numbers tell you very little about the growth or development of an individual.

Instead, focus on capturing information in a more expansive way. Don’t be limited by a score. The key is providing honest feedback on all areas of their performance. You can tell very little from a number on a page. But real constructive feedback can work wonders.

 

Keep It Positive

It is no surprise that 90 percent of employees are more motivated by positive feedback than “constructive feedback.” Managers who are afraid of conflict might save up all their unpleasant conversations to have at a performance review – preferring to get it all out of their system in one go. But a staff review should focus more on the good than the bad.

Take note of all the good things that your team do. Not just their work, but their attitude around the office, how they help their colleagues, even if they pitch in to clean up the break room. Positive reinforcement is really helpful and will help make performance reviews so much more manageable.

 

Look Forward, Not Backwards

If you are providing feedback to your staff on the spot as it is needed, then reviews can be used more as “previews.” Spend time with your employee creating goals and objectives, rather than spending an hour rehashing old material.

That switches the focus from the past to the future. Talk openly about their goals for the year if they want to upskill and if there is the chance of more responsibility and progression. They will leave feeling energised and ready to take on the year head.

 

Listen Don’t Lecture

This is a conversation between two people. And part of being a good conversationalist is to listen openly. Allow your employee to lead most of the discussion, and listen more than you speak. This shows them that you respect and value their opinion. It will ensure they feel a valued member of the team.

 

Include the Rest of the Band

Studies show that often, reviews and ratings are more reflective of the person doing the rating than the person being rated. Translated, that means the manager may have biases (even if they’re not aware of them). To avoid this, and get a well-rounded, more accurate insight into a person’s performance, bring in peers and other managers, or even request customer feedback for a 360-degree review.

 

If you are still groaning and scratching your head about the performance review process then feel free to get in touch with us here at Spice HR. We can help you to establish a review process that works for your workplace. Drop us a line today.

 

What Is Your HR Data Telling You About Your Business?

Data. Many people think of it as numbers that someone rapidly types into a spreadsheet and then uses a complicated formula to calculate something.

But data comes in many forms. Including HR data. That is data that you can use practically in your business to tweak processes, increase staff morale and look after your people better.

We tend to think that if the Spice Girl’s management team had spent more time analysing their HR data, the band would not only still be together today, they would have a level of success to rival the Beatles…

Okay, maybe not. BUT they may have been able to stretch the gig out a little longer, keep their most talented members – ahem, yes, there were a couple! – from jumping ship early and had a much more positive team culture.

How are the Spice Girls relevant to your business? Well, HR is so much more than just crunching numbers, dealing with disputes and endless piles of paperwork. In fact, HR analysis is a rapidly growing field of expertise that modern, successful businesses are using to their advantage.

Let’s look into how you can use this data in your business.

What Is HR Data And How Can You Use It?

There is plenty of useful information in your HR functions if you know where to look for it. Using the data you collect from performance reviews, exit interviews, training information, staff satisfaction surveys, staff retention and even sick days, you can make smart decisions that add immense value to your business.

HR data collection is not a new thing, but utilising it effectively – if at all – is a relatively recent advancement. It is all well and good conducting exit interviews and monitoring sick days, but what is the point if you don’t use that information? It’s like buying a rack full of spices to improve your cooking and leaving them sitting in the back of the cupboard.

The key to using this information to drive success is knowing what to look for. Is there a specific issue or question you want an answer to? Do you want to know how to reduce absenteeism, evaluate staff training, or predict which new hires are going to stay the distance? HR professionals can nail down the questions, use the freshly gained or existing data to do all of these things and more.

Here are just three things your HR data will tell you if you know how to ask:

How To Retain Your Top Talent

Does your data suggest that once your employees become proficient at their jobs and reach a certain level, they will leave? Then it is time to dig a little deeper to find out WHY this happens. Then you come up with solutions to keep your top achievers on board, such as more opportunities and training, or a better work environment.

You will only find out the reason for their departure by asking them. We suggest conducting an exit interview with each team member that leaves the company. Not all will be leaving because of the happenings at your business, some will leave for personal reasons. But, you can find out a lot about the culture, processes, work environment and available resources by asking people their opinions.

 

How To Keep Your Employees Happy

Everyone knows that a happy employee is a productive, loyal employee. Do you really know if your top performers are satisfied with their work?

If not, find out. You can look at absentee rates between departments or individuals, assess who your most efficient team members are, then use those insights to make improvements. The bonus of a happy workforce is staff retention, which saves big money on recruitment and increases efficiency.

You can also ask your team to answer some survey questions. To find their true feelings, you can make it anonymous. You just need to ensure that you are asking the right questions to get the targeted data that you need.

 

Assess Performance

Did Posh Spice work harder than Baby Spice? Did Sporty bring in more money than Ginger?

They are important questions to ponder within your own team. If you know which employees work faster and produce a higher quality of work, you can aim to replicate that productivity across the board. A key thing to understand is, what is making them so much more efficient than the rest of the team?

Once you understand that, you can act accordingly. It might mean offering further training for underperformers, boosting staff morale, offering flexible working conditions, team building, or any number of other things.

 

If you would love to access the hidden gems in your HR data but you aren’t sure where to start, then give us a call here at Spice HR. We can help you sift through the information and boost business at your place. Get in touch today.

Stop. Collaborate and Listen …

 

Stop.  Collaborate and Listen … Spice is back with a brand new invention.

Got an HR problem yo, we’ll solve it. Check out our skills while the Spice Gals resolve it!

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Listening is Everything

Listening in Orange

 

The art of listening is a learned skillset that can have a tremendous impact on your work environment.  It will ensure you actually hear when your staff tell you what they want, what they really, really want!

Call the Spice Gals today to spice up your listening life – if you really, really, really wanna zig-a-zig-ah!

Keep the glass houses for tomatoes!

stone throwing

To ensure everyone knows your workplace policies contact us.  We’ve got some nifty ideas to help you document and socialise your rules and expectations so that all your staff are on the same page.

 

Time to listen up folks!

We could all do with this reminder from time to time.  Listening to understand is a learned skill.  Spice HR specialises in creating and delivering targeted onsite training, to help your staff with their communication.

Get your staff listening in the right way, contact the Spice Gals today!

THE biggest communication problem is we don't listen to understand.

Integrity is everything

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