3 Steps To Improving Annual Employee Reviews

Managers often recoil at the thought of performance reviews

, for they are seen as a tedious administrative task that is time consuming, confrontational, and, at times, pointless. Employees likewise are unwilling participants. Annual performance reviews are frequently considered unfair as well as a source of work stress and self-consciousness that hinders performance and lowers morale.

But employee feedback is a vital ingredient in managing performance. More, not less, feedback is the solution.

So how can management alleviate the pressure?

1.Meet regularly. Communication is key. Once a year feedback is just not enough to stimulate performance. Open ongoing conversation between employees and management builds trust and relationship. Project feasible goals, agree on set expectations, and determine the standards. Frequent interaction works toward eliminating stress by eliminating uncertainty.

2.Keep records. The demands of management make it difficult to accurately recall an employee's performance for the past quarter, no less an entire year. Annual reviews often default to the last in, first out rule. Human nature influences a manager to consider only an employee's achievements or flaws for the last few weeks. This type of employee evaluation is called an annual review for a reason. Keep a simple record of objective information (goals and outcomes) and specific examples rather than generalized opinions (behavior patterns). Maintaining a file avoids last-minute cramming while also illustrating and tracking your employee's progress throughout the year.

3.Start positive...but be firm. An annual review is a great way to positively influence your employee's self worth. Give recognition and reward. An appreciated employee will be satisfied, more committed to your company, and more motivated to work harder toward for its success! But that doesn't mean you need to cajole, pamper, and babysit under-performing employees. Performance shouldn't be measured by how a manager and employee feel but by goals achieved and results produced. Motivate your staff by creating an engaging work environment that rewards people for their success and develops them when they struggle and productivity and profitability will follow.

Since annual reviews are a vital assessment tool that affects business planning and allocation of budget for the upcoming year. The results of annual employee performance reviews should help shape compensation, training needs, and talent gaps. It is an important measure of the quality of the overall workforce, thus predicting the productivity and performance of the company. So rather than viewing the annual employee review as time consuming, stress producing, and pointless, why not follow the three steps mentioned above to capitalize on its benefits and leverage your employee assets.

Copyright (c) 2010 Ira Wolfe

by: Ira Wolfe

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