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Delivering an Effective Performance Review

We have now discussed everything from recruiting top talent to actually hiring top talent. Now, time has passed and it is time for a performance review. Are they really top talent? Performance reviews when administered effectively can be the single strongest training tool a company can offer. Unfortunately, due to the nature of a performance review, it can also be the single thing that discourages an employee, ultimately ending in their resignation.

Performance reviews are designed to give feedback in an effort to help an employee grow and to increase their performance. Rarely, is all the information discussed positive. Sometimes, it can even seem more negative than anything else. So, the goal is to immediately put the employee on the same page as the reviewer. Surprises are where long lasting issues arise. When writing the review always ensure that you are remaining 100% objective about that particular individual. Also, reviews should be properly balanced. I once had to administer a review to a great employee that had close to a failing overall score. A construction issue lead to a significant (and expected) drop in her store's business. The weight of the store's performance was such that a near perfect review almost ended up in serious disciplinary action to her, per company policy. Companies, as with any training tool, should revisit their review forms/policies regularly to insure an accurate evaluation of the employee's performance to company standards is always achieved.
The best method I have found to avoid surprises, is to ask the employee to write down what they believe are their top 3 strengths and weaknesses. I will then show them my evaluation of their strengths and weaknesses and discuss any discrepancies (more often than not, they are almost identical). This puts the employee on the same page as you. When a topic of criticism is encountered during the review, you have already identified and discussed it. Now you can take that individual point and discuss methods of improvement constructively (not destructively!). The same thing goes for positive information. The employee already knows what the good sections will be, and you can help them grow further, or even use them to help others that may not be as strong in those areas.
Another good tip I have learned along the way is to disclose the "money" portion of the review before discussing the individual points. Employees, I have noticed (and even been there myself), tend to not really absorb the information received in the review, as they are focused on the money. They may also have a tendency to be much more defensive or argumentative about individual negative points as they feel it is effecting their money. If you have already discussed strengths and weaknesses, and now you get the "money issue" out of the way, the employee will be much more receptive to the actual review process.

The last step in conducting an effective performance review is creating an effective and individual action plan designed to nurture the strengths, and develop the weaknesses. Make this is something that is created as a collaboration. It will certainly fail if the employee has not "bought into" the process.

As is evident, the most important part of administering a successful review is the employee's participation. If you can get them on your page right from the start, it is extremely rewarding to witness just how effective an employee review can be for their performance.

"There is no better than adversity. Every defeat, every heartbreak, every loss, contains its own seed, its own lesson on how to improve your performance the next time." - Malcolm X

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