We recently discussed End of Year Administration and all those tasks that have been put off, but are still integral to the running of your business.
In case you are not aware of this, good, loyal, smart and hard-working staff can be one of your biggest business assets, so reviewing their performance, giving them feedback and planning for their future with your company is a very important aspect of running your business.
The Performance Review process has gotten itself a bad rap – a performance review does not mean that you are going to berate your employee or take this opportunity to point out any shortfalls or failures.
This process can be used to encourage your employees to continue to grow with your business and ensure that you are helping them to achieve important goals that are also in line with the goals of the business.
As discussed in previous blog posts, it is very expensive to replace an employee – even more so if you have invested a lot of time in training that employee to ensure they fit the specific needs of your business.
So, performance reviews can be a very positive way to kick off the planning process for the upcoming year.
There are many ways of implementing a performance review process. It is a good idea to ask your employees to give you some feedback about how they feel they are doing. What have they learned in the last year? How can you improve their interaction with Management and with the company in general? What are their aspirations? How do they think they are tracking with regards to their career goals?
This feedback should be made available to the reviewing manager giving them plenty of time to reflect on how they feel the employee is performing and to also help them to give constructive feedback.
If an employee would like to take on further study or are planning a pregnancy/parental leave (for instance) in the next year, these sort of details can help your company prepare and plan for the upcoming year and also help the employee feel that they are part of your plan – involvement and engagement are the best ways to ensure that employees stay engaged with and loyal to your business.
The feedback can be negative. If you feel that the employee is not meeting your expectations (you can set the goals for next year when you meet for the performance review), you can give them this feedback, and discuss how you can address any issues to ensure that the employee can meet expectations in the future.
While performance reviews are a great way to review how your employees and your business are tracking, they are also a great way to plan for the future of your business.
Feedback such as better coffee and Tim Tams in the break room might not be helpful, but if an employee feels their skills are being underutilised or if they are willing and able to learn and grow within your business, you are opening a dialogue that could see you and your employee working together towards your business goals.
Often employees are nervous about approaching ‘Management’, if you can structure your performance review process in a way that it is a positive means of communication between yourself and your employees, it makes for happy and engaged employees, a better understanding of your employee and an improvement in their understanding of your business goals – a win all around!
There are many templates for review processes and many studies that will tell you the best ways to implement a review process, but you are the one who knows your business best, you can do your research, or you speak to the experts at Think Accountants about how to best implement a review process that will benefit your business for the short and long term future.
This is a great time of year to open dialogue with employees and begin the year on a positive note, while gathering data/ideas for the upcoming year.