Many companies hold annual employee performance reviews. It’s a good time to gather feedback so you can see what’s working and what’s not. You and your employees can learn a lot from the reviews.
Though some may consider the annual review a big pain. It doesn’t have to be, there are ways to improve the review process. You might want to consider holding performance reviews more frequently. This can help make the review more of a routine exchange of information and less of a "special annual event". It also means your feedback is more directly related to your employee's recent performance, rather than waiting so long to find out something isn’t working well. These reviews may well lead to changes that improve business.
Even quarterly reviews are no substitute for immediate feedback. If an employee does something wrong, or something good, tell him or her immediately. Point out the problem, make sure the employee acknowledges it, and make clear what you expect in the future. And if it's something good, the employee will appreciate receiving a pat on the back. With immediate feedback, this will decrease the likelihood of any surprises at review time.
Before the next review, ask your employees to prepare a list of their duties and any issues, to be presented at the next meeting. Any areas needing improvement, agree on an action plan and put that in writing. The plan may involve more training or taking actions to support the employee, make sure you're living up to the agreement. At the end of every review, summarize the discussion and put the highlights in writing. Make sure your employees get a copy.
Don't limit the review to a score-card on the employee's achievements. If appropriate, the time to discuss career planning, cross-training, or job enrichment. Solicit ideas from the employee. Instead of a judgmental meeting the review may turn into a constructive exchange of great ideas for improvements.
At Summit CPA we offer multiple resources to get your business on the right track. If you need help, contact our office at (866) 497-9761 to schedule an appointment with our advisors.