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Strategy

Six Ways to Conduct a Better Performance Review

Here’s how to get the most out of this important conversation.

It’s my favorite time of the year, said no one ever. While feedback is critical for a well-functioning workplace and for fostering communication between supervisors and their reports, performance reviews tend to be awkward for all involved.

These days, employees find them downright unhelpful. According to Gallup, only 14% of workers strongly agree that reviews inspire them to improve their performance. Part of the problem: Feedback is provided sparingly. Gallup also found that almost half of employees receive critiques from their manager only a few times a year or fewer. So, an issue that arose in May is long gone once review time rolls around, and the conversation can often feel like an unnecessary rehashing of the past or praise that’s come too late.

Here are six ways to conduct a better performance review. Bottom line: It should be a summation of the feedback the worker has been receiving all year, as well as an opportunity to chart goals for the next 12 months and establish an action plan.

1. Share notes ahead of time. Have your direct report submit a self-review and think about accomplishments ahead of time, and then give him or her at least a week’s notice before the actual review. That will give each party time to reflect on the self-review and the supervisor’s plan for the meeting, including the general performance assessment that’s about to be delivered in detail. Be transparent so there aren’t any surprises.

2. Coach rather than interrogate. Reviews can quickly turn polarizing if the employee feels grilled or overly criticized. Ask for their feedback as well, and pose questions about how the team and the department could operate better. While the review should address their individual performance, it should also address how they feel they best fit into the bigger picture.

3. Name specifics. Addressing deltas by simply saying, “You need to take more initiative” isn’t informative or actionable, and can be frustrating to hear. But telling employees, “I’d like to see you be more proactive in making sales calls” and then discussing benchmarks gives them a precise goal to work on. It’s tempting to sugarcoat the bad news with vague advice, but that’s not helpful in the long run. The same goes for praise: Admiring them for their innovation is nice to hear, but they need to know where exactly they’ve been innovative in order to continue the good work.

Only
14%
of workers strongly agree that reviews inspire them to improve their performance.
(Gallup)

4. Establish new SMART goals. Objectives for the future are more actionable if they’re “SMART”: Specific, Measurable, Achievable, Relevant and Time-Bound. They should have specific parameters and deadlines that can easily be addressed at the next review, and that the employee can track between reviews to measure progress. If the goals are too amorphous or general, there’s a good chance they won’t be achieved.

5. Ask about their challenges. Are the deltas they list affected by larger workflow hindrances within the department? Find out where they think their most significant obstacles lie, and ask for feedback on fixing those. Employees know they’re being held accountable during their reviews, but they also want to be given an opportunity to express their opinion and be listened to. At the same time, make sure less-than-stellar performers know where they’re having a negative impact on the team by providing examples.

6. Conclude with next steps. If the review process is once a year, consider scheduling a quarterly check-in to make sure goals are on track to be achieved, with definite benchmarks established for each meeting. That way, there aren’t any surprises at the yearly review and employees feel more confident going in, knowing that the goals are on track. Each meeting should end with takeaways that give the employee a roadmap to success with actionable items to address. If a raise or promotion are tied to the review, schedule a separate meeting to discuss where the employee stands.