The performance review process is a significant aspect of employee management because it uncovers individuals’ and teams’ strengths and flaws. Knowing them gives you an upper hand as you can capitalize on the strengths and take relevant steps to address the gaps.
While you may define a schedule and process for your business, you cannot take a set-and-forget approach. The system will probably require some adjustments as your business scales or trends and expectations change down the road. You may need to do it sooner than later when you notice something being amiss.
Here are some signs that you must fine-tune your employee review process for better outcomes.
Sign #1- Feedback is irrelevant to current performance
Employee feedback is relevant only if it is about their current performance. After all, people can improve only when they gain insight into real-time performance issues and bottlenecks. They cannot address the past ones, and the gaps will likely increase if they do not work on current performance lags.
Your review process definitely requires a revamp if managers do not provide feedback often enough.
Sign #2- Employees dread performance reviews
Performance reviews should be constructive because the purpose is to make people better at work. But if you notice people becoming anxious and stressed when the review season comes, you must definitely rethink your process. Any process that makes people uncomfortable can affect their productivity and efficiency, so you must address the concern by reworking it sooner than later.
Sign #3- Managers seem reluctant to give honest feedback
Honesty is the mainstay of effective performance reviews, so you should consider a revamp if managers seem reluctant to give honest feedback. In fact, Investing in 360 performance review software is a great idea as it helps you create a viable process.
Besides ensuring honesty, the process is more comprehensive, so you have a better picture of individual strengths and weaknesses. Moreover, the overall vibe is constructive and positive.
Sign #4- Your people are not developing
Performance reviews aim to help people get better, but a lack of employee development is a warning sign of the process being below par. Thoughtful feedback and seamless communication help people grow. When these elements are missing, your managers may require additional training regarding performance conversations and discussion points.
Lack of development is a serious concern because you may encounter high turnover and low retention if you fail to address it.
Sign #5- Reviews happen only once a year
Performance review should be an ongoing journey because continuous improvement is the key to organizational growth. You need to reconsider the process if it is only a once-a-year thing.
Research indicates that regular meetings and constructive feedback keep employees engaged and committed to their jobs and boost their productivity in the long run. Ensure that managers do not wait for a formal annual review but provide ongoing insights into what people are doing well or could improve on.
Pay attention to these subtle signs, and act on them to fine-tune your performance review process. The more proactive you are, the better your chances of building a high-value team for your company.
