Performance Reviews Are Crucial for Improving Your Business
Successful companies help employees excel at their jobs. Annual performance reviews are a tool most companies use to assess an employee's performance. However, you can also use this tool to evaluate your performance as an employer. Employee evaluations provide an opportunity for introspection and make it possible for you to identify deficiencies in your training programs and company culture. With the proper assessment and application of the data you gather, these evaluations allow you cultivate talent and build a robust and stable company that retains the people propelling your company forward.
Solicit Feedback About Management
A “bad” manager is bad news for any organization. You need to address managerial problems quickly and quietly. Watch for patterns that emerge as you conduct performance reviews. Listen as employees voice subtle concerns and complaints about their managers. The lackluster performance of the employee may be the result of poor management. Pay particular attention to concerns about micromanagers, adversarial managers, and indifferent managers as these individuals can cause your most talented employees to walk right out the door and into the offices of your competitors.
Gather Information Regarding Resources
Your employees will tell you what tools they use, and which they don't. They will tell you which tools make their jobs more manageable, and which will help increase their productivity. Your employees will always tell you what resources they need from your company to succeed. Whether it is break room snacks, a faster computer, or a better client management system, listen as employees give you their wish list. While it is unlikely you can grant every request, addressing the feasible requests will boost morale, improve employee performance, and increase productivity.
Act on What You Learn
Be prepared to take action once you have compiled all your data and thoroughly reviewed the results. Establish the strengths and weaknesses of your organization and identify areas where you can improve as an employer. Improving may require you to enhance benefits you offer or the training you provide. It may require you to provide advanced training to managers or adjust the methods in which you handle internal communications.
Present your findings to senior management along with your recommendations for moving forward. Senior managers are eager for success, but reluctant to change. You can win them over by framing the conversation to highlight the benefits and advantages of making changes that retain skilled talent in a competitive marketplace.
Communicate your actions to your employees. Let them know you have not only heard them and have chosen to act on the information they volunteered during their performance evaluations. By doing so, you will foster an open line of communication between HR and personnel. Open communication is an invaluable advantage for organizations of all sizes. It benefits everyone from the mom and pop on the corner to the corporate HQ downtown.
Assess Your Efforts
Conduct informal follow-up with your employees throughout the year. Discuss the effectiveness of the managerial changes your company has made, the tools you have provided, the benefits you offer, etc. Track your progress and report your findings to the c-suite during your monthly and quarterly reports. Look for trends that start to emerge as the data grows. You can track this data over the year and the years to come. The chances are that the value of your efforts will manifest in higher employee retention, increased productivity, and increased profitability.
Greenlink Payroll can help you tailor your annual performance reviews to gather the information your business can use to grow. We invite you to contact us at (480) 385-2525 to discuss our payroll, HR, and benefits services.