Do your employees dread performance reviews? Do your managers feel like they are just going through the motions and being pulled away from critical projects in order to satisfy a mandate?

It’s not unusual for the productivity-enhancing objective of performance reviews to get lost in the process. In fact, many companies we know have abandoned the practice, believing that it no longer contributes to employee development, nor delivers enough value to justify the resources it requires. In some cases, companies express concern that the review can give employees a documented justification for suing after eventual termination.

From our vantage point, we are able to see the successes as well as the failures DFW organizations are experiencing in implementing performance reviews. Our unique perspective may be just what you
need to tweak your program to ensure that it delivers constructive value to the employee and the employer. Here are some small suggestions that can make a big difference:

1. Focus on the Benefits to Employees

“What’s in a performance review for me?” Employees want to know. If there are fewer possible positive outcomes than negative outcomes, employees will grudgingly participate—and that’s counterproductive. The first step in ensuring a constructive process is setting expectations for positive outcomes. This should include rewards for meeting projections, career path guidance, and mutual plans for professional development. Strong performance should be rewarded with a discussion of near-term and long-term opportunities within the company. There should also be positive outcomes for employees that need direction; it’s all about how the dreaded feedback is framed. Given that newer employees often ask established employees what to expect, there should be a satisfactory answer.

2. Avoid Negative Surprises

When employees find out for the first time in performance reviews that they are underperforming—especially when they believe the appraisal is in error—they often vent to colleagues. Over time, this is a primary factor contributing to widespread dread about the process. Avoid using the review as the first opportunity to critique an aspect of an employee’s work. Conversely, there’s little reason to leave productive employees in doubt as the review approaches. Provide continuous feedback—positive and negative—to all employees throughout the year, and use the review process to formalize an action plan for continued development.

3. Set Expectations at the Outset of the Review Process

Constructive outcomes correlate with a transparent process. From the time you introduce the subject of upcoming reviews with your staff, outline the company policy on reviews, what the company will provide, what the employee will provide, and what the employee can expect at every stage. In this dialogue, ensure that employees understand the purposes of the written assessment and of the performance review meeting. Any negativity the manager expresses in this meeting will be detrimental to the process.

4. Manager and Employee Provide Meeting Agendas

In organizations with well-received performance review programs, there is a common denominator: Employees are empowered to bring their own agenda to the table. This can include talking about professional development opportunities, a career development plan, potential growth opportunities within the company, and feedback about any company policies and the management they are receiving. However, it is advisable to exclude talk of raises and near-term promotions.

5. Summarize the Process and Action Steps for Each Party in Writing

The reviewing manager(s) and the employee should collaborate on a written summary, including employee expectations at the outset and the corresponding outcomes, manager and employee feedback on the working relationship, and all action steps required of each party going forward. At the meeting, the manager should recount the key discussion points and end the meeting on a high note, showing support for the employee.

The key concepts in successful performance reviews are collaboration, transparency, and continuous communication before, during, and after the process. Many companies are surprised to find that the simplest changes to these elements can produce outstanding results—enough to restore a positive companywide perception of your performance reviews.