It is at times like now that employees’ performance in the workplace defines the margin between profit and loss. This is where performance assessments come in – when an employee does not put enough effort into his or her assigned tasks, your business loses potential revenue. In a down economy, a business cannot afford a major loss. This is why you need to determine who is an asset to your company and who is a liability.
Performance reviews are not only valuable to employers, but they are important to employees, as well. They are a way for employers to determine whether, and how quickly, their employees are progressing in the business. They are a way for an employee to gain insight as to what his or her strengths and weaknesses are and steps he can take to improve upon the weaknesses. Here are some tips for using performance reviews in a down economy.
Performance Review Step #1: Establish Business Objectives
Learn everything you can about the review process and identify your business needs – this is also called a needs analysis. Consider what has been lacking in the past and find ways that you like to see it improve. In other words, set goals for yourself, your business, and the employees who you manage. A way to come up with goals is to brainstorm a list of general ideas at first, then put down in writing some more specific goals.
Performance Review Step #2: Define the Steps in Achieving these Goals
This may be starting to sound familiar – establish goals, define the steps…But it is a method that has been working for individuals and businesses for years. Once you have come up with a list of very specific objectives, brainstorm some ways to achieve these goals. Determine which role each employee should play in achieving them. A goal is not normally accomplished in one giant step, but in several smaller ones over an established period of time.
Performance Review Step #3: Set a Date
If a goal date has not been set, no one will be in much of a hurry to meet it. Come up with a manageable future date – whether it is a week or a couple months from now – and write it down. You should be documenting information through the entire process, from the very specific goals to the steps in achieving them, and to the date you would like to see the end results.
Performance Review Step #4: Follow the Steps for Achieving these Goals
Let the employees know what you would like to see happening and what they need to change. Give them a specific date to finish each of their tasks. Track their progress to determine whether anything has changed. Keep clear records of performance and behavior. By the goal date, they should have accomplished what they were set out to do.
Performance Review Step #5: Evaluate the End Results
On the date the goals are supposed to have been accomplished, meet with your manager or boss to discuss what you have observed. Then sit down with each of the employees and go over what you have been seeing: what has changed and what has remained the same? Address performance issues, as well as successes. Have you accomplished what you set out to do? Have you met your business objectives? If not, maybe you need to reconsider whether certain employees are preventing revenue gain within the company.
Performance reviews provide an opportunity to review the contributions of your employees, as well as your own contributions to the company. It gives you a chance to hone your understanding of what is expected of you and the people you manage. Finally, it allows you to affirm strengths, weaknesses, and how they can be improved.
A bad economy is all the more reason to continue with the performance assessments. An employee’s performance in the workplace determines whether your business gains or loses in the current market. Employers need to determine who is helping a business to progress and who is only setting it back. Follow these five steps to ensure that employees’ performance reviews are coming back spotless.