Do’s and Don’ts of Performance Reviews

Most organizations require their managers to conduct a performance review of their employees to assess compensation, level of contribution, growth opportunities, and best fit among other reasons, but overall, to assess the organization’s competitiveness with similar organizations. These employee performance reviews can aid managers in formulating a strategy that creates a sustainable, competitive advantage by developing the workforce. This is also a tool to measure the effectiveness of the organization’s current strategy and whether or not it needs to be changed.

Managers use this opportunity to try to find the most relevant contribution(s) the employees accomplished during the year in order properly assess their year end performance review. Let’s face it, you are not going to remember what the employee did from the beginning of the year to the time the performance review takes place without a well stablish performance review strategy.

This is one small, but critical reason why you must have a managerial plan to assess your direct reports in an iterative approach throughout the year. So that when the performance review begins, your conversation is not a surprise for you or your direct report.

Here is a basic list of do’s and do not’s that can help you when you are getting ready to evaluate your direct reports and an explanation of why they are important.

Do – Set the stage. Setting the stage is a crucial component for the end-of-year review because it aligns the company’s direction with the individual level of contribution. This task does not begin two weeks before the evaluation. Setting the stage is an ongoing, iterative process during the entire year. This action includes regular (weekly, monthly, quarterly) check-ins, goal setting, metrics review, methods, growth opportunities, additional assignments, understanding the employee’s personal goals and aspirations to match them with internal growth opportunities, and any other task the direct report overtook during the year. Keep in mind that this is an iterative process that requires active participation from the manager and the direct report.

Don’t – Assess performance based on the last 90 days (or less). Our brains are going to remember the most recent and relevant events whether they are positive or negative. This can lead to an unfair performance review and damage your ability to effectively lead a team and your credibility as a manager.

Why? – You might have forgotten that great project your employee contributed to at the beginning of the year and only remember the last project that did not go as planned, but you can be certain that your direct report remembers at great detail what they did for the organization even if you forgot about it.

Do – Provide Feedback based on agreed-upon expectations. The performance review is an opportunity to debrief what you and your employee have agreed to work on during the year. This should not be a surprise to you or your employees if you have done your managerial job during the year. Both players come to the table knowing exactly what they are going to be evaluated on and why. You can take this opportunity to offer additional assignments to help the employee grow in their career.

Don’t – Bring up out-of-scope tasks as an evaluation metric during the end-of-year performance review. It is very uncomfortable for an employee to have to defend their position when they feel they are being attacked or punished because they did not know a task that is not in their scope of work. This also shows the employee that you did not do your leg work in preparation for this review. Additionally, this can damage your credibility as a manager because it demonstrates that you did not know your direct report’s job scope.

Why? –  Using real metrics and agreed-upon expectations helps the managers and the direct report see the performance review as a growth tool. Both people have the opportunity to see the problem, if any, and attack it from the same point of view to make it better. This approach gives the manager and the direct report the opportunity to share creative solutions that benefit the overall organization during its pursuit of achieving a sustainable competitive advantage.

Do – Compare only to past performance. We use comparisons as a tool to demonstrate change. This can be a great tool if used within the context of the comparison. If you compare the employee’s past performance to the current performance and this does not show any growth, then this tool is effective. This is indicative that the direct report needs help or is not the best fit for the job. On the other hand, if it shows growth that might show the employee is ready to take on more responsibility.

Don’t – Compare performance to other employees. Doing so might sound like a good idea at the moment, but it only puts the employee in a defensive mode. Comparing performance to the performance of other employees creates animosity and makes the employee you are reviewing not feel appreciated for what they do.

Why? –  This is a quick way to lose your credibility as a manager, especially if you are comparing a seasoned employee’s performance with that of a new employee. As mentioned above, this act of comparing employees creates jealousy and animosity because it creates a sense of favoritism in the workplace. Avoid this at all costs.

Do – Ask for feedback. It is good to hear from your employees and their expectations. Many direct reports might not be willing to provide feedback, but it is a good practice to close your meeting with an invitation for them to do so. If they provide feedback, be willing to take an active listening approach and do not defend yourself. Let them express what they feel they need to talk to you about and listen, listen, listen.

Don’t – End the meeting without an action plan. Always end the review with an action plan, either scheduling regular check-ins, follow-up plans, assignment plans, or a growth plan if needed, etc. Ending the meeting with an action plan places you in a position of leadership. You show your direct report that you care about them enough to take the time to develop their career.

Why? – The act of listening can give you great insight on what actions you could take moving forward. Sometimes it is a good idea to listen to feedback to make adjustments that personally benefit you in your career. Listening can also help you define the action plan you need to end your review with. Furthermore, listening shows you care, and this can increase your influence with your direct report while increasing morale and contribution to the organization.