Performance reviews don’t enjoy the best reputation in the corporate world. Most employees dread the time of year that their performance comes under fire, meaning they walk into their performance review clearly stressed and uncertain. This environment is neither fun nor productive — not for the employee, and not for the manager who has to carry out the reviews.

This universal feeling of apprehension is usually down to the fact that the employee is, to some extent, uncertain of what to expect in terms of feedback. This shouldn’t be the case. Company communication should extend to regular discussions about how the employee is doing and how they might change their approach for the better.

With a few simple steps, performance reviews can be transformed from a dreaded once-a-year fiasco into a continuous, efficient and productive process.

1. Scrap performance ratings
While it is understandable that you and your organisation would want a quantifiable way to measure the performance of your workforce, performance ratings may not be the best way of doing so.

High-profile companies such as Cargill and Adobe have recently decided to abandon ratings and studies indicate that ratings can actually demotivate, rather than inspire, employees. Instead of focusing on ratings, consider a new framework that emphasises teamwork and empowerment over competition.

2. Introduce regular check-ins
Performance reviews should not be a once or twice-a-year occasion. Continuous performance management is key to employee development and the benefits are evident. The days of endless box-ticking and form-filling are gone and are being replaced with regular check-ins, spread throughout the year. Research, conducted by the NeuroLeadership Institute, reflects that 68% of companies are now recommending that reviews should be, at the very least, quarterly.

Adobe has been incorporating regular check-ins as part of its work culture since 2012. Regular discussions mean that communication between the management and employees is more fluid and less stressful and it allows for flexible readjustment of goals, should it be needed, and it means that the management can more closely monitor progress.

3. Give feedback continuously
Employees should never feel clueless as to the state of their current performance. They should be well aware of their strengths and weaknesses, and they should be able to receive constructive feedback on a regular basis. Continuous feedback has a number of benefits, including increased efficiency, improved morale in the form of a friendlier, more open culture within the organisation and increased productivity. Continuous feedback ensures that employees remain on the right track and work toward their goals.

4. Re-evaluate Personal Development Plans (PDPs)
PDPs are a way of setting development goals, recognising skills and identifying areas for improvement. This isn’t a one-off process, and should be constantly reexamined and adjusted. Re-evaluating PDPs means that employees can determine their strengths and weaknesses so that they can better plan for the future. PDPs can help employees become more motivated, become more self-aware and recognise their full potential by leveraging their existing strengths.

5. Take a forward-looking approach
Nobody wants to attend a performance review thinking that they are going to have their past performance endlessly critiqued and criticised. Instead of looking back, take this opportunity to look forward and focus on development. Accenture’s Chief HR Officer Ellyn Shook has stated that “Rather than taking a retrospective view, our people will engage in future-focused conversations about their aspirations, leading to actions to help them grow and progress in their careers.”

6. Set short-term goals, rather than long-term ones
Long-term goals are important as they help you remain on course and work toward a specific aim. However, it is equally important to use check-ins to construct and discuss short-term goals, which will relate to, and compliment, long-term goals. Short-term goals have the added benefit of helping you measure your progress toward your long-term goal. Short-term goals can feel more achievable as the long-term goal might be measured in months or years while short-term goals can be measured in days or weeks. This will ultimately result in an enthusiastic and ambitious workforce. 

7. Log action points onto performance management software
Your performance review process might be flawless, but unless meticulous notes are taken, steps might get confused or forgotten. Paper notes can be lost or misplaced, but technology can lend a helping hand by giving visibility to key action points and sending out reminders. Performance management software allows companies to monitor and improve employee performance, both at individual and team levels. Notes taken can be accessed by both manager and employee, so everyone involved can review what was discussed at any time.

By Stuart Hearn

About the author:

Stuart Hearn is CEO of Clear Review, an innovative performance management software company. He has 20 years experience in the HR sector, previously co-founding PlusHR, a leading UK HR consultancy. He has also previously worked as International HR Director for Sony Music Publishing.