What Is A Performance Review For Employees?
What Is A Performance Review For Employees?
A performance review is a formal regulated appraisal mechanism in which managers and other key stakeholders evaluate employee performance. It aims to learn more about their strengths and weaknesses, provide constructive feedback for future skill development, and assist in goal setting.
Whatever methodology you choose for annual performance reviews, a well-planned and executed performance review increases employee engagement and sets the tone for creating a culture of feedback and ongoing growth in your organization.
Types of Performance Reviews
weekly or fortnightly performance appraisal
Weekly or fortnightly performance reviews don’t need to collect huge amounts of data each time or be particularly goal-oriented. They are helpful in keeping records and ensuring that a project – especially a tight or fast-paced one – stays on track week after week.
Monthly Performance Appraisal
These are especially useful for businesses that hire people on short-term contracts or freelancers, and for new employees during their onboarding process as they move from job description to actual performance. New projects also benefit from monthly employee reviews to help them stay on track and meet organizational goals. Some employees generally prefer monthly check-ins over annual reviews.
Quarterly Performance Appraisal
Companies divide their business year into quarters (Q1, Q2, Q3, Q4) with set goals, targets and budgets. It makes sense that performance assessments go hand in hand with these. Three months is ample time for an employee to achieve his goals and targets as well as hone his organizational skills. You can piece together weekly/fortnightly or monthly reviews each quarter to create an employee’s progress report ready for the review meeting.
Annual Performance Review
Some businesses still conduct an annual review, but this is increasingly being replaced, or at least supplemented, by pulse surveys and 360 reviews throughout the year. There has been a tendency for these traditional and formal performance reviews to contain too much information about them to be manageable, or to provide a fair assessment of an employee’s efforts. They focused on past performance rather than future performance, and a year is too long for employees to go without feedback.
That said, the full year’s review and feedback aggregated into one 12-month overall performance report is a useful bank of information, provided all feedback has actions associated with it.
Who Runs Employee Performance Reviews?
It is usually the person’s line manager, as they are most aware of the employee’s role and their current job. In some cases, a leadership group, team leader, or more senior leader may lead the review or be someone from human resources.
Why are performance reviews important?
As well as long-term positive results, performance reviews provide an immediate lift – not only for businesses but for employees who want an overview of their strengths and weaknesses and progress in their careers. Here are some benefits performance reviews can offer:
1. Tailoring Individual Roles to Business Goals
Job performance reviews are an opportunity to ensure that everyone understands the vision and goals of the organization and how their work fits into the bigger picture. Individual performance drives organizational performance.
2. Clear understanding of job roles
Performance management empowers individuals to think about their role within the organization and clarify any areas where they have questions. When employees and supervisors can clearly understand and own their specific job duties, any ambiguity in the workplace is eliminated. Each person is accountable for his work and responsibilities.
3. Regular feedback about performance
Regular feedback contributes to better communication in the workplace. Performance reviews help identify an individual’s strengths and weaknesses, and most importantly, give employees a better understanding of the expectations to which they are being placed.
Performance management can be a motivational tool, encouraging employees to not only feel more satisfied in their work but to take more action than expected.
4. Career Development
Performance reviews present an opportunity to plan and set objectives to further develop an employee’s career. The performance management will also help them to get any additional training or mentoring which can act as a basis for developing the human resource for future succession plans.
5. Rewards for Good Performance
Performance management offers a variety of rewards beyond just compensation that show gratitude for a job well done, such as time off and bonuses. The prospect of a better than ‘exceeding expectations’ performance appraisal – one where it is assumed that you have gone above and beyond – is an incentive to perform well and can be chosen n the door to career advancements within the future.