Whether you love or loathe performance reviews, you know they are important to gauge the performance of your employees and their feelings toward their role, department, and even company as a whole. Often, managers opt for annual performance reviews; this means that they are only asking for and providing feedback from their employees once a year. According to SHRM, there has been a lot of buzz surrounding the idea of getting rid of year-end performance reviews and instead, implementing ongoing performance management. Although SHRM disagrees with getting rid of year-end reviews completely, they do encourage companies to do ongoing performance reviews. This is because ongoing performance reviews allow managers to guide employee growth throughout the year. They create a culture of trust and collaboration and keep employees motivated. Read on to learn more about the benefits of conducting ongoing performance reviews and how it will make your life easier in the long run.
1. Nurture the Employee-Manager Relationship
Performance reviews are a great way to get to know your employees better, and the more often they are done, the more you get to learn about them and the better you learn to manage them. Did you know that only 42% of employees trust their own boss? Frequent feedback establishes trust between the parties involved whether it is by instilling praise or offering critical feedback. The more often you do it, the more comfortable the employees will get, therefore opening up even more.
2. Increase the Opportunities for Development
Use performance reviews to ask your employees what they want to learn and to offer opportunities for them to grow. One of the most common strategies for talent retention is training and development. Top talent is always eager to learn, acquire new skills, and grow professionally, so make sure to make it a priority to invest in your employees’ professional development. When you conduct a year-end review rather than ongoing reviews, employees who are looking to grow within the company might not know of the opportunities available to them and start looking elsewhere. This is why ongoing feedback is important. You don’t want your top talent to leave your company because you missed an opportunity to talk to them and get their feedback.
3. Keep Employees Engaged
It is no secret that communication between managers and employees is necessary. When managers fail to meet with their staff regularly, they can affect employee engagement and as we know, this can have a negative impact on productivity. Since employees are often reluctant to approach their managers when they have a problem, performance reviews are a great way to open that door. Talk to your employees and ask them for honest feedback regarding their job and use that time to make it more of a conversation rather than a strict review. By keeping it conversational you show then that you are willing to listen and that you are not there to judge them but to help them grow and succeed in their roles.
4. Keep Employees Motivated by Recognition
Any employee likes to hear when their boss recognizes and appreciates their work. By conducting ongoing performance reviews, you have more opportunities to thank your employees and keep them motivated. When employees aren’t recognized for their hard work, they won’t have the drive to stay productive. If you are not sure how to give recognition to your employees, click here. If your business doesn’t already have a performance-based reward system, then now is the time to think about establishing one. Incentives are a great way to motivate employees to hit their goals and go above and beyond. This can be a dinner at a nice restaurant, a bonus, an extra day of PTO, or even just a gift card. Either way, employee recognition should be a core element of your business’ culture.
5. Save Time and Money by Choosing the Right Tool
Ongoing performance reviews shouldn’t add more work for you since, thanks to technology, they can be streamlined. Choosing the right performance tool can make a big difference not only for the managers and HR, but also for the employees. Take advantage of cloud-based performance management systems like Dominion’s. With tools that help you rate performance, manage goal progress, gather critical feedback, evaluate day-to-day performance, and send notifications, to mention a few, you are guaranteed to save money and time in the long run.
Conducted correctly and frequently, performance reviews can have a really positive effect on the success of your team. Once a year is not often enough to really grasp how well your employees are performing, and how satisfied they are. Shoot for having reviews every six months, quarterly, or even monthly. Consider all the benefits listed above and then take steps to guarantee continued success by conducting ongoing performance reviews.