The employee review

Employee reviews, just saying the words make managers roll their eyes, and some employees start to sweat. Why is that? Everyone wants to know if they are performing well at work. They actually need to know this information. Not only do we crave the recognition and acknowledgement, we also crave the outcome (assuming it is positive), which is typically raises, promotions and accolades. We also, whether we admit it or not, want to know if we are performing poorly. Because we can't fix something if we don't know it's broken.

Reviews are critically important to the feedback loop that exists between employees and leaders. That feedback ensures that you remain in lock step with one another. Always understanding where you stand and offering a conduit for conversations to happen. Reviews also allow you the opportunity to plan for the future. Ask about their goals, their hopes for the future, their interests and their perspective on how things are going. Not only can you spot a potential flight risk or discouraged employee, you could also identify those with upward potential and the drive to get there. The annual review is an official record of what has happened, and simultaneously an opportunity to have that one on one conversation about what happens next. It's your chance to build trust and respect with that person. Individually that may seem silly or unimportant to you, but it is the cornerstone of building a strong company culture. A topic altogether its own.

Since everyone is aware of what a review is, and their content, you would assume these are commonly utilized in a business, correct? The reality is that they are typically the most underutilized tool in the toolbox. Mostly because they are hardly ever done, and when they are, done incorrectly.

I am always told, the main reason reviews are not consistently done is "lack of time". I have been guilty of this myself, so I understand the perspective all too well. When you have too many plates to balance, you end up dropping the ones that seem the least critical at that moment. The failure here is, this type of thinking is short sighted. There will always be another fire or problem or issue to be resolved. Be careful you are not reacting to the latest news at the expense of missing the strategic and long term items that create real value. Reviews are critical to your operations and you should do them regularly. It's a commitment to your people, and they need to be able to depend on them. Your first step in building trust is to be consistent and dependable.

Performing a review in the first place is certainly step one. A close second is making the most of the opportunity and delivering the message well. A good review is not the handing over of a report card and saying great job. It is also not belittling a person for performing poorly. It is objective, factual and supportive. Therefore, you need real tangible information. Meaning metrics, data and evidence of a good or bad job. This will look different from company to company. For example, comparing a salesman to their forecast, or a project manager to his schedule and budget, or an assembly line worker to their production targets. In addition to data you need empathy (the ability to understand the feelings of another). This is especially important when giving a bad review. Remember, this is your chance to build trust and respect. Ask questions about how things are going, what they are struggling with and what they want to do in 1, 2 or 5 years from now. Get a sense of who they are and their aspirations. This will not only help you shepherd them but will also allow them to feel seen and appreciated. Have you ever heard the phrase, treat others as you would want to be treated? Keep that in mind. At some point in your career there was probably someone who took you under their wing, cared about you and taught you a thing or two. If not, think about how hard it was not to have that.

It is also important to have an outline or framework for your reviews. This ensures you are consistent from person to person. It will keep you on track as you are gathering information to report. You should consider including attendance trends, performance metrics, disciplinary histories, opportunities for improvement, positive feedback, or future planning notes in your documents. In addition to this, always include dates and the scope of time the review covers. It is important that you only review the time documented. For example, if you are reviewing last year and during that period "John Smith" had exceptional sales, but this year is off to a slow start you should not be evaluating him on this year's slow start. You can certainly ask questions about what's going on and offer support, but remember that you will review these details in next year's review. If not careful, that results in a "double whammy" of negative feedback, and it cheapens the great job that was done in the previous year.

The last component of a review is commonly compensation. This is highly subjective, but I suggest not including this portion. If a review has a compensation element then it takes away from the conversation and relationship building that needs to happen in that time. The excitement or concern over pay changing or potentially staying the same has the potential to dominate the conversation, at least in the mind of the recipient. They may tune out what is being said as they wait for the "good part" at the end. Now, say the counter to that is to get the numbers out of the way in the beginning, does that fix it? Typically it doesn't make a difference. Once someone knows how much or how little money they are getting, the remainder of the conversation time is filled with daydreams of their new budget, or frustrations of lack of recognition. That said, remember, these are situations not absolutes, and individual cases vary as all people are different. But I believe you will get the most out of your efforts if you split these conversations. Let the review be the information that informs the increase in compensation. A precursor if you will.

The majority of this message is focused on the formal employee review. This is documented, scheduled and should be a part of your typical business operations. Something I would like you to keep in mind is this. An employee should never be surprised by a review. If you ever see that wide eyed expression in someone's face, whether it be from good news or bad news, you should ask yourself if you have managed this person well. The annual review is the "official" review, but you should be constantly working with your team. Guiding, correcting and advising them as they go along. If someone is struggling in their role, you should be correcting them and working to help them improve. Therefore that person, when told in a review that they have not been performing, will know and be prepared to hear such a thing. Conversely, if someone is a consistent high performer you should tell them. You should be thanking them and letting them know what good work they are doing. This basic feedback loop is critical to your effectiveness as a manager.