Ask the Coach - October 24th
By: Merrill Pierce
Dear Coach,
I own a small business that operates without the benefit of any type of human resource team. I often handle the employee matters on my own which has gotten me into some tough spots as its not my strength.
What do you recommend for reviewing an employee’s performance and salary? I am not interested in a complicated process but do want to have some things properly documented and laid out, so my employees know what to expect and what will allow them to grow and ultimately become promoted.
First let me congratulate you on taking this matter into your own hands – not easy. Being as clear and transparent about expectations as the owner/boss and of the organization, helps to alleviate confusion and promotes an open line of communication between management and employees.
This is where an annual performance review can be essential to making employee management as efficient as possible.
Three areas of employee management where performance reviews support your business are, overall performance, employee engagement and retention.
An effective performance review means that you are providing valuable feedback and working with your employees to:
Go over results, whether positive or negative
Set goals and reasonable targets
Outline priorities
Manage performance expectations
Discuss opportunities for growth
There are 5 steps recommended when conducting the review.
Establish a performance management system – this means scheduling an annual check-in that is consistent for all employees
Be transparent– communicate opening about the evaluation process. Make sure that your staff knows what to expect. This will help prepare them.
Hold an effective meeting – prepare an agenda that includes – employees’ key performance indicators – specifically what and how are they being measured - they need to know whether they have met the expectations of their job.
Areas where they performed well and either met expectations or exceeded them. Areas for improvement – provide all feedback with balanced and constructive criticism.
Support and suggestions for improvement
Discuss their career goals – help them create a plan to achieve these.Put it in writing – keeping a record of the conversation allow you and the employee to revisit it later for check-ins as well as for disciplinary or promotion purposes
Follow up often – as the employer, you must shape the employee experience by checking in regularly, asking the right questions, and following up on your conversations and agreements.
Checking in with them when you can. This can be done either through one-on-one meetings or when they successfully meet their goals or targets. This way, you are holding them accountable for their performance and engaging with them constantly.
Salary or merit reviews are generally done on the anniversary of the employee starting in the role. You may choose to include this in the performance review process – this varies business to business.
Best of Luck,
Merrill