Performance Reviews – Everything you need to know as an employer

Performance Reviews

A performance review is a good opportunity for you as a manager to identify when your employees feel strongest, happiest and perform best. Thus, performance reviews are not only beneficial for the individual employee, it is also a gain for the company.

In this article, we will make you more aware of what a performance review entails and how you can prepare for your next employee development interview.

What are performance reviews?

A performance review is a dialogue between the employer and the employee that deals with the employee's job satisfaction, job well being and development. The performance reviews will primarily deal with topics such as the employee's motivation, work tasks and personal development.

Performance reviews are not a requirement in private workplaces. However, it can be a good idea to hold employee development interviews, as they provide value for both the employer and the employee. Employee development interviews, on the other hand, are mandatory in all state workplaces. Here, employees and managers must have at least one MUS interview per year.

What are the advantages of performance reviews?

Performance reviews talks are not just for the benefit of the employee, it also has a number of advantages for the company. Employee development interviews give the employee room to give feedback to the employer, e.g. regarding well being and development. In this way, the management can gain an understanding of how their employees thrive and which elements need to be improved in the workplace to promote a healthy, productive working environment. A strong working environment, for example, contributes to increased motivation, which can have a beneficial effect on productivity and ultimately turnover.

In addition, it is also in the interest of the organisation that their employees improve their skills, as this also has a positive impact on productivity and the competitiveness of the workplace.

How often should a performance review be held?

Most companies hold performance reviews once a year. However, this is also one of the points of criticism that employee development interviews are exposed to, as critics emphasise that development oriented conversations  should be part of daily management,   and not saved or an annual meeting.

This does not mean that performance reviews are a waste of time, or that you should hold employee development interviews with a higher frequency than once a year. On the other hand, it refers to the fact that performance reviews cannot stand alone as one annual meeting where the employee's performance and well being are discussed.

If you regularly focus on the development and well being of your employees, e.g. via short monthly one on one conversations and walk and talks, you have a reasonable starting point for gathering up the annual performance review  and in this connection prepare a thorough action plan for the future development.

You must also be aware that your employees have different needs and preferences. Perhaps you have employees who are very autonomous and need minimal feedback and planning. This group of employees probably does not need monthly follow ups.

Other employees have a greater need for fixed structure and will value regular 1:1 meetings. Therefore, you can advantageously consider adapting the amount of development interviews to the individual employee.

 

How do you prepare for a performance review?

Here is some advice on how you can prepare for your next performance review:

• Decide what the focal point should be: Should the interview deal with the employee's general well being, performance or development? It is important that you touch on all the aforementioned topics, but decide in advance what is most important to you as a manager and the department as a whole
• Give your employee feedback: You probably have a good knowledge of the individual employee's tasks and results. In this way, you can use time before the interview to prepare feedback on how your employee can improve their skills further
• Remember to listen: the performance review is about the individual employee, which is why it is essential that you give the employee space to express their experiences and attitudes. It is a unique opportunity for you to receive feedback from your employees
• Make sure to secure important feedback: The best feedback is typically the feedback your employee gives on their own. These are the topics that matter most to the individual. However, it is not certain that the employee will discuss  all points. Here it is your task to ensure that you get what you need. On this occasion, you can ask supplementary questions, e.g. whether the employee finds the work tasks to be motivating and challenging

Finally, it is worth mentioning that it is a good idea to draw up an action plan that includes the various topics you have discussed during the performance review.

See also how you can save time and money by: