Does your business utilize an annual performance review process? Has it changed much over the last five or ten years? Recently new types of performance reviews have evolved, and are being met with success in today’s new business world. These require that reviews be done not only for raises, promotions and bonuses, but also to support employee growth and development. Let’s discuss some of the methods currently used by many companies.
The Rating Scale method is probably the most common review type. Using this method, a supervisor rates an employee on a numeric scale for a defined set of behaviors, traits, competencies and completed projects. This method is popular because of its simplicity and functionality, but it only works well if both managers and employees share the same understanding of each point on the scale.
The Management by Objectives (MBO) review method measures the employee’s accomplishments against a clearly established set of objectives. Managers and employees begin each year working together by listing these objectives; the end of year appraisal simply compares each goal with its final outcome. This method is simple, clear and empowers the employees in the goal-setting process, but it disregards non goal-related and success metrics.
The 360 Degree Feedback review method is a new kind of performance review. It incorporates data from peers, supervisors and even outside parties like customers and suppliers. This broad feedback can provide a multi-dimensional picture of performance that can cancel the influence of bias. The goal is to paint an accurate picture of the employee’s strengths and weaknesses. Gathering feedback from multiple sources is a great way to ensure that employees are treated fairly and accurately.
No matter which type of performance evaluation tool is used, remember the goal is to foster communication between managers and employees. Here are 10 steps to make your performance reviews more productive:
Lanier Upshaw understands how important your employees are for the success of your business. Contact us to learn more how we can help your business.