How Critical is it to Review Employee Performance? Part One

How critical is it to review employee performance? Part One

This week, guest writer Sonya Law walks us through the critical importance of the employee performance review in part one of a series.

It is very critical: you need alignment between the people and the work that needs to be done to achieve the strategy.  Your people are your number one strategic competitive advantage. When businesses can unlock potential of all people it has a multiplier affect to the bottom line.

Its very important to have a business whose people are performing and heading in the same direction.  It’s an obvious thing you can’t get anything done without the engagement of your people.

There are a number of factors for that too, which exist in today’s organisations:

  1. No clear direction: Often what happens is there is not clear direction from leaders.
  2. Feedback loop: There’s not always a feedback loop between the manager and employee on a regular and consistent basis.
  3. Celebrate achievements: Also, one of the things organisations don’t do very well is celebrate their achievements.
  4. Value your people: And the valuable work that employees do over the last 6 to 12 months is not recognised and highlighted in their mid-year or end of year review (EOY) or at all.
  5. Re-engage: Recommitting your people to the purpose and the strategy and their role in it is not something that is commonly practiced and should be.

As leaders, we get caught up in operations, in our own role, blinkers on, it’s very easy to fall into that trap especially during the pandemic, where for a lot of leaders it’s about keeping your head above water.  It is the role of management to let people know what their contribution is and what their value is to the team and the organisation.  Most people join organisations because they want to be part of something bigger than themselves.

So, it’s a really good opportunity to acknowledge those things as well as ASK your employees at the End Of Year (EOY) review:

  1. What are the roadblocks you are experiencing in your job?
  2. What are their ideas in terms of efficiencies and continuous improvement?
  3. Ideas on how they could do their job better? Innovation?
  4. Ask them if they would like to do more training, learn something new, that is going to help them to do a better job?
  5. Open up a feedback loop: Say to the person how can I as a manager, help you to perform in your job?
  6. Ask them are they open to opportunities for challenge and stretch goals?

It’s good to, in that conversation talk about challenges and stretch goals.  What I am hearing from a lot of people lately that they are in a job, where they are somewhat happy, well paid, and it’s kind of easy and they are not really being challenged or stretched.  So, they actually want to leave their organisation for an organisation that challenges and stretches them.

This is the responsibility of the manager to unleash that unrealized potential or capacity within the organisation and when we don’t capture potential it really hits the bottom line.  In terms of productivity and efficiency, and revenue per headcount, so it is the role of the manager to always be thinking about how can I unlock the potential of my people. It starts and ends with potential.

Bias is a block to unleashing the Potential of employees?

As leaders, we experience bias in our decision making all the time, we put people in boxes because it enables us to make sense of the world and provides certainty something that still plagues us during the pandemic.  Or we are too lazy to think about what that person’s potential is within the organisation.  Managers who are disengaged have a detrimental impact on the overall performance and wellbeing of their team and organisation.

What can we do as leaders to overcome this bias?

To be aware of how limiting it is when we put people in a box, when we sit down at EOY review we need to appreciate that they are not the same person as they were when they started in the role and with the company.

Important preparation tips for Managers:

  1. Awareness of our own biases
  2. Look at your employees with fresh eyes
  3. Go in with the mindset like you are interviewing them for the first time
  4. Don’t assume, that their past performance is a reliable indicator of future performance.

We need to go into the EOY discussion with the employee as if we don’t know them because, our biases, and our assumptions, and experiences overpower where that person is.

This practice will ensure a successful EOY review on both sides.  With the knowledge that people grow and change as people within an organisation.  Consciously or not, we are putting people into boxes that underutilizes our Human Resources.  By holding a space for employees, it enables you to assess their performance.

Exert from a Candid Conversation with Ron Slee:

(www.learningwithoutscars.com Podcast button)

Ron: The EOY and mid-year review is all about the employee, its not about the manager, and many times, most times, I don’t believe the manager knows how to do it?

Sonya: This is true.  Some managers don’t want to do it, they find it intimidating.

Ron: Have you seen that?

Sonya: Yes, they just want it over and done with and tick the box, and send to HR. Often it comes back with limited feedback or comments. Yes, they talk with the employee and tick it off and go back to their job.  They are often uncomfortable with having conversations about barriers they might be experiencing, professional and personal development questions, conflict in workplace and delivering feedback.  Those skills are important but a lot of managers don’t like to do it, or want to do it.

Ron: Why?

Sonya: It opens them up, they won’t always have the answers.

Ron: We have to be vulnerable to each other.  If I asked what I could do to improve my relationship with you as a worker of mine, that employee has to trust me explicitly, implicitly if they are going to tell me the truth.  I don’t know that, that kind of trust exists? I get a paycheck, I don’t want to do anything that is going to jeopardize that paycheck, I need the paycheck.  The employee is coming to the discussion nervously and anxiously, and the boss thinking what a pain in the neck.  I am busy don’t they know that. We’re on the wrong foot from the start?

Sonya: True, there is also a power disparity which makes it difficult, in the workplace, often if face to face in the bosses’ office, manager title on the door, its intimidating.  The employee just wants to get home, take a paycheck and goes into survival mode, which is quite common.   Fear kicks in and fight or flight depending on the degree of trust.

In my next article we will explore this more on how to have a successful End Of Year (EOY) review in

Part Two: How to build trust and get the most out of the End Of Year (EOY) review. 

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