Performance reviews are often criticised for being old-fashioned. But they’re still very important, especially for smaller companies. 

Appraisals can hugely improve employees’ performance and productivity, helping them feel that their hard work is being acknowledged, and encouraging them to strive for higher levels of achievement.    

Here are 5 reasons why employees need performance reviews, even in today’s fast-paced business world.  

  

They are versatile

A performance review can be whatever you want it to be, as long as it works for your business and employees. Formal annual reviews are now a thing of the past. They’re time-consuming and soul-crushing, because they involve traditional review techniques that try to pull together a year’s worth of performance data. Instead, most companies opt for weekly or monthly one-to-one chats.

Some companies even use apps or software, where employees can leave feedback periodically at their own pace, without the pressure of always having to face a superior. Don’t be afraid to experiment with different types of performance reviews, until you find the format which gives you the best results. 

Internal communication is improved

Successful businesses engage in productive discussions and prioritise communication. Since they can be quite similar to brainstorming sessions, performance reviews tend to improve team cohesion, facilitating conversations between employees and their managers. When using reviews to ensure that everyone is on the same page, your team members will feel more secure and valued.

Problems can be better addressed

Managers are too busy in their day-to-day work to understand an employee’s frame of mind. Performance reviews are a great opportunity to tackle any issues an employee is otherwise afraid to bring up or discuss.

You can also use reviews to assess your employees’ weaknesses, and identify where they might require additional training and support. Letting your team know you are concerned about their development and wellbeing will boost their determination to work harder.

Hitting targets is the focus

Modern performance reviews are very goal-oriented, aiming at getting employees excited about how their work will have a long-lasting impact on the company’s success. It’s all about showing them the bigger picture and your overall vision for the company, in a way which encourages, rather than forces them, to climb on board. 

Using reviews to set achievable, accurate targets - based on changing market conditions and the current state of the company - empowers employees to feel more confident when they hit those targets. 

Employees feel more valued

And there we have it, our last agency news for 2017. We celebrated our best work, our wheely works person of the month won a boat party and everyone walked away with a present from Kris Kringle! 🎄

A post shared by The Works (@worksagency) on Dec 17, 2017 at 5:28pm PST

For employees to feel fully satisfied and to maximise their potential, they need to feel valued. A proper review should focus on helping employees improve, rather than on holding them accountable. All employees deserve constructive feedback, combined with praise and recognition where due. No matter how large your company is, every employee should receive constant feedback. Informal but consistent performance reviews perfectly fill this gap.

Conducting effective performance reviews is not an easy task. Contact one of the HR Training Institutes listed on Yellow if you need to invest in good internal management.

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