As the year draws to a close, it’s important to conduct effective performance reviews.
Unfortunately, research shows that many of these reviews don’t have their desired outcomes.
Below are three tips for managers to conduct successful performance reviews.
Why do Performance Reviews Fall Short?
Some of the reasons employees might respond negatively to performance reviews include:
- Perceived unfairness: If employees feel they aren’t being given equal consideration as other colleagues, or that their review doesn’t accurately reflect their work, they might lead to dissatisfaction or demotivation.
- Surprising feedback: Team members need to maintain awareness of where they stand with management and with their goals. If feedback during a performance review catches the employee completely off-guard, they might struggle with engagement.
- Lack of follow-up: If a performance review is an isolated annual event without any follow-up actions, its impact will be significantly minimized.
If you want to have a successful performance review, you’ll want to make sure you’re taking the following steps.
3 Ways to Improve Performance Reviews
1. Prioritize Coaching and Candor Throughout the Year
A performance review is an excellent time to review where the employee stands on their goals and objectives. It can also highlight areas of improvement.
However, your team members shouldn’t be caught completely off-guard by the review.
This is why, as Harvard Business Review puts it, performance reviews should be part of an ongoing feedback process, rather than an isolated event.
McKinsey’s research also shows that when managers effectively coach their employees throughout the year, 74% of employees say they’re satisfied with their performance management systems—compared to 15% of employees whose managers aren’t good coaches.
2. Request Responses from Team Members
According to HBR, performance reviews can be impacted by the Rashomon effect—where two individuals observe the same thing but come away with different interpretations.
This means that dialogue is critical to performance reviews because it’s possible that you and your employee have different understandings of performance or a result.
Consider asking questions such as “Do you agree?” or “Does this align with your understanding?”
During this process, it’s also vital to listen to their answers with an open mind because their response might reveal an underlying issue or an area in which you can better support them.
To maximize the value of this step and encourage ownership and dialogue rather than defensiveness, consider applying the following strategies:
- Convey a positive intent: Before the performance review, make sure to clearly express that the purpose is growth and development rather than criticism or punishment.
- Be specific and focus on observable behaviors: Avoid making generalizations or subjective judgments. For instance, instead of saying “Your communication needs improvement,” provide a concrete example like, “During our last team meeting, you interrupted your colleagues several times, which made it difficult for them to share their ideas.”
- Focus on solutions: If there are issues that must be addressed, make sure the focus is on helping your team members find workable solutions.
- Conduct regular check-ins: Regularly engaging in open communication with team members is a key component of psychological safety and a great way to encourage ownership and dialogue while preventing defensiveness.
It’s important to consider how you currently structure your performance reviews. Do you provide opportunities for your team members to engage in open dialogue? If not,
3. Align Performance With Company Goals
Performance reviews are an excellent opportunity to enhance your team member’s sense of purpose.
Review how your employee’s performance has supported the company’s overall mission and business priorities.
According to McKinsey, this practice not only improves an employee’s perception of the company’s performance management but also increases the perceived fairness of the system.
Debrief Your Year With Your Team
In addition to individual performance reviews, the end of the year is a great time to review the year with your team.
According to former U.S. Air Force Fighter Weapons School Instructor and Teamraderie experience host Robert “Cujo” Teschner, it’s important to have “debriefs” with your team.
According to Cujo’s book, “Debrief to Win,” an effective debrief can be done using the RAPTOR framework:
- Reconstruct what happened: Leverage available data and multiple perspectives to obtain the most accurate understanding
- Agree on fundamental questions and focus points: Determine if you achieved the stated objectives.
- Present the driving factors: Explore possible answers to your questions and consider relevant perspectives.
- Thoroughly agree on root causes: Obtain a consensus among team members on what caused the outcomes—either positive or negative.
- Organize a plan for improving or maintaining success: Did your team hit your company goals? If so, discuss how to continue hitting—and exceeding—goals. If not, determine what must happen to hit your goals in the future.
- Rapidly improve by memorialization: Document any conclusions of your debrief for future reference.
Leveraging this framework for a year-end review with your team can be an effective way to promote ownership and improve as a team.
Want to learn more about how to leverage debriefs effectively in your organization? In Teamraderie’s team experience, Debrief to Win, Cujo joins your team live in a 55-minute workshop to help your team master the art of planning, adapting, and debriefing.
