The basics
Performance reviews should be carried out formally, using a performance review document that addresses the following matters:
- how the employee applies herself/himself to the tasks allotted;
- the effectiveness of the person’s work - whether he/she has met specific targets in such areas as budgets or quality;
- how the employee presents at the workplace - whether he/she arrives on time and whether there are any other issues in relation to presentation;
- how the employee comes across to the employer;
- how the employee interacts with co-workers;
- how the employee assists the employer in developing the employer’s business.
Employers should limit the number of categories in which they review performance. Having more than 5 categories tends to fragment the results and confuse people reading the report later. 10 categories would be considered a maximum.
Ratings
There are a number of ways in which employers can rate an employee’s performance. Some employers simply rate people by grading their performance as Very Good, Good, Fair and Poor.
However, these descriptive measures don’t give employees a great deal of feedback as to how the employer feels about either them or their performance.
Usually it’s better to use the review document as a base and apply ratings on a scale – say out of 5 or 10.
Deciding on a rating system is essential before anybody comes in.
On the day
The method for conducting a performance review includes the following:
- the employee is presented with the prepared form identifying the categories in which the performance will be reviewed;
- during the meeting, the employer writes down on the form any performance issues and rates the employee;
- the employer gives the employee a chance to respond to both the ratings and any comments about the person’s performance either in the meeting or within 24 hours.
If necessary, there should be a follow up meeting to discuss the employee’s responses and agree on a final rating.
Outcomes
Performance reviews are important because an employee’s chance of having a salary review or obtaining a bonus usually depends on them. See Rewarding Good Performance.
Poor ratings can result in the person’s salary not being reviewed at all.
If an employee is rated ‘poor’ in 3 categories of a 5-category review or say 5 categories of a 10-category review, there are grounds for moving into Managing Poor Performance.
This cannot be done at the same time as the routine review because performance management meetings follow a different set of procedures.
