Do I have to have performance reviews with my employees?
YES! Everyone wants to know how they’re doing, but here’s a new idea that has worked well for me and my clients…
Performance reviews are HORRIBLE! Neither the manager nor the employee likes to do them – or likes to be “reviewed!” BUT we all want to know if we’re doing a good job – what we do well and what we could do better.
Here’s an approach that has worked well for me and some of my clients:
1. Work together on the team’s plan for each year. Let your team tell you what they want to accomplish. Set goals and milestones and rewards that you all agree to. This may take a couple of planning meetings. Ask everyone for recommendations and buy-in. What are their concerns?
2. Then ask what resources they need from you to make this happen. Discuss trade-offs and priorities.
3. Agree to meet on a regular basis to check in – to assess your progress. My recommendation is at least quarterly – for new employees and those struggling, monthly. Are you “on plan”? What decisions or goals need to be tweaked?
This collaborative effort has shown to work well as everyone now has “buy in” and has agreed to work on these common goals rather than having the manager or business owner dictate terms. This is especially beneficial with the younger generations as they want to have a voice.
However, the ground rules must be set and agreed upon first. It must be understood that the goals are set to increase profitability to generate additional profit – which will then be shared by the team. No promises, just agreement.
Depending how successful the company is, pass along a share of those profits to keep your team motivated and engaged!
If you want help with this process or facilitating the discussion, I’m happy to help.
Contact me and book a time. Consider joining a BOMBA Mastermind where you will learn all the systems to scaling your business profitably and successfully.