For many companies, the annual performance review is the only time managers and their employees have meaningful conversations about what is working well and what isn’t. This creates fear and dread for the employee (How will I be rated? Will I get a raise?) and a burden for the manager (How do I evaluate 12 months of work? When will I find time to complete this form?).
Performance management should be a process, not just an event. In support of the annual evaluation there should be mini-reviews throughout the year. This helps both employees and managers track accomplishments and address areas for improvement in a more timely way. There should be “no surprises” during the annual review.
If you haven’t been managing performance throughout the year, Q4 is an excellent time to schedule a mini-review in preparation for formal reviews early next year. Revisit the employee goals set earlier this year and have an honest, interactive conversation with your employees about progress, challenges, improvement needed. Think of these reviews as development opportunities vs. “report cards.” Consider both the employee’s strengths and how to further develop them, and areas where the employee needs to improve in his or her current role, or to advance to the next level.
One area that is absolutely essential to address immediately is problem performance. Ignoring it will not make it go away, and left unchecked it can damage team morale, customer relationships and even the overall business. Here are some tips for dealing with problem performance.
Set expectations. Be sure each and every employee understands what is expected of them in their role and as a member of the team and larger organization.
Identify issues quickly. Be present with your employees. Have regular meetings and one-on-ones to learn challenges and issues. Seek to understand the root cause – training, capability, unwillingness?
Document. Performance issues may ultimately lead to termination. Avoid legal risk by thoroughly documenting and time stamping observed behaviors and specific examples of where the employee is not meeting expectations.
Address the issue. Discuss the problem with your employee. They may not realize it’s a problem until you tell them. Revisit expectations and consequences. Keep to the facts: Situation (what happened) Impact (negative consequences of situation) Expectation (what is expected by when). Treat this as a teachable moment with the goal being performance improvement.
Follow up. Constructive discipline begins with a verbal warning and progresses to a written warning if there is no improvement. Be very specific about expectations and timeline. Document, document, document.
If you need help developing a performance management process, please contact me.