3 tips for improving your performance review process

Post by
Max Korpinen
3 tips for improving your performance review process

The traditional yearly performance appraisal is ‘out’, but what is ‘in’? All kinds of modern frameworks and performance management tools are available, but employees, as well as managers, still commonly have a negative view of performance review processes.

When deciding on a framework or a tool for driving performance reviews, here are three things to keep in mind.

1. Make sure your employees agree with your process

One of the keys is to make sure that your employees like the process and agree with it. Research shows that the more satisfied employees are with the process, the more likely they are to have the motivation to actually improve their performance as a result.

2. Performance reviews need to be fair

Another important notion is that a good performance review process has to be perceived fair. If it is, the employees that participate are more likely to engage in the process more, thus improving the positive outcomes for the organization.

3. The process itself needs to bring value for everyone

The third one is the trickiest. In order for performance reviews to be truly effective, employees need to see the review process itself as something of value.

This means that it is not enough that the employees just like the process and see it as fair, but the process needs to bring something valuable to everyone participating. Here are some ideas on how to increase the intrinsic value of the process:

  • Use performance reviews as a developmental tool; make sure that the point of the process is for employees to grow and improve their skills instead of being ‘managed’
  • Create the performance standards together with your employees - when you do this, it increases the perceived fairness of the process as well
  • Support the relationship that employees have with their managers - the better the relationship, the more both parties will engage in the process

If your performance review process brings value to the participants, and when it is liked and seen as fair, you are probably doing better than 90% of organizations.

With the Talbit tool, we want to create a performance management framework that truly brings value to everyone. Make sure to reach out to us if you are in need of an update for your performance reviews or need fresh ideas on how to develop your talent.

References:

Islami, X., Mulolli, E., & Mustafa, N. (2018). Using Management by Objectives as a performance appraisal tool for employee satisfaction. Future Business Journal, 4(1), 94-108.

Kim, T., & Holzer, M. (2016). Public employees and performance appraisal: A study of antecedents to employees’ perception of the process. Review of Public Personnel Administration, 36(1), 31-56.