Quantum Workplace offers ultimate flexibility in designing performance reviews. This article will help you understand what makes an effective performance review.
In this article:
- Overview
- Frequency of Discussions
- Review Ratings: To Use or Not to Use?
- What to Include in a Performance Review Template
Overview
Quantum Workplace offers ultimate flexibility in designing performance reviews, enabling organizations to create reviews that best suit their workforce. However, having too many options can sometimes lead to indecision.
This article will help you understand what makes an effective performance review.
Frequency of Discussions
Perceptions of performance review effectiveness are higher when reviews are done more frequently, rather than annually. This results in 11% more engagement, 8% more favorable views regarding fairness, and a 5% greater likelihood of employees saying their performance has improved.
When outlining the cadence of your performance program, consider the speed at which your business typically operates. If yours is an organization with high rates of change, it is best to engage in more frequent performance conversations. This ensures leaders and employees stay well-aligned.
Quantum Workplace research indicates that most employees prefer to discuss their performance with their managers at least monthly. This doesn’t necessarily mean a formal review is warranted each month, but employees and managers are aligning on performance and priorities monthly.
Performance ratings are often captured on a quarterly, semi-annual, or annual basis.
Review Ratings: To Use or Not to Use?
There has been much discussion about ratings in recent years. Are they useful and effective? Do they motivate? This largely depends on your organization and industry. If your organization chooses to use ratings, it is imperative that they help the employee understand their performance as it relates to expectations.
One way to do this is by converting a numerical score into a descriptive phrase or word, as depicted below:
In the past [timeframe of evaluation], how does [employee]’s performance compare to expectations of the role?
- Does Not Meet
- Partially Meets
- Fully Meets
- Partially Exceeds
- Consistently Exceeds
While it’s important to use a rating scale that’s easy to understand and provides enough differentiation, no scale can fully substitute the need for training and calibration. It’s essential that managers and employees understand their organization’s philosophy related to employee performance, know what ratings are used for or influence, and how to effectively rate performance and minimize rater bias.
What to Include in a Performance Review Template
A well-thought out performance review template can enable managers to have effective conversations that drive engagement and improve performance.
According to a Quantum Workplace research study, the following elements in a performance review help employees feel that the review was effective and that their performance improved:
- Review of Performance Data
- Recognition for their Work
- Discussion of Career Growth
- Actionable Advice from their Manager
This serves as a solid outline for what should be included in performance review discussions.
Review of Performance Data
Including performance data increases the fairness and objectivity of the review.
While competencies can be helpful, they can sometimes allow room for bias. Incorporate data into your review conversation by pulling in goals, feedback, and other metrics such as KPIs specific to their role for review. When including competencies, make sure to add examples of the employee displaying those behaviors.
Recognition for their Work
Recognition is a form of positive feedback that helps employees understand what is valued by the organization and in their work.
Each discussion point provides an opportunity to recognize employees for their contributions. Doing so helps them understand how their work impacts the success of the organization.
Recognition as it relates to performance data is a great place to start. For example, as performance data is reviewed, managers can note areas to celebrate and opportunities for development. Also make sure managers are aware of recognition in-tool by reviewing the employee’s Snapshot.
Discussion of Career Growth
Good performance management should be forward-focused.
Help employees get excited about what is next by discussing opportunities for growth and development. Consider asking a few questions to get the conversation started:
- What are some career milestones or long-term goals you hope to achieve in the next 1-3 years?
- What specific skills, experiences, or knowledge do you need to develop in the next 1-2 quarters to work toward your goals?
- How can [manager name] best support you in developing in these areas?
Keep in mind that this conversation may happen or continue past the initial review conversation. Help employees prepare for the conversation by letting them know ahead of time that this discussion will be had.
Actionable Advice from their Manager
Managers should be prepared to help their employees understand how to use the information and feedback provided in the review.
Managers and employees should work together to outline goals that support growth in the areas discussed. Agree on a plan to revisit these goals, checking for progress and potential roadblocks. Goals help move the conversation to action, elevate the visibility of progress, and identify when help is needed.