Performance reviews play a key role in helping to guide employees’ performance, compensation and professional development. When you think about it, effective performance reviews should result in helping you to achieve your company’s goals by aligning your employees’ development and growth with that of your business. Employees are generally more productive and motivated when they understand how they are contributing to your business. Finally, the performance review process should also enhance communications between the employee and his or her manager.
- Be sure that your review process and systems for measurement of performance treat employees equitably and avoid any statements or actions that can be construed as discriminatory at local, state, and federal levels. If you have any questions regarding your performance review program and discrimination issues, contact an employment law attorney who knows your state laws.
- Be direct, factual, and detail-oriented--a performance review can provide documentation for your company in case a termination is necessary. If you provide a very positive review of an employee without detailing the problems, you now have documentation that does not support a decision to terminate. If a lawsuit surrounding the termination occurs, it will be more difficult to defend your company’s actions.
Performance Review Benefits
The following is a brief listing of benefits associated with the review process:
- Enables you to confirm that employees have the appropriate skills, attitude and knowledge that are necessary to achieve your business objectives.
- Identifies possible succession-planning opportunities.
- Provides a forum for positive feedback to increase productivity and commitment.
- Creates an opportunity for personnel to raise issues and concerns, and express their point of view about their work.
- Identifies potential under-performance issues early enough to discuss and resolve.
- May reduce absenteeism, as regular communication and feedback with staff is enhanced by the performance review process.