Performance management reviews are an essential component of employee development and organizational success. In Fact, a SHRM study found that effective performance reviews can increase employee performance by up to 20%. Research from The Corporate Executive Board (CEB) found that organizations that effectively manage performance reviews see a 14.9% lower turnover rate.
These formal assessments evaluate an employee’s job performance, provide feedback and set goals for future performance. Their primary purpose is to align individual performance with the broader organizational goals, ensure that employees receive constructive feedback, and identify opportunities for their development.
However, the traditional approach is often time-consuming and prone to bias and subjectivity. There is often ambiguity in feedback leading to confusion, resistance to receiving or acting on feedback, and a lack of follow-up.
A Deloitte survey found that 58% of executives questioned believe their current performance management approaches drive neither employee engagement nor high performance.
6 Key Considerations For Performance Reviews
In this article, we’ll look at the steps you can take as a manager to mitigate bias and develop an efficient process for performance management reviews, whether you’re writing assessments for your subordinates or completing a self-assessment.
#1 - Overcoming Recency Bias
Recency bias is the tendency to give more weight to recent events or behaviors, which can happen to all of us.
I worked with a client who was absolutely knocking it out of the park. They had even mentioned her work in the last two town hall meetings at her organization. Because of her stellar track record, he was given a new team and a new remit.
Then, the market took a turn for the worse. And suddenly, all the boss wanted to talk about was how the new team wasn’t performing. He was paying attention to and giving more weight to the most recent events.
It’s impossible to always be at the top of your game. Sometimes, things happen that are beyond your control. So, what can you do if you feel like you’ve had an unfair review?
First, when you step into a new role or take over a new team, things will shift and change. It’s necessary to have a conversation around expectations so you’re clear on how you’ll be evaluated.
If you receive a negative review, it’s important not to get defensive (this is probably the hardest step). Ask for it in writing and give yourself some time to process what was said and how you felt about it.
Write your own review or rebuttal and ask for a chance to correct the record because performance reviews are often tied to promotions and bonuses.
Fortunately, my client was able to have a skip-level meeting, during which it was agreed that the review would be amended to acknowledge extenuating circumstances and earlier success.
If we want to avoid recency bias, the solution is to keep notes throughout the year so that you’ll be able to see what happened without relying on your memory.
It’s also important to have ongoing feedback and performance discussions throughout the year rather than relying solely on annual reviews. There should be no surprises or new information in an annual performance review.
#2 - Mastering Self-Assessments
Self-assessments give employees an opportunity to reflect on their achievements, areas for improvement, and career goals.
To prepare for your self-assessment, we suggest keeping a performance journal throughout the year and noting down things like accomplishments, feedback, and progress toward your goals.
Here’s a format you can use to write your next self-assessment. You can also mirror this format when writing reviews for your employees:
Header | SELF-ASSESSMENT FORMAT |
|---|---|
Start Here... | Write about your leadership (skills, style, and approach). |
Then, Answer These Questions... | What did you do to hire, engage, retain, develop, and promote talent on your team (high-level)? What structures and processes did you use (high-level)? What pieces of work did you yourself do and what did your team do? How did you partner, collaborate, and influence across and up the organization? How did you contribute to others’ success? How did you go above and beyond to uphold the company’s mission and values? What were your goals? And, how did you measure your progress? What are your other accomplishments (think awards, rewards, accolades, and quotes)? Where did you miss the mark? (Be accountable and responsible for your part. Note any extenuating circumstances. And note down your plan for recovery.) What are your strengths and gifts? What are your opportunities - and what do you like to focus on? |
End With... | Write about your career aspirations. |
You could create a Trello board (or something similar) with each of these sections as headers and add notes to them throughout the year.
Remember to take a proactive approach throughout the year so that when it comes time to write your self-assessment, you have something to talk about.
I worked with a client who had been with her organization for a long time. When a newer boss took over, he asked her to take care of events (such as organizing team lunches) while giving others more substantial assignments.
She spoke to him about it and requested a stretch assignment, but he said he didn’t have anything for her. Not to be dissuaded, she went to her peers and got two assignments where she could grow and succeed. In the end, her boss gave her a glowing review and identified her as his successor.
#3 - Managing The Performance Review Process
Writing performance reviews for employees can be incredibly time-consuming, but there are a few practices you can adopt to make the process more efficient and painless. Effective performance management reviews should start with SMART goals, provide constructive feedback that is specific, focused on behaviors and outcomes, and aimed at helping the individual improve and create personalized development plans for each manager to ensure they have a clear path for their growth and development within the organization.
I worked with a manager who had 27 people on her team, and she was doing all the reviews. She tried to write each one thoroughly and beautifully and made sure she read through the last five years of reviews for each team member. As a result, she got way behind.
We suggest creating a file for each team member and making notes throughout the year (this also prevents recency bias). Create a similar structure or format for each so you’re not reinventing the wheel.
In my client’s case, she had four team leads that she could use to help her gather notes. Monthly or quarterly check-ins with the team leads would ensure that information is being compiled throughout the year.
#4 - Providing Constructive Feedback
According to a survey by HBR 94% of employees prefer to receive feedback in real-time rather than waiting for an annual review. This is especially important for negative feedback. Employees need a chance to course correct and show they can improve.
Performance reviews can seriously impact an individual’s life and career, affecting promotions, bonuses, and opportunities. When you give negative feedback in real-time, and the employee has the opportunity to change their behavior, then when you write the performance management review, you can focus on the progress they’ve made and the improvement you’ve noticed.
The trick to writing negative feedback is to give it in a way that they can hear and be inspired to make a change. According to a report by Gallup, only 21% of employees strongly agree that their performance is managed in a way that motivates them to do outstanding work.
Ensure your feedback is actionable and you provide opportunities to gain the skills they lack.
AMANDA KATHLEEN ZINKE, MBA, MSOD, PCC
CEO & FOUNDER OF LEAD BEE LEADERSHIP DEVELOPMENT
#5 - Managing Reviews For A New Team
In an ideal world, the outgoing leader would write reviews before they move on to a new role or leave the company.
If they stay in the company, we suggest a jointly written review. If they leave and they don’t have notes to leave you - you might have to get creative and seek input from people who interact with them regularly. It’s important to speak to several people for a clearer, more honest assessment.
Finally, two-way communication during performance reviews should be encouraged, allowing employees to share their perspectives and insights.
#6 - Maximizing Impact In Performance Conversations
A balanced performance management review will include an overview of the employee’s strengths and constructive feedback on areas for growth. We suggest spending more time focusing on where that employee shines.
A study from the Corporate Leadership Council (CLC) found companies that emphasize strengths in performance reviews see a 36.4% improvement in performance. They also found that when the focus is on the employee’s weaknesses, it can lead to a 26.8% decline in performance.
If the review is overly critical, it can be demotivating, so it’s important to present constructive feedback so the employee can feel empowered to take action.
Developing an effective and efficient process for performance management reviews requires a proactive approach of gathering information throughout the year, ongoing feedback, and creating a structure and process that allows you to communicate clearly and thoughtfully without being time-consuming.
When done well, performance reviews contribute to a culture of continuous improvement, employee development, accountability, and, ultimately, organizational success. Here at Lead Bee, we help organizations design and implement effective performance management processes as part of our consulting services, enabling you to reap these valuable benefits.
If you’d love our support in communicating the changes, managing the process, or conducting training for the management staff so that everyone is motivated to follow through, please reach out to us.
