Abc guide performance reviews

ABC GUIDE Performance Reviews Conversations that develop employees and the organization Performance reviews is a recurring conversation between the manager and employee. These are structured conversations focusing on the development of the individual employee and of the organization as a whole. Other names for review are performance appraisals, development conversations, or career development conversations.

The fact that there are many expressions that denote the same phenomenon is based, among other things, on the differences in values, attitudes and approaches related to these reviews.

More than an evaluation of performance Companies today use reviews to evaluate performance, for job improvement, to identify training needs, and to motivate staff.

The goal is to make the development dialogue an integral part and an ongoing process in the organization.

Furthermore, the dialogue gives both parties a chance to talk about the work situation, mutual demands and expectations from a holistic perspective, which facilitates a continued dialogue about expectations and objectives in the day-to-day work.

The tying together of individual and organizational goals The review gives the manager an opportunity to, in a relaxed setting, discuss individually with each employee. Both to sum up the previous period and to form plans and guidelines for the following period. The organizational objectives can be conveyed during the review and subsequently translated into specific targets for the employee. These reviews are increasingly a two-way discussion where the employee gets a chance to express his or her professional goals. In this way the goals that are set for the next period can be formulated in a way that maximizes each person’s motivation and sense of development.

Performance reviews – a definition The performance review is a planned and structured discussion between managers and employees conducted periodically. It is characterized by both parties preparing for the review and allocating enough time to discuss predetermined areas. The manager who has the most insight in or influence on the employee’s daily work is normally best suited to undertake the review. This is usually the immediate superior. The number of reviews that a manager undertakes to implement should not exceed 8-10, otherwise there is a risk of a drop in quality. Reviews are normally conducted one to two times per year. The review is documented, i.e. one of the participants takes notes or fills out a pre-printed form.

From the employer’s perspective, the review is a strategic tool which, used correctly, helps the organization to develop and eventually reach the position that the long-term strategic plans describe. Another result is that employees who are permitted to be included in the planning of organizational and individual goals exhibit greater satisfaction with their work and their professional role. This in turn leads to higher motivation, improved work results and a greater understanding of other employees’ work.

Employees are given the opportunity to realize that they are involved in and responsible for their own development.

The most common objectives of performance reviews include: • To develop the organization by encouraging and developing employees both professionally and on a personal level.

• To regularly evaluate how well the organizational and individual objectives match and support each other.

• To inform and gain support from employees for organizational goals.

• To evaluate the performance and contribution of each employee to decide levels of compensation and pay.

• To improve feedback within the organization.

• To enable employees to use their full potential by adjusting work assignments and development activities.

• To improve the relationship and dialogue between employees and managers.

• To improve the overall working climate.

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ABC GUIDE Performance reviews Structuring the review The performance review differs from the on-going conversations that you as a manager have with your employees. For one, the performance review follows a set structure with certain predetermined areas to be discussed. One of the reasons is that some areas are likely to be perceived as more sensitive or even uncomfortable, and are thus sometimes avoided in daily conversations. Another reason is to ensure that you do not forget an important topic and that everyone in the organization discusses the same areas.

C. The overall work environment Topics such as cooperation, relationships and work environment are discussed.

• How does the employee perceive the level of cooperation and quality of communication in relation to co-workers and managers?

• What can be improved or changed?

• How does he/she perceive your (or the immediate manager’s) role?

• How does he/she view the interactions and cooperation with you (or the immediate manager)?

• What is generally perceived as good and bad?

• Issues related to the physical work environment can also be addressed: • How does the employee experience the work premises?

• Any remarks on ventilation, sound level, work station, personal equipment?

The checklist for performance reviews may differ slightly, depending on the organization. Below is a suggestion of areas that may be included:

A. The last work period The manager and employee jointly assess the performance of the previous period. To what extent were the targets set on the last review reached? Have these been met? If not, discuss jointly the reasons why targets were not met. To the extent that is possible, have employees self-analyze their performance and propose solutions for further improvement.

B. Current work situation This part of the review is about the employee’s views, values and experiences related to the individual work situation and the current professional role. Examples of topics that can be addressed: • What are the employee’s main duties today?

• How is the workload? Stress? Overtime?

• What are the employee’s own expectations, goals and ambitions?

• Does the employee’s desire for development correspond with the organizational needs?

• How does the employee experience his or her role and assignments?

• Which specific tasks does he or she perform above or below expectations?

• What are the employee’s strengths and how can they best be used? What are the weaknesses and how can they be supported or offset?

• What, in general, does the employee think can be improved in the organization and how?

• Does the employee have the necessary resources and conditions for achieving the set objectives? Are there any specific obstacles?

• The overall organizational goals may also be discussed. Is the employee familiar with them?

D. Next period, new goals and competence needs Together, the manager and employee formulate new goals for the coming period within the framework of the existing organizational objectives. It is also important to jointly assess the priority of the stated objectives. Related to the current goals, you will also discuss development needs and requests. Are there any specific competences or skills that the employee needs to develop?

What development activities are the employee most interested in? The goals and development activities are written down and saved for follow-up and feedback. The general rule is that the goals should be made specific and measurable.

Tips! Clarify expectations It is a good idea to initially discuss what expectations both parties have regarding the review. the call and that these vented directly. Expectations can apply to the review itself or the work situation in a larger perspective.

Unclear or unreasonable expectations is a common problem between managers and employees.

Source: SIF

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ABC GUIDE Performance reviews Conducting the review The performance review can be divided into three phases: preparation, implementation and follow-up.

1. Preparation Timing The timing of the review may be adapted to the completion of a project, or when it is appropriate with regard to business planning or fiscal year.

The manager’s preparation An important part of the manager’s preparation is to, well ahead of the reviews, inform all affected employees. This also means explaining why the company wants to conduct the review, which is thus integrated into a larger perspective.

The manager’s own motives for carrying out the reviews are also important to bring up since his or her attitude towards the reviews affects employees’ commitment.

The goal is to involve employees and make them feel part of the process. In addition to information about when the reviews will be held, it is also important to touch on the topics that will be discussed. Most organizations use print templates or software to document the discussion. Make sure that the template, or login to the online version, is distributed well in advance of the review.

To get the most out of the review, emphasize the importance of both parties preparing in advance. In addition it may be useful to distribute the documentation from the last review.

Sample preparation/checklist for the employee • • • • • • • • • • • • •

What are my main tasks and areas of responsibility?

What are my strengths? What am I good at?

What do I need to improve?

What are my ideas on how to improve the way we operate as a company?

How do I know and measure that I do a good work?

How do I experience the work relation with my manager?

What are the requirements / expectations of me?

What support do I need?

What feedback do I receive?

How do I perceive the goals of the business? How do I perceive the purpose of the organization?

What skills do I have and use in my work today?

What skills do I need/want to develop?

What do I need to do to reach my professional goals?

Source: Personnel Manual, Insightlab AB The employee

An important task of the employee is to spend some time to reflect on his/her work situation. What makes him/her most satisfied and motivated? What makes him/her less satisfied? Ideally, the employee should think through and prepare comments, ideas and goals for each part of the review (template). In some organizations, the employee evaluates his/her performance in writing before the review and prepares suggestions, requests and comments. The purpose is to structure the conversation and get an insight into what is important to discuss.

2. The meeting Location The external environment plays an important role. The idea of the review is for the manager and employee to be able to speak without any distractions or interruptions, as compared to the daily conversations, which are often interrupted by phone calls and interaction with others. A neutral and undisturbed place where both feel relaxed and where you can sit comfortably provides the best conditions for the review.

The place chosen, for example the manager’s office, may lead to you falling into habitual roles. Also, it is less suitable to sit opposite each other with a desk in between since this position can refer back to the roles of superior/subordinate.

Length Another pitfall is to allocate insufficient time for the meeting, forcing you to speed up the various parts of the review. The advice is to set aside plenty of time. The length of the review varies from company to company. It can be anything from one hour or more.

In addition, people may need different amounts of time because some find it easier to express themselves in words than others.

Some find it useful to schedule the review at the end of the day, since it is then possible to extend the meeting in the event that the time allocated is not enough.

The opening phase It is the manager’s responsibility to create a relaxed and open atmosphere – the introduction and opening phrases are key.

Phrases that may detract from the importance of the review should be avoided as these can reduce the employee’s motivation to participate in the conversation.

A phrase from the manager’s side, such as ”okay, let’s get this done”, shows that he/she does not really take the review seriously.

Stating the purpose of the review A suitable opening is to again highlight the purpose of the review and stress that it is a mutual conversation rather than an evaluation from the manager’s part. Furthermore, the manager

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ABC GUIDE Performance reviews can briefly go through the areas that will be discussed, at the same time asking if there are any areas in particular that are of importance to the employee.

Privacy Trust and confidentiality are two other conditions that encourage an open dialogue. This may mean that you, before the conversation starts, verbally agree on what gets passed on and what stays between the two of you.

Closing phase Summarizing Before ending the review, look back to see if you agree on what you have been discussing. One tip is to let the employee summarize the conversation first. Afterwards, you can point to important areas that may have been forgotten. Check if you agree on the set priorities, the collaboration, development activities etcetera. Also, make sure that you both agree on which information can and cannot be passed on.

Evaluate

Tips! Ask the right way • Asking questions the right way is an art in itself.

By formulating questions in a way that encourages dialogue you avoid that the conversation becomes an interrogation.

• Use open-ended questions: ”Can you tell me about ...?” ”How do you ...?” Or ”How would you describe ...?” A general guideline is to let your questions begin with what, how, where, when, why or tell me. Avoid closed questions that can be answered with a yes or no.

• To find out your employees’ real opinions, and not what they think you want to hear, it is necessary to avoid leading questions such as ”Don’t you think ...?” or ”Do you agree that ...? ” • You rarely get a completely exhaustive answer to a question, so make sure to ask follow-up questions.

Good formulations for follow-up questions are ”What do you mean when you say ...?” or ”Why do you think it will be so ...?”

When the review is completed, it is useful to reconcile the expectations. Did the review meet your expectations? Did you have time to cover all areas? Were there any parts of the discussion that were unclear? Did you have all the necessary documentation at hand? The purpose is to enable learning and possible improvements in future reviews.

• Keep your questions short and straight. A direct formulation is particularly important when you want to bring up a sensitive topic.

Individual development plan

• A common mistake is to ask several questions in the same sentence. For example, ”What do you think about your work, other co-workers and me?” Formulate one question and one topic at a time.

The conversation should ideally result in an individual development plan where the actions and decisions that have come up during the review are documented. Formulate as clear as possible the goals set and the actions to be implemented, how, by whom and when. Also, decide on next steps and which of you is responsible for informing others about the decisions/plans you have made.

• Use words like “me” and “you” to amplify that the review is yours. Not words such as “one”, “they” or “we”.

Individual follow-up meeting

• The silence that follows a question may be perceived as unpleasant for many. Usually it depends on the respondents’ need of time to think through the question. Be patient and wait for the employee to formulate the answer to your question. Avoid asking a supplementary question directly or answering the question yourself.

Some time after the review, it is advisable to schedule a follow-up meeting to ensure that the objectives and actions that were set are still valid and enforceable. The reason for this may be external changes or reassessment of priorities in the organization.

• You will inevitably discuss other employees. It is important to keep the boundary between concrete opinions and slander. On the whole, the review should be kept at an objective and constructive level.

Group follow-up meeting After completing the performance reviews, the manager may hold a joint follow-up meeting with all employees. Many people may have expressed similar opinions or comments, which might be worth discussing with the whole group.

© 2015 InsightLab