Nextiva Tuesday Tip: Perfecting the “Dreaded” Employee Review

Stocksy_txp17ae6739N13000_Small_143559Few small business owners relish reviewing employees, but regular reviews are crucial to making your staff the best it can be. Follow these steps for effective reviews:

Be consistent. Use the same review form for each employee in the same capacity—such as all your hourly employees, all your customer service employees, etc. Check out the forms at DocStoc or Microsoft Office templates.

Be prepared. Reviews should be based on specifics, not on your general feeling as to how the person has done in the last three weeks. Document the employee’s performance during the year, both positive and negative, so you can refer to specific examples during the review.

Get input from the employee. Have the employee complete a self-evaluation before the review and give yourself time to read it thoroughly. This will tell you if the employee’s opinion of his or her performance is accurate or way off base.

Provide a balance of positive and negative feedback. Even the best employees need some ideas for how to stretch or improve, or they will become bored. Conversely, even the worst performers need some positive strokes in order not to be completely demoralized. Find something positive and constructive to say so that the review isn’t all lopsided.

Look back and ahead. In addition to reviewing the person’s performance since the last review, look ahead to what the outcomes will be if the person takes (or doesn’t) the steps you’ll recommend during the review. Will he or she be in line for a promotion, or at risk of termination?

Get feedback. It’s easy for the employer to do all the talking, especially in a review that is strongly negative or positive. But be sure you give the employee time to speak so he or she can clarify any issues that may arise. If you ask employees to share ideas for how they can improve, they are more likely to be invested in the outcome.

Clarify next steps.

  • If the employee got a good review, perhaps he or she is getting a promotion and/or a raise. Let the person know the new title, new wage or salary and when both will take effect.
  • If the person got a poor review, you’ll need to specify what remedial actions have to be taken by what date, and what will happen if the person does or does not achieve these milestones.

Codify the discussion. After the review, complete the form, making sure it’s accurate and that you fill in any details that arose during the review. Have the employee sign and date the review form, and add it to the personnel file.

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