Running a successful small business has many components that must run in sync. I think we can all agree that one of the most important advantages of any small business is its people — when the workforce is in tune, the business can flourish. However, having a team that runs at peak performance is easier said than done.
You can cultivate top performance, professional growth and engaged employees through effective and unbiased employee performance appraisals. Regularly letting team members know objectively how they are doing is a key retention tool. Regular feedback can help team members become a more integral part of the organization. With suitable information you can help employees understand and fit into the culture of the company. With everyone on the same page where could your small business go?
Performance review done improperly can be a double edged sword. A good performance review involves coaching, planning and presenting concise and useful information that employees will carry back to the job. Mistakes can be more costly than you might imagine, including lost productivity, loss of faith in management, and loss of commitment to the tasks at hand. It can literally take months or years to regain employees’ lost faith.
Tips for Conducting the Meeting
Employee reviews — when done right — are powerful tools for both your business and your staff. And beyond just helping employees get better at their jobs, they can also help prevent turnover.
There are some common mistakes managers often make while conducting performance reviews. It is critical to the success of the process that you have a well-thought out approach that is fair and equitable to the employee and the company.
Avoiding these common mistakes will help you achieve productive and useful evaluations designed for team members to grow and learn. Here are nine tips:
- Be prepared, don’t wing it. Be ready or reschedule. Surprisingly, managers are often not fully prepared or lack all the information necessary to conduct an effective appraisal.
- Don’t get caught up in pleasantries or small talk. It is easy to get started in polite conversation — this is not the time for it.
- Turn off mobile phones and hold calls. Don’t be distracted. Employees will have some nervousness during the process, so it is important not to have distractions.
- Keep the meeting private. Shut the door — nobody wants to discuss personal information with the door open for coworkers to hear.
- Don’t have a “negative Nellie” conversation. Feedback must be constructive not destructive.
- Stay objective. Keep your emotions out of the conversation. Managers that are obsessive about a particular employee’s performance can find themselves overstepping boundaries and alienating the employee.
- Let the employee talk. Don’t talk over them, or finish their sentence or cut them off — that is just rude.
- Proactively listen and actually hear what the employee is telling you. Allowing them to make their point will give them a sense that they are a part of the conversation and that their voice is being heard.
- Don’t give out platitudes. “You’re great, you’re wonderful, a hard worker” are honestly insulting. If your goal is for someone to leave the evaluation feeling like it was a waste of time, then use those tired old expressions like “you’re the best.”
Learn more about conducting employee reviews and reducing turnover by picking up your copy of Practical Tools to Manage Costly Employee Turnover at www.mjms.net/book.
Margaret Jacoby, SPHR, is President & Principal Consultant of MJ Management Solutions Inc., a strategic partner of HRGroup, a provider of Human Resource support services, including hiring practices, compensation programs, talent development and more. MJ Management Solutions offers a book, “Practical Tools to Manage Costly Employee Turnover” and a “tips and Tools” newsletter. Learn more at www.mjms.net.
