How to Create a Performance Review Employees and Managers will Love

There are Numerous psychological studies that suggest regular, fair, and diverse feedback improves employee performance and engagement. If this is true, then why is performance review, a systematic process for evaluating past performance and providing constructive feedback, such a disliked process? And more importantly what can employers do about it?

These questions are more important than ever. The workforce is asking for trust, and pushing for a more balanced approach to work and life. Smart employers know that finding top talent is hard, and no labor market dynamics can change the fact that employees that feel valued produce better results.

Why are performance reviews missing the mark?

According to Gallup only 2 in 10 employees “strongly agree that their performance is managed in a way that motivates them to do outstanding work.” It is easy to see why this is the case when you consider two ways in which performance reviews are typically constructed:

1. Tendency to focus on failure.

Most performance reviews largely focus on what the employee hasn’t done well, or what they can and should do better to be more productive. Said different performance reviews have a heavy emphasis on the fails, and how to get more input-output.

2. Retroactive

One key aspect for feedback to be useful is that is should be provided on a regular basis. It is not enough to have one (or even two) conversations throughout the year. However, most performance reviews are a single yearly conversation or at most a mid-year conversation and an end-of-year one. If we want to use a sport analogy this would be like waiting until the end of the season to tell a player what they are doing well, where they can improve, and how to do it.

How can we use performance reviews to create better workplaces and happier employees?

It is hard to let go of the traditional performance reviews if you already have a process in place (particularly if it has ratings that tie into compensation decisions). However, there are two ways that any company can transform them or build new ones to create positive outcomes.

1. Focus on development.

Managers’ goal of a performance review should be to answer the question “what can I do to help my team operate at a higher level and do their best work?” They should unearth what helps their employees thrive and what is inhibiting them from excelling. If you need some help visualizing how to hold a conversation focused on development, you can click here to use our Quarterly One-on-One Template.

2. Make it an ongoing conversation.

Instead of making it a twice a year process, think of you as a coach with a team of athletes. Look for opportunities to provide both positive and constructive feedback consistently. “Review the plays” and show them what they did right and why they “fumbled the ball.” It can help to schedule a couple of more formal conversations at least 4 times during the year, and if you hold regular checkins make it a habit to give “kudos” to reinforce the positive.

After the last two years of pandemic learnings, employers have an opportunity to re-construct their people processes, including performance reviews, into practices that make their teams valued. Most employees go to work hoping to do a good job, advance their careers, reach their life/work goals. Those employers that make it a priority to use performance reviews to help them do great at work (and life), will find themselves with engaged employees, and better business results.