avatarRo Fernandez

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Mastering Performance Reviews: A Guide to Fair, Transparent, and Effective Employee Evaluations

A performance review, or performance evaluation, sometimes shortened to “PA”, is a periodic and systematic process where the job performance of an employee is documented and evaluated. In my experience, the performance review is a crucial part of the ongoing dialogue between managers and employees, typically happening once a year. It summarizes ongoing performance and development conversations and provides a record of past performance and expectations for work moving forward. Initially, I thought that performance reviews were directly associated with salary reviews, but I learned that this is a common assumption. Instead, the performance review is a tool for continuous learning, improvement, and self-reflection. It also helps employees understand where they thrive and where they are naturally good, which we call their strengths or superpowers, as well as areas that need attention or improvement. In some cases, it even helps spotlight potential new career paths or areas for growth.

For me, it’s also an opportunity for managers to evaluate how they can leverage those superpowers, giving employees more opportunities to shine and grow. It opens a line of communication to discuss career growth expectations. But what is a good way to provide feedback, and how should you manage this process as a manager? Here are some tips based on our internal processes and what has worked for me.

Objectives and Obligations (Employee OO)

Sometimes, I like to share key objectives with the employee at the beginning of the year, understanding that these can change as we can’t predict all challenges along the way. Other times, for roles more focused on certain responsibilities, we share a clear sheet with responsibilities and expected deliverables. The team knows how they will be evaluated.

In other words, I usually provide a list of objectives and obligations at the beginning of the year to each employee, and we discuss those objectives. Additionally, in my case, we have monthly objectives as well. This is my way to share with each employee the key things I want them to achieve by the end of the year. It’s their success cheat sheet.

OO Employee — Nova

This is what I use when I provide feedback or conduct a performance review. During any of my performance reviews, I don’t only measure objectives and results. I also put effort into measuring other things that, from my point of view, are essential to creating a great work environment and ensuring teamwork is effective. For example, I measure honesty and cooperation, as well as teamwork, problem-solving abilities, and autonomy, among others.

Growth Recommendations (initial evaluation)

Before I provide my feedback to the employee, I make time to think about what recommendations I will give to each employee on areas they can improve and what I would recommend for them. In this, I highlight what I believe are their strengths and weaknesses. Based on the areas where their performance is low and needs improvement, I think about how they can improve.

I like to think about the different areas that can affect the employee. In my case, I evaluate the following among others: - Team environment: What can we change or improve in the team environment to enable this employee? What feedback can other team members provide to help this team member? - Leadership: What can we do better as leaders to help them improve? - Individual: What do they need to change? - Processes: What processes can be improved to better enable the team, provide more autonomy, create a fair and transparent workspace, and build trust?

Here is a quick video that walks you through this exercise. It personally helps me think about recommendations.

But now, how do I provide feedback during the performance review?

I usually start by explaining some of their strengths and the areas where they seem natural, as well as the areas that may need improvement. I follow with a question like: “What do you think? What else would you add to what I am mentioning, or where do you disagree?” Then, I move forward and discuss objectives and results. I mention each objective one by one and ask them to tell me how they think they did and where they think they should have improved. Then, I provide my feedback right after.

Employee performance review — Nova

During this process, you may find what I like to call “blind spots” — areas that you see as undeveloped or that need attention and that the employee is not aware of. You need to bring awareness to these areas. Then, continue discussing general areas like teamwork, overall work, productivity, attitude, etc.

The next step is extremely encouraged.

The Feedback loop!

Ask: How can I better support you? what feedback do you have for me?

I often ask our team to provide feedback to their leaders. This process helps give visibility to managers on what the team needs from them, provides a way to learn, and encourages fair feedback. In a way, this is an opportunity for the employee to provide feedback in return, creating a chance for healthy dialogue where both the leader and the employee approach feedback with curiosity, a growth mindset, and without ego.

Finally, finish by providing your recommendations. These can be on a quick document with links. You can share this with the employee and mention that you are there to support them. I like to finalize my sessions by ensuring they take the initiative for change and acknowledging that I don’t know everything available to them, so my recommendations are just a small piece of the puzzle.

employee performance review — Nova

Final notes — Finalizing and Providing Tips for Effective Performance Reviews

Performance reviews are not just about evaluating past performance; they are a strategic tool for fostering growth, encouraging self-reflection, and aligning individual objectives with organizational goals. Here are some final tips to ensure your performance reviews are effective, fair, and constructive:

1. Prepare Thoroughly

  • Gather Data: Collect performance data from various sources, including self-assessments, peer reviews, and metrics related to the employee’s objectives.
  • Set Clear Criteria: Define the criteria and metrics you will use to evaluate performance to ensure consistency and transparency.

2. Foster a Growth Mindset

  • Encourage Self-Reflection: Ask employees to reflect on their own performance and identify their strengths and areas for improvement.
  • Promote Continuous Learning: Emphasize the importance of continuous learning and development. Provide resources and opportunities for skill enhancement.

3. Be Specific and Constructive

  • Highlight Specific Examples: Use specific examples to illustrate points about performance, both strengths, and areas needing improvement.
  • Provide Actionable Feedback: Ensure that feedback is actionable. Suggest specific steps the employee can take to improve in identified areas.

4. Focus on Strengths and Areas for Growth

  • Leverage Strengths: Identify and leverage the employee’s strengths. Discuss how they can use these strengths to add more value to their role and the organization.
  • Address Areas for Improvement: Be honest and direct about areas needing improvement, but frame them positively as opportunities for growth.

5. Encourage Two-Way Dialogue

  • Listen Actively: Ensure the review is a two-way conversation. Listen to the employee’s feedback and perspective.
  • Ask Open-Ended Questions: Use open-ended questions to encourage discussion and gain deeper insights into the employee’s experience and expectations.

6. Set Clear Goals and Expectations

  • Define Future Objectives: Collaboratively set clear, achievable goals for the next review period. Ensure these align with the employee’s career aspirations and organizational objectives.
  • Clarify Expectations: Make sure the employee understands what is expected of them and how their performance will be measured going forward.

7. Follow Up and Support

  • Regular Check-Ins: Schedule regular check-ins to discuss progress toward goals and address any challenges the employee may face.
  • Provide Ongoing Support: Offer continuous support and resources to help the employee succeed. This could include training programs, mentorship, or additional tools.

Effective performance reviews are vital for employee development and organizational success. By preparing thoroughly, fostering a growth mindset, providing specific and constructive feedback, focusing on strengths, encouraging dialogue, setting clear goals, and offering ongoing support, you can create a performance review process that not only evaluates past performance but also inspires future success. Remember, the goal is to build a collaborative environment where feedback is seen as a tool for growth and improvement, fostering a culture of excellence and continuous development.

By incorporating these tips, you can ensure that your performance reviews are a positive, empowering experience that contributes to the overall success of both the employee and the organization.

Join the Conversation!

I hope you found these tips for conducting effective performance reviews helpful. If you have any additional tips, insights, or experiences to share, I would love to hear from you! Please leave a comment below to join the conversation and help our community grow.

Don’t forget to like this post if you found it valuable, and follow Nova for more tools, resources, and expert advice on creating a thriving workplace. Together, we can build a supportive and innovative community dedicated to continuous improvement and success.

Leadership Development
Leadership
Management And Leadership
Management
Career Growth
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