It’s that time of year again. When, for a brief period of time, our minds turn from our daily toil to focus instead on something bigger than ourselves, something that has a life and energy all its own. Christmas and the holidays are a reasonable guess, but there’s something else. It’s time for yearend performance evaluations.
If your company is like many, an annual performance evaluation process, especially when tied to annual bonuses or salary increases, has a way of changing the workplace environment. Both employees and supervisors can be a bit on edge, in part because of the implications and outcomes associated with personal evaluations, and in part because of the administrative burden the process presents. It gives new meaning to the term “performance anxiety.”
And let’s face it. No one really likes annual performance evaluations. Certainly not the employees who have to condense an entire year’s worth of work into a brief, but meaningful, list of accomplishments, nor the supervisors who have to personally document performance proof-points for each employee throughout the entire year to support the feedback they ultimately have to deliver. And unfortunately, the end result is often less-than-relevant performance feedback that does little to help an employee understand the company’s objectives, develop professionally or correct poor performance.
So what is the answer? How do you design a performance evaluation process that is relevant and aligns your employees to your company’s goals without detracting from productivity or morale? Below, the components of a fail-safe process are condensed into four easy-to-remember steps. However, implementing and maintaining a constructive performance management process is hardly that easy. It requires time, effort and commitment.
Four Ds of Performance Management
Step #1: Define
Someone once said, “Give me the luxury of a well-defined plan.” Clearly defined goals and performance expectations are indeed a luxury when they eliminate uncertainly and ambiguity. It’s like a road trip -- if you know where you need to go and you have a road map for getting there, you will reach your destination with fewer detours, diversions or pit stops.
What does a well-defined plan entail? For starters, companies should maintain current job descriptions. While an employee may have been hired into a certain position, roles and responsibilities have a way of changing as the employee gains experience and develops new skills. It is important to recognize that growth and update job descriptions to reflect new duties and responsibilities.
Supervisors should also work with employees to define individual goals and establish priorities based on organizational objectives. Naturally, these should change as the company’s focus shifts.
Finally, supervisors should define an expected standard of performance. Paint a clear picture for employees of what it takes to succeed. What skills do they need to further develop? What kind of attitude should they possess? What kind of physical and mental challenges will they be expected to overcome? Don’t be afraid to set your standards high, but be sure to provide the necessary tools and opportunities for employees to step up to those high standards. And, of course, be prepared to reward those who meet or exceed those standards.
Step #2: Document
Documenting performance is perhaps the most taxing, yet important, component to good performance management. Many supervisors find it difficult to maintain adequate performance files on employees, so when the time comes to discuss performance they have no specific examples to point to and the conversation becomes general and ineffective.
Documenting performance doesn’t have to be a daunting task. Make a point to jot down notes about employee contributions or problems the way you might keep a running to-do list. Keeping some record of employee performance is not only helpful in providing relevant and concrete feedback, but it becomes critical if poor performance needs to be addressed.
Of course, supervisors can’t possibly see everything. Companies may want to consider utilizing a 360 degree performance feedback system that can incorporate feedback from an employee’s internal client groups, customers, peers or direct reports. Organizations that employ 360 systems point to a number of advantages, including feedback that is more accurate and reflective of employees’ true performance than feedback from the supervisor alone.
Step #3: Discuss
Too often we limit discussions about performance to a set time once a year, so those discussions grow in perceived significance, and as a result, they become more difficult conversations for both supervisors and employees. However, when the topic of performance is not treated as “taboo,” it becomes easier for everyone to discuss openly.
Human resource experts suggest that it is far more effective to maintain an ongoing and open dialog about performance. Point out what employees are doing right or wrong as you notice it so they can modify their behavior immediately. If you wait until the end of a twelve month period to correct poor performance, bad habits are likely to be ingrained and more difficult to correct. On the other hand, more frequent pats on the back for a job well done can contribute significantly to more positive morale and a more productive work environment.
While making performance an ongoing topic of informal discussions, it is still important to schedule more formal monthly or quarterly meetings to discuss an employee’s projects and his or her performance related to them. Regular and ongoing dialog, instead of a once-a-year discussion, will help ensure that employees are receiving timely and relevant feedback. These regular conversations between supervisors and employees will also help employees keep up with changing organizational objectives so they can shift gears quickly and align themselves accordingly.
Step #4: Develop
The goal of performance management should be focused toward employee development and improvement, focusing on what skills or characteristics the organization most wants to recognize and reward, be it productivity, innovativeness, or teamwork. The process need not be threatening or punitive. Instead, it should exist to offer direction and opportunity for professional growth.
With that in mind, the product of each performance review should be a plan for the employee’s continued development. The plan should outline areas for additional training, set new goals, establish priorities, and perhaps even map a path to a promotion or pay increase, detailing what objectives still need to be met. Such a plan can become an agreement of sorts between the company and the employee, and can be the roadmap an employee refers to occasionally for needed direction and motivation.
So there it is – the four Ds to designing a productive performance management process. At the end of the day, however, helpful advice alone will not make implementing and maintaining such a process any less effort. But if companies are willing to make the investment, they will have a process that delivers productive feedback to employees and positive returns in the form of a high-performing workforce.
