Critical Facts to Conduct Employee Performance Reviews

Employee performance reviews get a bad rap. They can be time-consuming, nerve-wracking and simply ineffective at truly measuring an employee’s performance and contribution to a company. But that might have more to do with how they’re usually conducted — once a year, crammed in before the holidays and using one-size-fits-all forms to evaluate everyone from warehouse workers to marketing managers.

The truth is that employee performance reviews can play an important role in helping you lead and cultivate a happier, more motivated staff. Here are five reasons why your small business should have a performance review process.

1. To set new goals:

It’s no secret that many small business employees stay busier than their large company counterparts — wearing many hats is often one of the draws of working for a small business. But often those added responsibilities don’t leave time for big-picture planning. Having a formal performance review process in place will allow you to take the time with each employee to focus on growth. How do they want to grow as an employee in the next year? And how can they contribute to the growth of the company?

2. To assess achievement of those goals:

A common complaint about employee performance reviews is the lack of follow-through. It’s one thing to set goals; it’s another thing to achieve them. Regular performance reviews throughout the year can help you and your employees stay on track with achieving whatever performance goals are set. And if your review process finds that you and your employees aren’t working toward those goals, you’re also one step closer to finding out why.

3. To address problems:

It’s a natural tendency to want to avoid confrontation, but if an employee isn’t performing well, it’s in your company’s best interest to address the problems. Having a regular review process in place can provide a structured and confidential way of addressing problems with performance.

4. To acknowledge a job well done:

As a small business owner, it can be easy to forget to praise individual employees for doing a good job. You’re focused on other aspects of running your business and you expect employees to do a good job. But, that praise is important to them, and receiving strong marks on a performance review can motivate them to continue doing great work.

5. To gather employee feedback:

An effective performance review isn’t one-sided. It should be an honest, two-way conversation that provides plenty of opportunities for the employee to reflect on his own performance, as well as that of his boss and the company as a whole.

Show Your Care To Your Employee

It can be really easy to get caught up in the day-to-day tasks of running your small business, but remember to take a step back and recognize the employees helping you make your dream a reality. While “Employee Appreciation Day” is technically the first Friday in March, there’s no wrong time to show support and reward your team. Here are a few tips to get you started.

Pick a Theme
A theme lets everyone know you are ready to have fun. If your team loves music, you can host a “Rock On” day with musical video games set up around the office. Do you run a team of coffee lovers? Perhaps a celebration with personalized coffee mugs and fresh ground beans are in order. Whatever theme you pick, make sure it represents your full team.

Change the Dress Code
If you typically dress up in the office, use this as a chance to let your employees dress down (within reason). Send out an email alerting everyone of the big day and any new rules around your one-day dress code. Keep the guidelines light — this is supposed to be a fun day, right? — and related to the theme like “Casual & Jeans welcome!”

Plan Lunch
You’d be surprised at just how far a free lunch can go in the minds of your staff. Have a favorite local restaurant bring the food to you with a full catered lunch. If your team is small enough, you can all head out for lunch, too. (Who doesn’t like to get out of the office from time to time?) You can also open up the food choices to a vote!

Bring Some Fun
Get people away from their computer monitors and get them involved in some team-building fun. You can try some ice-breakers like “What was your dream job as a child” or “Share one thing few people know about you.” Trivia games are also fun, or you can plan an office-related scavenger hunt. If you have an outdoor space, think three-legged or sack races, water-balloon toss and volleyball.

Give a Gift
Depending on the size of your team and your overall event budget, you might be able to swing a nice token of appreciation, like a leather journal or chocolates. For larger teams, set up a candy station with everyone’s favorite. Then, give out plastic bags for everyone to fill up and take home. Or reward everyone with an early leave for the day.

Say “Thank You”

Take the time to tell your team how much you appreciate their dedication and hard work. You can give a speech during lunch or hand out personalized handwritten “thank you” notes. You can also present personalized awards to each member of the team like the “Born Leader Award” or “Team Spirit Award.” However you do it, make sure it’s genuine and comes from the heart.

Secrets To Hire Great Employees

These are the most important factors you should consider to hire the best new employees:

1. Competent: This is still the first factor to consider. Does the potential employee have the necessary skills, experiences and education to successfully complete the tasks you need performed?

2. Capable: Will this person complete not only the easy tasks but will he or she also find ways to deliver on the functions that require more effort and creativity? For me, being capable means the employee has potential for growth and the ability and willingness to take on more responsibility.

3. Compatible: Can this person get along with colleagues, and more importantly, can he or she get along with existing and potential clients and partners? A critical component to also remember is the person’s willingness and ability to be harmonious with you, his or her boss. If the new employee can’t, there will be problems.

4. Commitment: Is the candidate serious about working for the long term? Or is he or she just passing through, always looking for something better? A history of past jobs and time spent at each provides clear insight on the matter.

5. Character: Does the person have values that align with yours? Are they honest; do they tell the truth and keep promises? Are they above reproach? Are they selfless and a team player?

6. Culture: Every business has a culture or a way that people behave and interact with each other. Culture is based on certain values, expectations, policies and procedures that influence the behavior of a leader and employees. Workers who don’t reflect a company’s culture tend to be disruptive and difficult.

7. Compensation: As the employer, be sure the person hired agrees to a market-based compensation package and is satisfied with what is offered. If not, an employee may feel unappreciated and thereby under perform. Be careful about granting stock in the company; if not handled well, it will create future challenges.