For years, the annual performance appraisal/review has been a staple of the workplace. Once a year, managers sit down with employees, review goals, discuss accomplishments and challenges, and assign a rating. Almost no one enjoys this experience.
In today’s workplace, an annual conversation is not enough. Employees want to know where they stand and how they can grow; either in their current role or the next one. Managers need to establish an ongoing relationship with their employees. I refer to it as a relationship bank account – one can’t make with withdrawals if they haven’t made deposits. It’s key to understand what is in the way of an employee’s success and clear it. If there are performance concerns, they must be addressed before they become bigger issues. Companies need employees who understand not only what they are responsible for, but also how their work contributes to the success of the company.
That is why effective performance management is becoming less about the annual appraisal/review and more about creating a culture of clear expectations, regular feedback, coaching, and accountability.
Start With Clear Expectations
Many performance problems actually begin before an employee ever receives feedback. If employees aren’t sure what success looks like, it is difficult to hold them accountable for falling short.
Every position should have clearly defined expectations around:
- Core responsibilities – position/job descriptions are key
- Quality and accuracy of work – define what that looks like
- Productivity and timeliness – be clear about due dates
- Communication – be clear on when you’ll be checking in for a project status
- Teamwork and collaboration – clear obstacles so your team can collaborate
- Customer or client service – there are 2 clients here – the internal team and those you are serving to make a profit
- Decision-making and problem-solving – be clear on when/where they have authority to make decisions and when you need to be looped in
- Compliance with company policies and procedures – make sure the “ask” is in alignment with your policies.
Job descriptions are a good starting point, but they shouldn’t be the only source of expectations. Managers should translate job duties into measurable behaviors and outcomes.
Instead of saying:
“Communicates effectively with the team.”
Consider:
“Provides timely updates to the team, communicates potential delays before deadlines are missed, and documents important information in the appropriate system.”
The second expectation gives both the employee and manager something concrete to evaluate.
Don’t Wait for the Annual Appraisal/Review
One of the biggest mistakes managers make is saving feedback for a formal review.
If an employee has been missing deadlines for six months, telling them about it during their annual review doesn’t solve the problem. Similarly, if an employee is doing an exceptional job, they shouldn’t have to wait until the end of the year to hear it.
Regular check-ins allow managers to address issues while they are still manageable.
These conversations don’t need to be lengthy or formal. A 15- to 30-minute/week conversation can be enough to ask:
- What’s going well?
- What’s getting in your way?
- What priorities do you need to focus on?
- Is there anything you need from me?
- Are there expectations that aren’t clear?
Consistent conversations create opportunities for coaching rather than simply documenting failure after the fact.
Accountability and Coaching Go Together
Performance management is sometimes viewed as a disciplinary process. It shouldn’t be.
The goal should be to help employees succeed. When performance falls short, managers should first determine why.
- Is the employee lacking training?
- Are expectations unclear?
- Does the employee have the necessary resources?
- Is the workload realistic?
- Is there a process problem?
- Or is the employee simply not meeting a reasonable expectation despite having the necessary support?
Those questions matter because the appropriate response may be very different depending on the cause. An employee who doesn’t know how to perform a task needs training. An employee who knows how to do the job but consistently chooses not to meet expectations may require a different level of accountability.
Managers Need Tools, Too
Companies often expect managers to manage performance without actually teaching them how. That is a recipe for inconsistency. Managers should be trained to:
- Set clear expectations
- Give constructive feedback
- Document performance concerns
- Conduct difficult conversations
- Recognize good performance
- Develop improvement plans
- Distinguish between coaching and discipline
- Apply policies consistently
- Know when to involve Human Resources
Human Resources can provide the framework, but managers are the people who interact with employees every day. They need the confidence and skills to address issues when they occur.
Documentation Is Not Just for Discipline
Good documentation is often associated with employee problems, but documentation should be part of normal performance management. Managers should document significant conversations, goals, accomplishments, coaching discussions, and performance concerns. Documentation helps create continuity and provides a record of what was discussed and what expectations were established. It also helps HR identify patterns across the company. For example, if several employees are struggling with the same process, the issue may not be individual performance. It may indicate a training, staffing, communication, or process problem.
Make Performance Management a Year-Round Process
A strong performance management system doesn’t require more paperwork. It requires better conversations. Consider creating a simple annual cycle:
Beginning of the year: Establish goals and expectations.
Quarterly: Review progress and priorities.
Throughout the year: Provide coaching and feedback as needed.
Mid-year: Conduct a more formal check-in.
Year-end: Evaluate overall performance and establish goals for the coming year.
This approach makes the annual review the summary of an ongoing process rather than the one time each year when performance is discussed.
The Bottom Line
Employees shouldn’t have to guess whether they are meeting expectations. Managers shouldn’t have to wait until an annual appraisal/review to address performance problems. And Human Resources shouldn’t be brought into the conversation only after a situation has escalated. Most employees what to do a good job. They don’t come to work looking to fail or cause issues.
Effective performance management is built on a simple principle:
People perform better when they know what is expected, understand how they are doing, and receive timely feedback and support.
Companies that move beyond the annual appraisal/review and toward continuous performance management can create greater accountability while also giving employees a better opportunity to succeed. The goal isn’t to create more performance appraisals/reviews. The goal is to create better relationships, offer career development, and performance conversations.
Do you need help creating the right employee conversations at your Company? Milestones HR LLC can help! We offer comprehensive fractional HR services.
Reach out to us at Milestones HR, LLC at 608-370-4642 or angie@milestoneshr.com for a free, no-obligation 30-minute exploration conversation.
Visit www.milestoneshr.com to learn more about our fractional human resources services.