The performance review season is often a time of dread for employers and employees alike. However, as a small business owner and manager, it is your responsibility to ensure that the reviews are completed. The performance review process is a tool that helps to benchmark each employee’s success and identify their areas of difficulty. It summarizes the employee’s activities over the course of the review period and it measures the employee’s overall performance throughout that period. The findings of the review should not only display the employee’s strengths and weaknesses, it should encourage career development by measuring and setting goals and identifying training needs.
The information within the performance review should reflect strong research and attention to details. The review should correlate findings that have been collected throughout the review period. The information within the employee’s file should be included in the review. This information should include aspects such as customer complaints, disciplinary actions, and attendance issues, as well as positive information like compliments, strong sales and superior quality adherence. Although observations can be included in your review, you should only include first-hand observations and avoid using guesswork, rumors and allegations.
Strengths and Weaknesses
The performance review is an analysis of the employee’s success and failure in their position and within the company. One of the most effective ways in determining these aspects is to identify the employee’s strengths and weaknesses. As you read through your employee’s file, you should categorize those strengths and weaknesses. Classifying those categories will help you to determine the employee’s overall viability and identify the areas in which the employee needs additional training or attention.
If your employee has been around for more than one performance evaluation, you should pull those reviews. In this case, you will want to review those previous evaluations in order to compare and contrast the employee’s performance to the previous years. Hopefully, you will see an increase in the employee’s overall performance. Still, you might not. These are areas that you will want to highlight in the performance review. You can speak on the employee’s overall evolution throughout the years and use this information to develop the employee’s career path in your business.
The review of your employee’s performance should always include a detailed synopsis of the overall performance. The review should include your comments on the items that are highlighted in the review. The comments should include constructive criticism that outlines the issues and provides ways to improve or maintain the status.
The final section of the review is usually the portion that most employees want to see first. This is the portion of the review where you will inform your employee of any applicable salary increases that may result from a good review. If you give salary increases for good performance reviews, you should include your employee’s current salary, their resulting increase percentage or amount, and their new salary. Similar to the rest of the review, it is important that you comment on the reason for the particular increase amount or percentage. For example, “A good to excellent performance appraisal qualifies for a salary increase of 5 percent.”