Top Five Tips to Conduct an Employee Performance Review

1. Performance Reviews Should be Ongoing

Throughout the year, an employer should be providing feedback to each employee. If an employee is failing to reach performance goals or has a bad attitude, this should be addressed immediately and noted in their employee file. When a client comes to us with a problem employee, they are in much better shape when the employee’s file actually shows what has actually been going on. At the same time, praise when your employee goes above and beyond. This keeps the employee motivated. The perks can be as simple as a company-wide shout-out, a VIP parking space for a week, or even a simple “Great job!” The takeaway is that reviews should be continuous, which brings us to our next point…

2. Reviews Should Not be a Surprise.

If an employee is surprised by a poor review, then you are not doing your job as his supervisor. A supervisor should be communicating with a subordinate employee continually to recognize wins and failures in the employee’s performance. This helps to cultivate the employee and keep him on the same page.

3. Outline Expectations for Next Year.

An annual review is the perfect time to evaluate an employee’s past year’s performance, and also to set out guidelines for the future. If an employee has performed poorly, consider setting out a Performance Improvement Plan. This will set specific and measurable goals for both the company and the employee to work toward. They should be the minimum goals for the job performance. Then periodically review the Performance Improvement Plan to ensure the employee’s performance is actually improving. If he continues to fail to reach the minimum expectations, it is likely time to cut the employee loose or find a job that would suit him better. To motivate a worker, discuss with him the future you see for him in the company, and he can talk about his goals.

4. Compensation Adjustment

An annual review is the perfect time to asses an employee’s compensation package. If she has been doing well, rewarding her with a raise or bonus may be appropriate, depending on the company’s financial position. Raises and bonuses can, of course, be awarded more than once a year. This is particularly helpful when recognizing an employee’s stellar contribution.

5. Keep Up the Paperwork

Put the Performance Review in the file, along with periodic reviews.

For more information about employment law and how to conduct an employee performance review, contact the Goosmann Law Firm at info@goosmannlaw.com or call 712-226-4000.