Effective Performance Appraisals

For some of us it’s “that time again” - annual reviews which are always a feat in organization and communication. Just because a time frame passes doesn’t mean an increase in pay is due, especially in the privately owned businesses. It would be nice if time passage related to increased profits and gross revenue, but it doesn’t always pan out that way.

So how does a company continue to motivate employees without pay raises? To hold reviews or not to hold reviews, that is often the question, especially if you realize that the automatic increases that your employees might expect aren’t in the budget.

As we approach a review, we need to be clear of the objective - to clearly and constructively give employees feedback on the job they are doing, and the job that we expect them to do. Of course we do that with a positive twist, but likely not too positive; otherwise we might be sending a mixed message, “You’re fantastic at your job, but I can’t pay you what you are worth.” So we carefully word what we say or don’t say anything at all. But, if we really think about what we should be focusing on, it shouldn’t be that difficult.

Clearly we need to give feedback on how the tasks are being accomplished, make suggestions on new direction, but ultimately listen, listen, listen. This is the employees’ opportunity to tell you how they think they are doing, what they think they could do better, and how the systems are working for them. As a supervisor this is the time when you can set your yearly personal goals and discuss opportunities for growth. Make a personal plan with the employee that ties to your overall master plan for the department. Show that you care about them personally and want them to be part of the overall growth within the company.

LearnKey provides training for managers on specific skills such as motivating and goal setting, empowering employees, and effective performance appraisals. Companies who have managers with these types of skills are more likely to keep their workforce and avoid high turnover rates. An average employee takes three months to completely train, but to maintain a healthy environment to retain your employees takes only 30 minutes and a good collaborative action plan between you and your employees.