Performance reviews help in the process of developing employees. It’s done regularly to ensure that managers are keeping track of employees as they grow with the company.

Unfortunately, these performance reviews are sometimes handled poorly, causing employees to feel demoralized, dismissed, unappreciated and uncared for, instead of  helping to improve their job performance. In other cases, performance reviews are often seen as a routine task or a formality.  When they are considered perfunctory, it comes across to the employee and leaves them thinking “why bother”.  

The Ugly Side of Awkward Performance Reviews and Developing Employees

Chris, an advertising sales representative, worked at a big ad agency in Los Angeles. His performance review was coming up and he knew he wasn’t performing as well as he could have.

Unfortunately, his manager wasn’t good in dealing with people. Chris was expecting negative feedback, but he didn’t expect his manager to call him a slowpoke. Although his work wasn’t perfect, Chris was closing sales and making the company money. He merely needed more time to exceed his quota. Chris quit within a month of the performance review and now works for the competitor.

When handled correctly, a performance review can encourage an employee to perform better. Sadly, often developing employees doesn’t come naturally to managers. There is a right and wrong way of handling performance reviews.

Watch Your Language!

There’s always a better way of saying things. Even the most negative of criticisms, when said in a constructive manner, can help people instead of hurt them.

But what if, instead of helping people, you end up saying the wrong things and in the wrong way?

Performance reviews can help you in developing employees, or it can increase employee turnover. It all depends on how you handle the performance review. If done poorly, these can discourage employees and just worsen the way they work.

Giving Bad News and Criticisms on Performance Reviews

It’s easy to pinpoint what they have done wrong. Relaying the bad news is what plenty of managers get wrong too.

There are several ways a manager can go wrong in giving annual performance assessments. When managers don’t really know their employees or they are not confident in giving feedback, these performance reviews can be vague or too critical.  An all-negative review crushes employee morale, and it surely doesn’t help in developing employees.

Performance Reviews can Boost Employee Development if:

— It reviews employee performance, both good and bad, compared to the company’s KPIs. Feedback must be given to show where a person has been successful, but should also pinpoint areas for improvement.

— It gauges the employee’s contribution to the company’s vision and goals.

— Managers follow through. A performance review serves to remind the employee and his manager of his past performance, but without follow-through, those goals could easily be forgotten.

— Developing employees through regular performance reviews is a widely practiced process, and yet many businesses are doing it wrong.

What about you? Are you having trouble doing performance reviews?

Performance reviews is one way to move individuals and your team forward.  What are other ways?

Download Functioning Together:  Moving Your Team From Ordinary to Extraordinary.  You won’t be sorry you did.