Performance Management Reviews Don’t Have to Suck: Here’s What You Can do as a Leader Part 1
After having coached hundreds of individuals and leaders in the corporate world and spending over a decade navigating the space myself, I can say with confidence that no one enjoys the performance management review process.
They are formulaic to a fault, which makes it difficult for both leaders and individuals to figure out what to write. This can lead to awkward conversations and rarely results in a clear path forward for growth.
All of this to say–there is drastic room for improvement. If you are a leader who cares about your employees and their growth, you can absolutely do something about it.
In part one of this two-part series, I’m going to address the various pain points associated with performance management reviews. I will also provide you with tips and strategies on how to use them as a leader. In part two, I’ll address how to set your team up for success, and how to drive meaningful and productive conversations.
Pain Point #1: Figuring Out What To Write
Whether you have to do formal reviews on an annual or semi-annual basis, figuring out what to write for each member of your team can be daunting. Add in the typical crunch for time associated with the review process and it’s no surprise that feedback is often focused on recent projects and deliverables rather than the entire period under review.
The Strategy: Track Growth & Wins on a Monthly Basis
Consistent progress is vital for both personal and team success. Make it a habit to document big wins, areas of growth, and areas of development for each team member on a monthly basis.
While this may sound more daunting than sitting down once a year, this practice has a few benefits:
It will make your standing 1:1s more impactful. Whether you meet on a weekly, bi-weekly, or monthly basis, these notes will help you move past just discussing deliverables.
It will streamline your year-end process. Imagine how much more efficient and effective you’ll be at completing your portion of the year-end review process when you have 12 months of notes and data at your fingertips! You’ll be able to call out multiple wins, comment on how far someone has come since the beginning of the year, and have specific examples to support those areas that may require additional focus and growth.
Bonus Tip: Encourage your team members to track wins and areas of improvement on a monthly basis as well!
Pain Point #2: Telling a Team Member They’re Not Ready for That Promotion
Let’s be honest - most people feel like they’re ready for a promotion before they likely are. This can lead to some pretty frustrating year-end review discussions.
One thing has become glaringly obvious to me since becoming a coach: every leader has a different perspective on what is required for a promotion. Some think that an employee must be hitting 70% of markers at the next level, others think that 40-50% is enough. Worse is that often these different perspectives are coming from leaders within the same organization.
This can make it confusing and frustrating for employees seeking a promotion. It can also lead them to feel burnt out and undervalued if they are continually taking on tasks that come with moving up within the organization.
The Strategy: Set Incredibly Clear Expectations for Promotion from the Onset
Every employee should be given a matrix of responsibilities and core competencies for their role and for the next level. Additionally, whatever percentage of markers you believe should be hit in order to receive a promotion should be communicated upfront with your entire team. That way everyone is working towards the same goal with the same level of understanding.
The Strategy: Don’t Wait Until The Review To Deliver the News
While this strategy could be a stand-alone–as it’s not directly tied to promotions–we’re slotting it in here. And I’d like you to read the following statement as if I’m yelling it from a rooftop because it is that important: Nothing discussed during year-end reviews should be new information!
Use your standing 1:1 meetings to discuss wins, areas for improvement, and expectations for growth or promotion. Whether your employee is seeking promotion or not, you can use the core competencies matrix on a monthly or quarterly basis to ensure both you and your employees are aligned on how they are performing, where they need to improve, what else they might want to focus on, and how you can support them as a leader.
Pain Point #3: The Meeting Doesn’t Result in Productive Conversations or Action Plans
Candidly speaking, this is actually the second biggest complaint I receive from my clients. Second to the angst of not knowing what to write or not having enough time to thoughtfully complete the review. (See pain point #1…) However, I have it listed as #3 because as I began writing this article, I realized that in order to fully address this topic, I’d have to spin the strategy and action plans into their own blog post. So, in part two of this two-part series, I’ll dive more in-depth into how to address this pain point; however, for now, here are the core reasons why I believe annual performance review meetings may not be very productive as well as two things you can do immediately to fix the issue.
Why Annual Performance Reviews May Not Be Productive:
Old data is being reviewed. Love it or hate it, reviews are often entered into the formal HR system 1-2 months prior to the conversation, which means by the time you schedule the meeting, the employee may have already addressed some of the items you had listed.
Your employee hasn’t had time to appropriately digest the information you’re reviewing.
You’re checking an HR box, using the time to substantiate/explain the employee’s ratings, rather than using the conversation to drive forward action.
The entire process is explained as “the hunger games” and the mindset that both leaders and employees bring to the meeting is completely unproductive or helpful.
The Strategy: Provide a Copy of the Review 24-48 Hours in Advance
Where possible, share the performance review PDF with your team members in advance*. When reports are provided during the actual meeting, employees spend more time trying to read, digest, and process the words on the page, rather than engaging or hearing what you, as their leader have to say. By providing the report in advance, you’re allowing them to digest the information in a safe space, which also grants them permission to work through any initial emotions that may arise. Ask them to come to the first meeting with questions, and concerns and encourage an open dialogue about their initial response.
*Check with your HR team for rules surrounding distribution.
The Strategy: Schedule Two Review Meetings
This two-meeting approach has been a game-changer for my clients. Use the first meeting to discuss the written review and to provide a safe space for your employees to digest the information, express their initial reactions, emotions, and ask questions. The second meeting, which should happen within a week of the first, is where you and your employee can have a much more grounded and open conversation about their goals, areas of interest, specific plans of action for improvement, or for their path to promotion. (More on how to structure the second conversation in part two of this blog series…)
Final Thoughts
Performance Management Reviews are a necessary evil in the corporate world, but they don’t have to suck! Having leaders that care - - like you! - - is so important to the overall success of an organization.
By taking the time to set yourself and your team up for success with ongoing monitoring and the celebration of wins, encouraging candid conversations throughout the year about progress, and setting clear expectations, you can create an environment where your team members feel empowered and motivated to achieve their highest potential. It’s through embracing the human side of leadership that we can rewrite the script and make the annual review process meaningful again!
Keep an eye out for Part Two of this blog where I address how to set your team up for success and how to drive meaningful and productive conversations.
In the meantime, if you’re looking for more resources to help you embrace the human side of leadership, please check out the other blog articles and free resources I have provided on my website. If you’re interested in pursuing 1:1 leadership coaching–which can help you make the mindset and behavioral shifts necessary to become a more impactful leader–feel free to schedule a complimentary exploration call with me here.
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