How To Effectively Conduct Staff Performance Reviews

Are you frustrated that your staff members are not performing as well as they should?

If so, when was the last time you actually conducted performance reviews of your staff?

It is essential as a small business owner that you review your staff performance regularly and effectively to maintain productivity and efficiency in your business.

Here are four key points to consider when you conduct your next performance review of your staff:

1) Set clear standards

Firstly, make sure that you have set very clear standards of performance. This includes the key attitudes that they need to have as employees for your business. On top of that, be clear on the level of performance in relation to the key skills that they need to have as part of doing their role well. If you do not have one already, create a job descriptions with a list of key responsibilities so that you can easily compare how well they are doing their role.  Having a clear standard set for each individual in your business is crucial in ensuring that everyone is on the same page and knows what they are working towards.

2) Prepare yourself

Secondly, make sure that both your staff and yourself prepare for the meeting to ensure a productive discussion. What are some of the key questions you want to ask? What are some of the key areas of performance you want to address? Are there any attitudes or behaviours that you want to bring up?  Get your staff to review their own performance and prepare some simple questions about how they think they are doing.

3) Formalise your review

Thirdly, formalise a structure.  . Have a review process where you’re regularly reviewing the performance of everyone on your team.  Organise a formal meeting that enables you to effectively review how your staff are doing in terms of attitude, skills, areas for improvement and how they are meeting standards. If they are exceeding the set standard, think of ways to reward them. If they are below standard, think of strategies or advice to get them back on track.  Remember the more feedback people receive on their performance, the more corrections they can make.

4) Have a clear action plan

Lastly, have a clear action plan. At the end of the meeting, make sure that you have come up with an action plan based on their performance review. Is there more training required? Is there some behaviour that needs to be worked on? Are there extra responsibilities they could be taking on? Is there any support that you need to provide as the business owner to help them do their job effectively?  This is important so that you can improve the performance of each of your staff as you build your business.

In summary, having effective performance reviews in your business is essential to improve productivity, efficiency, and happiness in your team. Remember the four things to consider:

  1. Setting clear standards;
  2. Being prepared;
  3. Formalising the review; and
  4. Having a clear action plan.

By following these steps, you’ll be able to improve performance and build a motivated and productive team.

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Free Guide:
7 Deadly Mistakes

That Sabotage Business Growth (and how to avoid them)