Too many times, I hear the supervisor or employee asking how many high scores he needs to get the extra bonus for a performance raise! That is missing the point. Performance reviews are there for one reason and one reason only, to review an employee’s performance for a specified period. Getting the extra bonus is a by-product and should not be the goal.
Reviews are great for sitting down with the employee and really looking at each category and rate how they are doing. Talk about each topic like creativity, attendance, relationships, etc. Be open and honest and do not be afraid to address problem areas.
I had one employee that told me she was looking forward to this time and finding out where she can improve. She had a great attitude! We discussed each section of the review. One area on the review I felt she was not up to par on, so we talked about how she could do better. It was not a negative at all just an honest evaluation and some help on how to correct it.
Make sure you highlight areas the employee has improved on since the last review. People want to hear they are doing better and that someone, especially their boss, noticed it. Then make sure you highlight areas that are over your expectations and why you feel that way. This is where the bonus can come in if you want to set it up that way. Performance reviews, if set up correctly, will reward those employees that have gone the extra mile and performed over your expectations.
This may sound harsh, but doing what is expected of you, is expected! You should be doing that all along anyway. The reward is keeping your job by doing it day in day out. Now, before you get bent out of shape on that statement, you can set up your reward process by giving a percentage to each overall rating. Make the bonus different for the scale of performance giving the highest percentage to those that go beyond your expectations and a lower percentage to those just meeting your expectations and lower from there. The best part of this concept is the employee knows that during the year doing work beyond expectations will be rewarded more.
Performance reviews are a great tool for making better employees by evaluating the good and the bad and helping the employee make some positive changes. Also, include goals and what training may need to happen because of the review.
Performance reviews are good tools to use with your employees and can be a positive experience for both sides. Just do not be hung up on the bonus part and do not make it the focus. If you make the bonus the focus, I have found you do not get a true and accurate review.
Do you do reviews or not? If not, why not? Your comments!
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