3 Reasons Why Performance Reviews Boost Business Productivity

Employee performance reviews are not a thing of the past.  

If you’re in a managerial position in your company, you should be hosting regular employee performance reviews to ensure your employees are faring well in the company as well as to keep track of the overarching goals of the company.  

First, let’s dive in to what a modern employee performance review actually looks like:  

It’s a two-way conversation between a manager and an employee that aims at reviewing employee’s development, growth and impact. It is a time to be transparent, to coach and to understand each other’s role in the company. This should be happening at least three times a year and there should be follow up steps for the employee to continue in the right direction.  

These employee performance reviews should be future-focused and should help boost business productivity in your company. If you’re not having regular employee performance reviews, here are 3 reasons why you should. 

1. Increase Overall Company Performance

If your employees aren’t performing, it will be difficult to achieve the company’s goals and objectives. Taking the time to host employee performance reviews, gives you the time to connect with the employees to discuss areas that they need to improve on to stay aligned with the company’s overarching goal.  

For example, if you’re a manager to a social-media marketing executive, in these employee performance reviews, you can set goals for social media reach. If your company has 10k followers on Instagram in the month of January, you can set a goal with your employee to hit 20k by April – the next time you have another employee performance review. This creates a clear target and deadline for the employee to meet and also allows you to track his or her progress more efficiently.  

Employee performance reviews are also the best time to collect data on employees, it can show you their strengths and weaknesses – giving you a better gauge on the next possible candidate for a promotion.  

2. Engaging with Employees on a Personal Level

Employee performance reviews shouldn’t be solely about company progress – it is also the time to understand your employee on a personal level. Engaging with your staff and understanding their areas of concern can help with job satisfaction and loyalty to your company. Sit with your employee and take in their feedback (yes, this could include complaints). Noticing and rectifying these areas of concern can help with the individual’s engagement in the company.  

This is also the perfect time to boost team morale. Give praise on good performance, highlight their strengths and identify their desires. Giving your employees to have a safe space where they feel like they can be appreciated and heard is crucial in employee retention.  

While employee performance reviews should keep your employees on the right track – it should also be a time for you to gain valuable insight on why they are content with their jobs – and why they aren’t 

3. Identifying Areas to be Improved on

After receiving feedback from your employees on areas that concern them, make an effort to fill up skill gaps and come up with solutions

For example, if your staff is having issues with the load of work that he/she has and feels that they are unable to execute their tasks well because they are overwhelmed at work, take this feedback into consideration and make it a point to redistribute the workload after employee review session. In the next session, check back in with your employee to see if they are faring better.  

It is important to remember that employee performance reviews are beneficial two-ways, it is both for your company and your staff. Making substantial changes to improve job satisfaction can prevent a high employee turnover rate, create a better working environment and more engaged employees.  

If you haven’t already been having regular employee performance reviews, it’s your sign to start now.  

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