As the annual performance review season approaches, managers, leaders, and executives everywhere heave a collective groan. Think that’s an exaggeration? Consider that one study found that only 6% of CEOs think their performance appraisal system is useful, and only 13% of employees and managers find it useful. A whopping 88% of respondents in that study said their current performance management review negatively impacted their opinion of HR.
Consider also that new managers may be facing their first round of reviews from the other side of the table. Leaders who have never had direct reports or been charged with conducting performance conversations may not know where to begin. With the ongoing transition to remote and hybrid work, workforce disruptions, and an environment full of uncertainty, even experienced leaders may be reluctant to embark on this annual journey.
Clearly, few people look forward to performance review season. Senior leaders and HR professionals can help ensure leaders and managers are fully prepared to conduct great performance conversations that set a strong foundation for success in the coming year. Here are six ways you can prepare your managers for performance discussions.
Whatever your organization’s review process, ensure new managers know how to navigate it. Whether new to the company or the role, they may not know the specifics of how your organization conducts reviews. Do they need to initiate anything? What are their specific responsibilities within the system? How do they communicate results to HR?
It may be helpful to have a short training session for anyone who must conduct reviews at your company for the first time. If you use any performance review platform or system, be sure these leaders know how to use it properly.
Most communication happens during the listening phase. Managers will get better outcomes from their reviews if they know how to actively listen. Physically turning toward the other party, repeating or paraphrasing to ensure comprehension, and asking clarifying questions are all marks of active listening and demonstrating the genuine intention to understand.
Active listening is more difficult in a remote environment, so managers must adapt some of the physical indicators to the new medium when reviews have to take place via phone or video. Advise them to avoid composing a reply or writing notes when the other person is talking. If notes are necessary, tell the other person up front so the team member doesn’t assume the manager is doodling or allowing attention to wander.
For much of the modern business era, a performance review has emphasized assessing for results. However, this focus misses out on behaviors and values that feed overall performance. While it may be essential to establish that specific projects were completed or certain results were achieved, it’s also important to examine how those goals were accomplished. Were the results worthwhile if they were only accomplished through a series of unhealthy or unhelpful behaviors, or if the team member had to sacrifice commitment to company values?
Encourage managers to take a “big picture” approach to performance reviews and evaluate the behaviors and values of each team member. How do their individual contributions contribute to the company culture?
Studies repeatedly show that managers and bosses who show interest in helping team members achieve their short- and long-term career goals help improve employee experience and retention. When people feel like they have a path to career success, they are more likely to stay engaged and employed with the company.
Every review should include a conversation about development—and not just with the goal of “fixing” performance deficiencies. Managers should discuss training and development opportunities and short- and long-term career goals with each team member. Include a conversation with each employee about possibilities for the coming year. What do they want to learn or improve?
The human brain is wired for bias, but that doesn’t mean it needs to be part of performance management. Remind managers of the natural tendency toward bias and encourage them to manage it during performance review season.
Of course, as more organizations continue to move toward hybrid and remote work models, the danger of proximity bias also increases. Remind managers that proximity does not automatically equal productivity or competence, and reinforce company commitment to remote and hybrid models where appropriate.
One of the best things a manager can do at the end of a performance review is solicit feedback from the direct report. Something as simple as “How can I do my job better?” can open the door to positive and constructive conversation in both directions and provide good feedback for the leader.
Annual performance reviews may never be the highlight of everyone’s year, but with the proper preparation and perspective, they can positively contribute to future activities. Good performance conversations can set a solid foundation for success in the coming year.
The experts at Stewart Leadership can help your managers and leaders position their teams for long-term growth and success. To learn more, contact us.