How You Can Make the Most of Employee Performance Reviews

Making the most of employee performance reviews can be challenging. Many companies do not have an effective process to provide constructive feedback in a structured manner to improve employee performance.

The purpose of performance reviews is to create an accurate, actionable evaluation of an employee’s performance and develop their skills in line with their job duties and responsibilities. The goal is to identify areas in which employees can improve, practice their skills, and develop into high performers.

Fortunately, you can follow these best practices to help streamline the process of planning and conducting employee performance reviews. Following these recommendations provides structure to have these important conversations.

Follow these steps to make the most of employee performance reviews.

Clarify the Employee Performance Standards

Let employees know well in advance the standards and expectations for their performance reviews. Then, they can understand what they working toward and can perform accordingly.

Clarifying which employee activities are most important helps show the impact of on-the-job behaviors. Demonstrating the causal relationships helps show which behaviors led to positive outcomes and which behaviors led to bad outcomes. Then, employees can focus on the relevant behaviors to reach the desired outcomes.

Describe Specific Observations of Employee Performance

Share specific, descriptive feedback about the employee’s strengths and weaknesses and concrete suggestions to improve their performance. Include examples of behaviors that led to positive outcomes during the review period.

Support Open Discussion About the Employee’s Performance

Encourage the employee to respond to your feedback. They can provide additional insight into why they behaved a certain way or how they can improve in specific areas.

Perhaps the employee requires training and coaching to develop certain skills and improve their performance. Or, the employee might need additional incentives to increase motivation.

Develop an Employee Performance Improvement Plan

Discuss specific steps the employee can take to improve their performance. Include relevant resources, deadlines for improvement, and measurements of success. Then, schedule a time to follow up.

Follow Up on the Employee Performance Improvement Plan

Meet with the employee at the scheduled time to review their performance improvement plan. Evaluate whether the employee reached their key performance indicators (KPIs) for successful change.

If the employee reached their KPIs, discuss the improved performance and provide a relevant reward. Conversely, if the employee did not reach their KPIs, talk about the behaviors you observed and how they impacted performance. Uncover the causes of the underlying issues and how you can help resolve them. Create another performance improvement plan with a timeline to follow up.

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Four Ways to Stay on Track with Your 2024 Company Goals

Staying on track with your 2024 company goals supports business success. Knowing whether employees are reaching scheduled milestones increases the odds of goal achievement.

Holding employees accountable for reaching company goals encourages workers to continue to attain their milestones. These methods can help.

Four Tips to Reach Your Goals

1. Ensure Each Goal Has Milestones and Deadlines

Clarify that managers and employees have copies of their individual and team goals, milestones, and deadlines. Also, ensure managers and employees understand what should be accomplished, when each task is due, and the impact on the organization.

Remind managers and employees they are responsible for completing each of their milestones and goals according to the schedule. Also, clarify you will be periodically checking in to track employee and manager success in reaching your 2024 company goals.

2. Regularly Review Progress Toward Company Goal Attainment

Ask managers to track their individual and team progress toward your 2024 company goals. Then, regularly check in with managers to evaluate how well they and their teams are reaching their milestones.

If a manager is not staying on track with their goals, talk about the underlying reasons. Work with the manager to resolve the issues, provide additional resources and support, and get back on track. Ask managers to do the same for their employees who get off track.

3. Modify Company Goals as Needed

Regularly evaluate your 2024 company goals to determine whether they remain relevant throughout the year. If your strategic plans change, your company goals might change as well.

Communicate with the relevant manager about the changes to your company goals as quickly as possible. Let them know exactly what is being changed, why, and who is impacted. Then, ask the manager to communicate the changes to the relevant employee. Follow up to ensure the changes were implemented correctly.

4. Provide Recognition and Rewards for Company Goal Achievement

Recognize and reward employees at all levels who attain a company goal. Let these employees know how much their efforts and results are valued and appreciated. Consider providing a bonus, pay increase, or promotion to help your business grow.

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Partner with Casey Accounting and Finance Resources to hire accounting and finance professionals who can help reach your 2024 company goals. Start the process today.

January 2024 Accounting and Finance Salary Survey Available!

Casey Accounting & Finance Resources just released its January 2024 salary data for the fields of accounting and finance. As the job market continues to evolve, we hope this will prepare you for your business growth through the remainder of 2024 and beyond.

If you would like to view the salary survey, please click this LINK to download!

With compensation and salary trends changing throughout the year, candidates and clients should have this valuable information for fair negotiations in the job market.

For more information, here are some useful articles:

And here are a few more trends and insights to consider:

Casey Accounting & Finance Resources can help financial professionals who want to learn more about what salary expectations should be. We have compiled our salary survey list with updated facts and figures, including job descriptions for more the most requested accounting and finance positions in the Chicago metropolitan area.

If you would like to view the salary survey, please click the link to download!