Turning Over a New Leaf: Why Performance Reviews Matter

I'm writing this as the Northeast just had one of those fake-start-fall weeks. To me, fall feels like the real new year—a distinct sense of closure and new beginnings. It's my absolute favorite season, a time when I'm inspired to refresh and embark on new projects.

Businesses are now deep in planning mode, assessing what needs to be accomplished by year-end. Personally, I'm mapping out a website facelift, and many of my clients are contemplating performance reviews. This is the perfect time to plan out this process, ensuring a smooth year-end because, let's face it, once Thanksgiving rolls around, time seems to fast-forward, and we're at the end of the fiscal year!

For those who've never ventured into performance reviews, it might seem daunting or even like a distant goal. You might think, "I only have 2 employees; we're not there yet." However, the reality is that if you have one or more employees, conducting at least an annual performance review is essential. There are numerous advantages to conducting these reviews, benefiting both employees and the company.

ReSetting Expectations: When was the last time your employees had a refresh on their job responsibilities? Have their responsibilities evolved since they were hired? A set review schedule is an excellent opportunity to realign expectations and ensure everyone is on the same page. It also provides a timeline to evaluate your needs for the role and the team, and assess whether you have the right people in the right positions. From an employee perspective, clear job expectations are essential; they want to know what's expected of them.

Communication: Providing employees with a designated space to share their thoughts and ideas can yield surprising results. Inquire about their thoughts on the past year and any challenges they've encountered. As a leader, it's essential to address not only the positives but also any concerns or areas for improvement. By being clear about why certain aspects are important and how they tie to the company's success, you can proactively address potential performance issues.

Engagement: What are your employees' career goals? Now is an excellent time to discuss career paths and what additional training or learning is required to advance their careers. Investing in employees is investing in your business. They may have additional interests that can fill gaps on your team or create diverse career paths.

Encouragement: Positive reinforcement is priceless. Everyone needs to know if they're on the right track and if they've done exceptionally well. I'm currently training my new puppy, and positive reinforcement is the key. Encouraging good behavior motivates them to exceed expectations.

There's no one-size-fits-all approach to performance reviews. If you haven't implemented them yet, I recommend starting with an annual review. Depending on your business and its needs, you might consider transitioning to biannual or even quarterly reviews. The goal is to maintain ongoing performance discussions and provide a platform for questions, reinforcement, challenges, and improvement from both employees and leaders.