There are 2 reasons why business owners never sit through the performance reviews of their employees. The first is when they want to discipline someone, and the second is when they think someone deserves a pay increase. However, what they don’t know is that they have so much to gain when it comes to scheduling employee performance reviews on more than just these two instances.
When you sit down with your employees more than once every year, you are technically reminding employees what you expect of them in a way that motivates them to achieve this. It is possible that you may have begun to notice changes in the employee that you would like to discourage. This is the perfect time to do that before it escalates into something serious, resulting in you having to call in crisis control.
Regular performance reviews give employees the perfect opportunity to give you feedback on what your employees need. It helps you in correcting bad behaviour before it ultimately affects the bottom line of your company. You cannot just send in an email that says the employee is not meeting the set standards. You must review performance and set a training period for them and encourage them to attend it as part of their professional development which will help them throughout their career.
When Firing an Employee
In case you are faced with the task of terminating an employee, you can always offer them proof that they had an idea that this was coming. Your case is made strong by the regular performance reviews that you conduct so that the employee does not challenge your termination.
Set New Goals for Over Achievers
Certain employees perform above and beyond the set standards. The regular performance reviews give you a chance to set higher goals for them, and you must encourage them to advance in their career at your company if you really believe that they have the potential to do great things. If a person thinks he/she is wasted in a place where their talent is not recognized, he/she is likely going to move elsewhere.
Appreciate the Hard Work
It is important that you praise employees who consistently do a great job. By offering positive feedback on a regular basis, you will also make your employees feel like they are being truly appreciated. Your win is that now the employee is going to be encouraged to work harder and shall remain loyal towards you as they are made to feel good about their hard work.
Their Feedback Counts just as Much
Mostly, employee performance reviews are created to give feedback to the employees, and employees are also encouraged to share their thoughts about the company as well. It is important that you listen to the concerns and comments of these people. You must also consider using the valuable information you now have to improve operations.