Building an Effective Employee Performance Review Process

August 12, 2019||inBusiness Insurance|business insurance, employee performance, human resources, performance reviews

In talking with other business peers, I noticed that the fall is performance review time at many companies. Performance evaluations often seem to be a dreaded process either because of the time it can take to prepare if you have a large staff or sometimes it’s a time for frank discussions that some managers have been putting off.  With that in mind, I sat down with our HR Manager to discuss performance evaluations and ideas for making the process less painful for everyone involved.

Building an Effective Employee Performance Review Process
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

Experts believe that at least 50% of employee performance problems occur because of a lack of feedback.

Annual reviews can be a beneficial development tool to identify, measure, encourage, evaluate, reward, and improve employee performance. Documenting employee performance is an essential human resources management practice that can help avoid misunderstandings that could lead to legal action.

A performance review should NEVER be a surprise.

Feedback between the employee and manager should be ongoing and then formally summarized at set intervals. The process must be viewed as fair by employees. It should be balanced for an overall positive experience with constructive feedback included. Many organizations ask employees to complete a self-evaluation as the first step, which provides valuable insights into how the employee views their performance.

Tips for success.

There are many elements of a successful performance review process, but here are a few tips:

  • Establish well-written job descriptions outlining essential functions, standards, goals, and expectations.
  • Prepare in advance and plan for the process.
  • Link company strategy to specific objectives and results.
  • Evaluate yourself before your employees: How is your management helping or hindering performance?
  • Be objective and honest, using specific and accurate examples.
  • Remember to evaluate performance, not personality.
  • Identify development opportunities.
  • Ask if the employee has questions or concerns.
  • Put mutually decided objectives in writing.
  • Show that you’re invested and that you care.

Whatever your performance review process, it must be completed on time to reflect a sense of importance and urgency.

Top-level support is a critical key to a successful program. While this seems obvious, lack of support is the main reason performance evaluation systems fail to succeed. Supervisors and staff can quickly sense if top management fully supports the process or gives it lip service. Upper management must demonstrate in words and actions that it is determined to see the process succeed.

Additional Resources:

Conducting Performance Reviews
Why Organizations Do Employee Performance Evaluation 
Ten Tips for Conducting Employee Performance Reviews 

Read Other Blog Posts

People celebrating

Hosting Holiday Parties Responsibly: Tips for Personal & Business Gatherings

While it’s easy to get caught up in the fun, taking some simple precautions can prevent mishaps and protect you from unexpected situations. Here are some practical tips for hosting a safe and successful holiday party, with a focus on being prepared.
Read more
Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Read more
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Read more
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Read more
Massahusetts DIA Seal

MA Dept of Industrial Accidents New Notice Requirements

The Department of Industrial Accidents (DIA) has revised the Notice to Employees and has established new notice requirements. On or before September 16, 2024, all employers must utilize and repost the revised Notice to Employees poster.
Read more
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Read more
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.
Read more
Hacker

Cyber Risk Exposure Scorecard: Assess your risk

Cyber incidents have become increasingly prevalent, impacting organizations of all sizes and industries. As these incidents continue to rise in both cost and frequency, organizations must take steps to address their cyber exposures and bolster their digital security defenses.
Read more
Shipping dock

Exposing Double Brokering: Safeguarding Your Freight Against Deceptive Schemes

In the landscape of global commerce, the logistics industry serves as the backbone ensuring that goods reach their destinations efficiently. Yet, amidst the complexities of this intricate network lies a threat known as double brokering, a freight fraud scheme that can leave companies vulnerable to financial loss and operational disruption.
Read more

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.