Create better conditions for employee development with better performance reviews

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Often a performance review is an annual conversation between the employee and management that aims to create a dialog between employee and manager to discuss the current work situation and development opportunities for the employee.

However, many people - both managers and employees - dread the annual performance review, and studies also show that performance reviews don't motivate employees or make them work better or more.

This may be because the performance review has become more of a routine conversation to get through rather than one that focuses on employee satisfaction and development.

The difficult performance review conversation

Both managers and employees find performance reviews difficult. It can often feel uncomfortable or unmanageable. This can often be because the performance review isn't constructive and doesn't work as intended.

The employee may even feel that the conversation is limiting or a form of surveillance, where the employee is being held accountable for the year's performance.

However, that's not the point of the performance review - quite the opposite. It's an important conversation that should create value for the employee and the manager and insight into the employee's work situation in order to create improvements and development.

Why the performance review doesn't work

The reason why appraisals don't work as intended is usually because the conversation has become too routine.

• Where do you see yourself in 5 years?
• How do you rate the internal collaboration
• How do you rate the collaboration with your manager?
• Do you have any future career aspirations?

These are questions that can be asked during the annual performance review. However, the questions are too general and routine, and are often asked out of habit rather than to gain insight into the employee's well-being and opportunities for future development. This can make the conversation feel like a waste of time.

Other reasons why appraisals don't go as planned can be:

• Lack of understanding of the interview process
• Poor communication between manager and employee
• Change of manager
• Lack of insight into employee development from the manager
• Lack of trust between manager and employee

These are just a few of the reasons that can influence why appraisals don't work as intended.

If the manager has recently been replaced, if there is a lack of trust or if there is no constructive two-way communication between manager and employee, this can have a big impact on the outcome of the conversation.

At the same time, it is also of great importance for the outcome of a performance review that both manager and employee understand the purpose of the interview and that both parties enter into a dialog with each other in order to discuss the individual employee's well-being, work situation and development opportunities that will result in concrete goals and initiatives.

Finally, it's crucial for a good performance review that the manager aims for the employee's well-being and development rather than checking the review off the list. Here, managers also need to understand what drives employee development and how to best promote employee motivation and performance.

Tips for a good performance review conversation

For the appraisal interview to work as intended, it's important that it doesn't become a chit-chat or a routine conversation with standard questions to tick off the list.

A good performance review requires a lot from you as a manager. Below is a short to-do list to help you create the best starting point for a good performance review.

To-do list - 5 tips for a good employee interview

• Prepare yourself and your employee

Before the interview, make sure you prepare for the interview with each of your employees. Make sure to schedule the appraisal interview well in advance and ask the employee to prepare for the meeting. You may want to send some talking points for the employee to use as a starting point. Also, make sure there is plenty of time for the interview so you don't have to rush through the conversation.

• Listen and ask questions

During a performance review, it's important that you as a manager don't take the floor from the employee. You are in control of the conversation, but the employee should do most of the talking. You should therefore be the listener in the conversation and ask good questions that uncover areas of the employee's well-being, motivation and development. Ask open questions for the employee to answer, which can form the basis for new initiatives and goals.

• Give praise and positive affirmation

The performance review is a great opportunity to praise an employee for their performance. However, that doesn't mean you shouldn't praise your employees on a daily basis, or that you should wait to praise until the performance review. But in a hectic workday, praise and positive affirmation can sometimes be forgotten. That's why the performance review is a great opportunity to praise your employees' performance. Give specific feedback on what you think the employee has done well.

• Give constructive feedback

Just as you should give praise and affirmation, you should also give feedback to the employee on areas for improvement. Tell them where you think there could be room for improvement and how you can work together to make those improvements. It's important to be constructive and specific about your expectations of the employee to avoid misunderstandings or bad vibes.

• Build a trusting relationship with the employee

A trusting relationship is something that is built over time, and a high level of trust between employee and manager is a good starting point for a good performance review. If you haven't yet built a solid trusting relationship, the performance review can also be a great opportunity to strengthen the trust between manager and employee. As a manager, you can help give the employee a good experience of the appraisal by giving praise and positive affirmation, providing constructive feedback, listening and generally appearing interested, sincere and showing goodwill towards the employee.

Prepare the appraisal interview with HRM-Nordic MUS

The five tips above can help create a great performance review conversation that leads to happy employees and better results. While the annual performance review is a great opportunity to have a dialog with your employees about development opportunities, it is recommended to have ongoing conversations with your employees to ensure continuous development and well-being.

Whether your company has annual performance reviews or ongoing employee, team or departmental appraisals, it's a good idea to prepare with an appraisal template.

HRM-Nordic MUS is a tool where you can build your own interview templates for each employee, team or department. In the tool, you can send the agenda and get the employee's consent prior to the performance review so you're both well-prepared for the review.

The appraisal template is a great tool for handling and managing the appraisal interview and for preparation, so you have the best starting point for a good performance review with your employees.

Would you like to learn more about HRM-Nordic Development or any of our other solutions for your HR department? Contact us today at 70 26 32 25 or contact us here.