How to Conduct Your Annual Performance Review Process

At this time of year many organizations are beginning their annual performance review process. As you start this process you might find the following information to be useful.

• Send a note out to all your managers giving them a specific timeline, i.e. as to due dates when payroll needs the salary increase information, when salary increases will be effective, when the forms must be returned.
• If you developed a salary increase matrix be sure you explain to your managers how it works and any specific guidelines you want them to follow.
• Notify all employees they need to complete a self appraisal regarding their performance during the last 12 months. This self appraisal should include how they performed against their job description and goals/objectives plus their views on their development needs. Once this is completed they should give a copy to their manager. Managers should review this document prior to completing the employee's review.
• Ask your managers to be sure they get input from other departments if the employee was involved in other projects outside their own department.
• Managers should be sure the setting is right when they conduct the actual performance review. Here are a few things to consider;
• Schedule the meeting in advance and set aside at least 1 hour.
• Conduct the review in a place other than your office. Use a conference room, go out to breakfast or lunch.
• During the meeting, don't allow phone calls, emails, etc., this time is for communication without interruptions.
• During the meeting be sure to review the employee's self appraisal, other managers input, and your input regarding the last 12 months of performance. Give examples where you can.
• Once the meeting is over the manager should complete the actual performance review form noting the appropriate comments that came up during the one to one meeting.
• After the review form is completed ask the employee to sign the performance review form and make any comments and return it to you. Before sending the final form back to human resources give the employee a copy of the form.

Just remember the important outcome from a performance review is "communication." You want to be sure all parties leave this process with an understanding of what was done well, the areas needed for improvement, what development is needed and what both parties will do to drive success in the future.

Jim Geier
President and Founder
Human Capital Consulting Partners