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In my years of running a business, a recurring question always seems to arise as to whether or not we should conduct employee performance reviews. I confess that I have typically been an advocate of some form of performance review, as it is a chance for the employee to review themselves, to get some honest feedback from me and for both of us to set goals for the coming year. However, I’ve been thinking a lot about performance reviews lately and am questioning my logic.
The ultimate goal for any business owner should be to bring out the very best in each and every employee. More importantly, we aspire to cultivate an employee who is self-directed, takes initiative, understands and is on board with the company vision and is allowed to articulate and execute their ideas as to how to move the company forward (being in alignment with the vision).
Well, it seems that in performance reviews, business owners/management typically set specific, measurable goals for their employees. They often don’t allow for collaboration and/or out of the box thinking. If anything, reviews and direction like this can make employees stagnant and not positioned to give you their all.
We should want employees to feel like they own their own destiny. It is important to create a culture where your team is encouraged to hold one another accountable, to work collaboratively across teams (not just within their existing team), to be able to learn and grow personally and professionally, and to know that they are in a space where their new and exciting contributions are welcome additions to the organization.
If employees are allowed and enabled to perform at their very best, to be in an ongoing development and learning environment, they will thrive, and so to will your business. And I am not simply referring to financial prosperity, but you will also be encouraging a company culture in which everyone is more apt to be jazzed emotionally, spiritually and often physically.
So why then do we need to employee performance reviews? The general consensus seems to be that nobody really likes them and most employees would prefer receiving constructive feedback on an ongoing basis. This approach allows people to embrace and enhance their contributions to the business and regularly reinforces their commitment to elevating your business to the next level.
What are your thoughts on employee performance reviews? Let us know.
By Blair Koch
