1467: 3 Things You Should Do to Give Killer Performance Reveiws by Michael Mehlberg on Business Leadership

[00:00:00] This is Optimal Work Daily.

[00:00:02] 3 Things You Should Do to Give Killer Performance Reviews by Michael Mehlberg of MichaelMelberg.com

[00:00:09] Oh, the dreaded performance review process. You either hate it or you hate it. Am I right?

[00:00:15] It's not that you think they're unnecessary. After all, even if you don't give performance reviews now, somewhere in the back of your mind you know you should.

[00:00:23] It's that they take time out of work, cause unnecessary stress, and don't seem to be very effective at changing employee behavior.

[00:00:31] And isn't changing behavior for the better the whole point? So should we just ditch them altogether?

[00:00:36] My answer to that is a resounding no. When done properly, performance reviews can be a welcome source of feedback for your employees.

[00:00:43] They can lead to deeper discussions about responsibilities, career goals, and organizational improvements.

[00:00:49] So instead of throwing them out, let's implement three simple tips to get them right.

[00:00:53] Though there are thousands of ways to run performance reviews, and just as many articles to read on the topic,

[00:00:59] I've found these three tips gave me the most bang for my buck. After five plus years managing employees,

[00:01:05] these were the three things that made the most difference.

[00:01:08] Tip number one, take your performance review process out of that tuxedo and give it some shorts and sandals.

[00:01:14] Here's how most performance reviews go. Every year, gather 12 months of employee data, feedback from peers,

[00:01:21] and force everyone to do a self-assessment for a month. During that month, we don't talk about the process.

[00:01:26] We maybe indicate that performance is tied to compensation, and we schedule a one-hour meeting labeled performance review.

[00:01:33] Stress levels shoot through the roof until the big meeting, at which point everyone leaves the review

[00:01:39] wondering why they bothered to take the time in the first place. Sound familiar?

[00:01:43] Well, instead of making your performance review process a once-a-year event, why not break it up into multiple, smaller events throughout the year?

[00:01:50] It may seem like more work, but doing a performance review once a quarter or twice a year can make the entire process far less formal.

[00:01:58] On top of that, it will reduce stress on the employee and create less stress for the business owner,

[00:02:02] who doesn't have to compile a full year's worth of performance info, which can be a daunting task.

[00:02:07] Why wait to give an employee 365 days of feedback in one fell swoop?

[00:02:12] Isn't feedback far more effective when given more often?

[00:02:15] The answer is yes.

[00:02:17] Stop giving performance reviews once a year.

[00:02:20] Move to a quarterly or bi-yearly performance review process, and you'll find them to be far more productive and less stressful.

[00:02:27] Tip number two. How much time should the review meeting be?

[00:02:31] Exactly the opposite of what you think.

[00:02:34] Most managers spend all their time focusing on low performers.

[00:02:38] They give them extensive feedback on what they're doing wrong and what they should do to correct it.

[00:02:42] On the flip side, they spend only minutes with their top performers, telling them there's nothing you need to work on, or you're doing great, keep up the good work.

[00:02:49] Why? Your low performers aren't pushing your company the way your high performers do.

[00:02:54] Your low performers are actually costing your high performers and yourself more work.

[00:02:59] So if your best and brightest are the ones giving you the best and the most results, why not spend the time with them?

[00:03:05] Give them more goals, more responsibilities, and more praise.

[00:03:09] Talk with them to understand what they love and don't love about the job.

[00:03:13] Figure out how they can contribute more to the organization and compensate them for it.

[00:03:17] Most high performers are eager to take on more responsibility in exchange for bigger opportunities or higher compensation.

[00:03:23] Low performers, on the other hand, are usually only interested in doing just enough to keep their job.

[00:03:28] So spend the time with your A players.

[00:03:31] For your B and C players, keep it short and to the point.

[00:03:34] Tell them exactly what you need them to do, when you need them to do it, and what they can expect if they meet or don't meet their objectives.

[00:03:41] Tip number three. Let the politician in you shine.

[00:03:45] Okay, I'm not suggesting you turn performance reviews into some political event.

[00:03:50] What I am suggesting is what every politician out there claims to want more of.

[00:03:55] Transparency.

[00:03:56] How do performance reviews and transparency overlap?

[00:03:59] Well, most of the time they don't.

[00:04:01] Most of the time the performance review process is hidden from the employees.

[00:04:05] The steps along the way are only discussed when an employee needs to do something like turn in a self-review or request peer reviews.

[00:04:11] But this just increases the stress of it all.

[00:04:14] When your employees don't know what's going on behind the scenes, they start to imagine.

[00:04:19] And when your staff's imaginations run wild, stress levels rise, rumors start, and inappropriate expectations are set that can never be met.

[00:04:27] Instead of letting that happen, be as transparent as possible with the process.

[00:04:31] Tell everyone how the process will work, what you expect along the way, and when every milestone for both you and your employee will occur.

[00:04:39] Tell them why each step of the process is necessary, and who will see each piece of the review process.

[00:04:45] Over-communicate. Over-indulge.

[00:04:47] Let them know anything and everything that's going on, including how the performance reviews will affect their salary, bonuses, or any other compensation.

[00:04:55] Then, leave your door open.

[00:04:57] When employees see this process isn't something to worry about and that they can talk to you anytime, they'll feel far less stressed and can carry on with their job.

[00:05:05] It's time for a change. Now, not later.

[00:05:09] Maybe you don't have a performance review process, but you know you should.

[00:05:13] Maybe your current review process is stressful, distracting, and feels useless.

[00:05:18] That no longer needs to be the case.

[00:05:20] Take whatever process you have in place and implement these three simple changes.

[00:05:25] Break the process up into multiple, smaller events over the course of the year.

[00:05:29] Focus on your best employees and take less time with the rest.

[00:05:32] And be transparent. Really transparent.

[00:05:36] None of these changes is a wild departure from any performance review process that I know, but implementing them should drastically reduce stress for everyone involved, including yourself.

[00:05:46] Furthermore, you'll start getting exactly what you'd always hope to get. Results.

[00:05:55] You just listened to the post titled, Three Things You Should Do to Give Killer Performance Reviews, by Michael Melberg of michaelmelberg.com.

[00:06:03] This show is sponsored by BetterHelp.

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[00:06:59] That's betterhelp.com slash workdaily.

[00:07:05] And big thanks to Michael Melberg for letting us share his work.

[00:07:08] He is a family man, an entrepreneur, business professional, fitness nut, organization freak, productivity junkie, and the author of Home Early.

[00:07:18] That book is about destroying distraction, becoming powerfully productive, and finishing work before dinner.

[00:07:24] You can get the first chapter of his book for free with a bunch of worksheets to go along with it right on his site, michaelmelberg.com.

[00:07:32] And Melberg, by the way, is spelled M-E-H-L-B-E-R-G.

[00:07:37] So come check that out and show him some support, and I have his site linked in this episode's description.

[00:07:43] And that should do it for today.

[00:07:44] I thank you as always for being here and listening all the way through.

[00:07:48] And I'll be back with you tomorrow for the Monday show where your optimal life awaits.