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  • Jessie I.

How to create a performance management review - 20 Dos and 20 Don'ts

Updated: May 30

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Time-consuming annual performance and remuneration meetings frequently focus on scaling an employee's performance to fit a distribution curve. Short-term incentive programs can drive higher levels of performance rather than fixed salary increases when combined with a robust performance framework and frequent feedback discussions. Real-world market conditions and an employee's competitive value are increasingly being taken into consideration by businesses when determining compensation. Extrinsic motivation is not as good a predictor of job performance as intrinsic motivation, according to research. Understanding what employees really value and developing remuneration strategies that are based on this information is essential for any business that wants to motivate its workforce. In general, variable incentives could reward more than just performance from employees. Positive behaviors and employee contributions that regularly drive business growth can be reinforced.

Performance Review involves agreeing on what the individual needs to do to achieve objectives, raise standards, improve performance, and develop the necessary competencies with the manager. Additionally, it establishes priorities—the most important aspects of the job that require attention. Key performance measures and indicators are established and agreed upon. There is also a plan for personal development, which includes a learning action plan for which individuals are accountable with support from their managers and the organization; self-directed learning, project work, job expansion, and job enrichment are all included. It focuses not only on the current position but also on continuous improvement.

The performance review can include work goals, targets project task goals and behavioral goals.

Ongoing role or work goals: every role comes with built-in goals that can be expressed in a role profile as key result areas.

Targets: These define the measurable outcomes that must be achieved, which can be measured in terms of output, throughput, income, sales, service levels, cost reduction, and lower reject rates.

Projects and tasks: goals can be set for completing a project or task by a certain date or for achieving an interim result.

Behavior – while competency frameworks typically define behavioral expectations broadly, individual behavioral expectations may also be defined under the headings of the framework. Competency frameworks may deal with core values-related behaviors like teamwork, but they often turn value statements' aspirations into more specific examples of desirable and undesirable behavior, which can help with performance planning and evaluation.

Performance Management Dos

1. consult/involve;

2. provide instruction;

3. communicate (the procedures and advantages);

4. Obtain support from upper management;

5. ensure relevance to the requirements of the organization, business, and stakeholders;

6. get line managers to take ownership;

7. Keep things simple;

8. make sure the goals and procedures are clear;

9. get line managers to take ownership;

10. monitor and analyze

11. conform to culture;

12. carefully plan and prepare;

13. coordinate with other HR procedures;

14. conduct a pilot program;

15. Make the connection to the reward clear;

16. as if it were a business procedure;

17. Be open-minded regarding the scope and rate of change;

18. specify the requirements for performance;

19. Make the process obligatory.

20. Ensure the performance review is seen as a business procedure not an HR process.

Performance management Don’ts

1. Don't just make it a paper-heavy, form-filling exercise;

2. Don't make it too difficult;

3. Don't rush a new system in;

4. Don't underestimate the amount of time required for introduction;

5. Stop rearranging the system;

6. Don't assume that managers have the necessary skills;

7. Avoid linking to pay;

8. Avoid blindly following other company’s performance management process;

9. Don't forget about training, consultation, and communication;

10. Don't assume that everyone would like it;

11. Don’t expect employees to be pleased when they receive criticism for performing their duties;

12. Don't assume that what seems obvious and logical to you as a human resources professional also applies to managers and employees;

13. Don't waste time with a complicated procedure;

14. Don’t entrust HR with the initiative;

15. Don’t assume that managers possess the necessary abilities to manage performance in an equitable and fair manner;

16. Don't underestimate how much work is required;

17. Don't expect it to function immediately;

18. Don’t expect to be beneficial for all;

19. Don’t focus on quantity instead focus on quality

20. Don’t assume the process will remain forever, adjust to the demand of the market and well-being of your employees.

Creating a performance management plan would be different for every company. You must consider your company culture,vision and mission and your employees. There is no single recipe for a good plan. However, if you follow the above mentioned steps you could avoid making many changes and disappointments.

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