One of the best ways to grow any business is to build a team around you with strengths that allow you as the business owner to stay focused on the vision and growth of the company. Keeping team members motivated is key to them owning responsibility and driving growth. Performance appraisals or reviews can be one way to accomplish this if used strategically. Reviews are often met with apprehension by the person receiving it and inconvenience for the person giving the review because of the extra paperwork and the time it takes away from regular business. But, when you consider the importance of reviews to all concerned, it can help to create a more productive and positive work environment.
Let’s take a look at the many benefits of performance appraisals.
The ideal relationship between team members is cultivated daily and promotes collaboration and healthy interaction. When there is a good rapport between team members and those they report to, the performance appraisal conversation allows for more open, natural communication, which benefits all individual parties and the business.
It is always easier to start off a performance appraisal by recognizing a person’s strengths and contributions. Regardless of the overall performance, there can always be something positive to say. This helps to put that person at ease and reinforces the value of their contribution to the business. Everyone has something they bring to the table. This part of the review can also be a time to chart measurable accomplishments since the previous evaluation, if applicable.
The natural next step is to discuss any areas where there may be lack of improvement. Identifying opportunities and strategies to increase performance growth can help to put this typically uncomfortable conversation in a positive light. There should be no surprises when it comes to employee reviews if expectations are consistently communicated clearly. This is part of that open communication within an organization.
Setting goals for the next benchmark period can help to provide motivation and encouragement. When a team member knows that they are supported and feels empowered, the chances for success increase. Providing personal or professional growth opportunities such as training seminars or mentoring can be just what someone may need to carry their progress to the next level. And, frankly, knowing that the company has a vested interest in your growth can go a long way.
As you can see, the importance of reviews for team members absolutely has a direct effect on having a successful business. When an organization cultivates open, constructive, and supportive communication, the work environment—and the business itself—has greater potential to thrive.