4 Ways Business Management Can Improve Performance Reviews

Accounting Services in Tulsa


When was the last time you gave a performance review? Business management and administrators are tasked in giving these reviews several times a year. Yet, how updated is your process? Is it effective or does it seem out-dated?

We came across information that could help you determine what to do about your review process.The popular HGTV program, Love it or List it, highlights couples that are considering renovating their house or selling it altogether. Is it time for you to consider loving or leaving your review process?

Perhaps from where you sit, there is absolutely nothing wrong with your performance review process. In fact, you haven’t heard anyone complain at all.

In this case, no news is not always good news. Robert I. Sutton, a Stanford University management professor, has this to say about performance reviews – “In the typical case (of performance reviews), it’s done so badly, it’s better not to do it at all.” (see his article) 

In fact, companies like Netflix do not even offer any performance assessments. While this is the exception, still 95% of organizations still claim to have a review process in place.  canva_business_management.jpg

4 Areas Of Your Performance Review To Improve On

1. Performance focus on evaluation or development?

It would seem that in order to appraise performance one would need to evaluate that performance and its effectiveness in the position. Yet, some reviews offer little more. 

Improvements in this area would seem to beg a focus on developing your employee and staff. A survey of 700 high performers from a range of companies found that lacking a conversation in development left employees thinking about a strategic exit instead from the company. 

Instead, focus on having several conversations over development throughout the year in areas such as goals, skills development, compensation, etc.

2. Is your process too formal?

Reviewing performance with forms and check-marks in boxes can make the experience seem more about going through a required process rather than helping the employee.

Because the process can seem so bureaucratic, meaningful conversation can be lost to a deadline. Not only that, senior staff also report dreading the discussion of employee performance as well.

To avoid a too formal process in your evaluations, try collaborating with your senior staff involved in giving the review to create a better process and improvement plan for the company. Work on new training programs to help staff gain confidence in delivering more meaningful one-to-one development meetings, constructive feedback, and being more supportive in the development role.

3. Does your review identify individual goals?

To increase employee engagement and connectivity, it’s important to align business goals and vision statements with that of the employee. Research shows that employees who know where the company is wanting to be in their vision plan are more motivated in their own development to be a part of that process.

Try using content and communications of other employees and how their success in the company aligned with the vision of the employee as well. Storytelling is a great way to engage staff in a way that makes them feel more appreciated from their point of view. 

4. Are you appearing to make the performance rating too fair?

Some organizations report that their ratings give off the appearance of being manipulated in order to produce an equal outcome. 

In some cases, these ratings can be tied to compensation, leaving the employee feeling the review is less about performance and more as an attempts to reduce salary cap or bonus. 

Try increasing collaboration and participation with the employee in their own review scores. By providing clear guidance on how the scores are obtained, employees can improve in motivation and show less concern with unequal treatment. 

You might not be at a point where you want to scrap your entire review process and be like Netflix. However, there are areas you can improve on. If you are needing more ideas on how to improve your performance review process, seek out the consultative review process from our HR group at any time!


LUXA Enterprises specializes in hrm services, outsource accounting, and payroll services . We match up with ideal candidates for services by allowing small to mid-size businesses increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!

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