Well, it's getting to that time again, where the end of year is coming near :(! What I always remember in my career in Human Resources is putting together performance appraisal schedules for the company and reminding managers to set time aside to conduct a performance appraisal by the end of the year. It was quite a stressful time, but with careful planning it didn't need to be.

It is quite different in a small business environment though. I am hearing how small business owners do not always have formal performance appraisals in place and wonder how are you helping your employees to develop, grow within the company by accepting both positive and constructive feedback?

When you don't have a formal documented performance process in place, you may not always remember to comment or discuss performance with your employees. I hear, "I let them know how they are doing when I have some issues come up and I let them to know how to fix them." Or I may hear, I let them know with a smile by commenting that they did a good job on that project. But, what about when you forget to let them know? How are you ensuring that you have an opportunity to let your employees know how they are doing?

Well, a structured process - at least a simple meeting not more than an hour - 2 times a year can really help put everything in perspective. Aren't your employees worth that time?

Here's a sample plan:

Performance review for 2016: Meet 2 times in 2016 - Mid June 2016 and Mid December 2016.

Here's what a simple Performance review can look like:

1. State your understanding of your main duties and responsibilities this past year.

2. State your understanding of your objectives and deliverables for 2015? How did you measure against your objectives and deliverables (State each and put a rating: poor, satisfactory, good and excellent).

3. What do you consider to be your most important successes/achievements in your role this past year?

4. What do you consider to be opportunities for improvement in your role this past year?

5. What actions could be taken by you to improve your role? What support from your manager do you require?

6. What aspects of your job do you like and dislike ?

7. What elements of your job do you find more difficult to complete? Why? What have you done to resolve that difficulty?

8. What sort of training/work experiences/projects would benefit you in the next year? These skills can include soft skills and technical skills.

9. What do you think your 2016 Objectives should look like ? We will work on this together and finalize our plan by the end of the year.

10. Are there any other comments you would like to make?

Sign off ________________: Manager __________________ Employee and Date: _____________

Now, the first one may be really hard to get through and the conversation may not run as smoothly as you like but here are some tips that can help you and your employee get the most of the performance appraisal:

• Provide the employee a copy of the performance appraisal to review and complete ahead of time. As a manager, you will be doing the same.
• Ensure a meeting of 1 - 1 1/2 hours is set up at least 1 month in advance so the employee and you can prepare.
• Set aside a quiet, uninterrupted space to have a discussion. Your phone should be on vibrate or do not disturb.
• Keep a log of each employee to write down fact based observations ie. emails from clients, etc. that will form a basis of your performance feedback.
• Smile, create an atmosphere where respectful, open-dialogue can be exchanged.
• Be open to feedback both as a manager and an employee. Don't get defensive.
• Thank the employee for their efforts in the past year at the beginning of the meeting and at the end.
• Provide a completed copy of the appraisal for the employee and set aside another meeting to set objectives for 2016. Objectives for 2016 should be set no later than the end of January 2016.

I hope this blog has helped you.

If you need HR assistance in your organization in setting up a formal performance appraisal or have any questions, please do not hesitate to reach out to us.

Kind regards,

Lean Creative HR Solutions