Performance reviews are more important than ever…so why the excuses?
Edition 6 - Managing risk as teams go back to work
We are continuing our theme of helping managers identify and deal with some of the people management challenges arising in Covid disrupted workplaces.
We are focusing our blog on some common issues, with an opportunity to download a few short, practical guides or key steps from our well-established Management Development Program (MDP) which may be of value to you or your teams.
Performance reviews are critical even in a c-19 world
The 8 excuses managers cannot make
As we flagged in a recent post, our plan was to focus this edition on another key element of the role of the manager: how to handle effective employee performance and satisfaction reviews.
What has caught us a little by surprise, is being asked: “Do we really need to do this? Surely the current situation renders performance reviews unnecessary?”
Our answers of course are: “Yes, you do” and “No, it doesn’t.”
We are reminded of an article we wrote last year on the excuses for avoiding performance reviews - particularly in a pandemic world - and we revisit parts of it here to reinforce what a critical responsibility managers have to connect with each of their team members and what enormous opportunity the performance review process presents to do this.
“Managers have a critical responsibility to connect with each of their team members and the performance review process presents an enormous opportunity to do this.”
8 Excuses for avoiding performance reviews
and what to do about them (or they will come back to bite you!)
Let’s consider eight excuses we hear and the risks associated with allowing such excuses and poorly managing employee performance reviews – and suggest how to minimise such risks to your business.
Excuse 1 Use C-19 as a reason not to discuss employee performance and satisfaction
Excuse 2 Pretend Covid has broken the cycle of all normal practices
Excuse 3 Not talk about your organisation’s performance
Excuse 4 Use C-19 as a reason to accept poor performance of individuals and side-step difficult conversations
Excuse 5 Set Job Descriptions aside as there’s no “BAU” during Covid
Excuse 6 Pretend that your “One to Ones” are enough
Excuse 7 Ignore performance reviews because there’s no pay rise
Excuse 8 Avoid them because there’s no End of Financial Year Bonus this year
Let’s look at each excuse, the likely impact and some tips for action.
EXCUSE 1 - USE C-19 AS A REASON NOT TO DISCUSS EMPLOYEE PERFORMANCE AND SATISFACTION
We’ve seen the impact of C-19 on business vary dramatically this past year and a half: maybe you’ve lost some staff, had many on Job Keeper, some on reduced hours or temporary tasks, others working remotely: it doesn’t feel fair to carry out reviews in such circumstances. Right? Wrong!
Remember that, at any time, the primary purpose of the performance review should be to improve performance and satisfaction. It is a mechanism for managers to provide feedback to staff and continue to encourage increased performance and satisfaction. It also gives managers a chance to share key messages about how the business is faring.
RISK: For many, this mechanism may be more critical to business performance and retention of key talent now than in any other period. It would be unfair on all parties not to do performance reviews: and some key players may not stick around for “next time” and with a labour shortage looming that’s a real risk to your business.
TIP: Don’t make it too hard: just do it.
You owe it to yourself and to your employees to set up time with each one to hold essential conversations. Such conversations might be in a different format from usual and goal setting may be more challenging but it’s worth remembering the importance of the basics.
EXCUSE 2 - PRETEND COVID HAS BROKEN THE CYCLE OF ALL NORMAL PRACTICES
So Covid happened…then Easter and Christmas still came along, every birthday, every work anniversary, and other life milestones be they happy or sad… BAS returns, Monthly Accounts, P&L, Cash Flow reports, Debtor Days, Stock Takes…The cycle of events and good business practice continues and so should your employee performance review cycle.
It is not a one-off thing, it is a critical business process and it is not fair on anyone – managers, employees, the business or its shareholders – to bypass it. Nor is it prudent.
Organisations have responsibility to manage performance and to let their employees know how they're going, and sending a regular pay through is not enough feedback in and of itself.
RISK: Recognition matters. If they don’t get it from you then they might go elsewhere to find it.
Babies cry for it and young men die for it.
TIP: Show leadership in this strange time and give confidence – your employees need a sense of security and stability and recognition that they matter.
“Show leadership in this strange time and give confidence – your employees need a sense of security and stability and recognition that they matter.”
EXCUSE 3 - NOT TALK ABOUT YOUR ORGANISATION’S PERFORMANCE
Some businesses have really struggled during this pandemic: others are going gangbusters and are almost embarrassed by their success. Whichever category your business falls in, or even if you are simply enjoying a period of stability, you owe it to yourself and your employees to share this information.
We know that the longer a period with no information, the more people will make up their own stories.
RISK: By choosing not to have performance reviews and not mention your business progress to employees, and their role in it, you risk missing a wonderful opportunity for managing the message you really want to communicate – and there is a good chance the grapevine will be resounding with messages you don’t want.
Maybe the word will be that the business is really struggling (we’d better start looking for other jobs); or that the business is keeping all that stimulus money for itself (they don’t care about us); or that you’ve succumbed to Excuse 2?
TIP: Take the lead, engage and communicate – you have an opportunity to influence individual contributors to continuously improve your organisation’s performance.
EXCUSE 4 - USE C-19 AS A REASON TO ACCEPT POOR PERFORMANCE OF INDIVIDUALS AND SIDE-STEP DIFFICULT CONVERSATIONS
Tempting as it may be, it’s no good pretending poor performers don’t exist.
Maybe it is your own doing and perhaps you’ve already fallen foul of Excuse 5 and set aside your JDs during Covid and not shared with employees what you are expecting of them during this period, so they don’t even know what good performance looks like? Or maybe the employee has just decided they care about other things more than work during this time; or perhaps they are unable to cope with the new demands of remote working? There could be many and varied reasons.
It is your job to find out why performance is poor and to do something about it – in fairness to you, your business, the employee and the rest of your staff. The performance review process is the perfect opportunity to do this.
RISK: If you ignore poor performance you miss the opportunity to secure positive outcomes such as: improved performance of an employee – or the opportunity for them to be better satisfied in someone else’s business; improved satisfaction and productivity of colleagues working with that employee; and improved performance of your business.
TIP: Take responsibility – ask good questions, set clear expectations and follow through.
EXCUSE 5 - SET JOB DESCRIPTIONS ASIDE AS THERE’S NO “BUSINESS AS USUAL” DURING COVID
In times of stress it is tempting to default to “head down other end up” and assume everyone knows what’s needed of them. As we all develop new ways of working together (or apart!) it is tempting to say: “Let’s throw our Job Descriptions (JDs) out of the window.”
RISK: If we fall for this excuse, we risk so much: team members mistakenly working on the wrong stuff in the wrong way and at the wrong time – and maybe starting to look somewhere else for their performance and satisfaction?
TIP: Bring those JDs out - dust them off, review them, tweak them and then use as a powerful framework to help guide teams through this challenging time. (And to help, we’ve included a link to a previous post with 7 simple steps to write a job description.)
Investing time with each employee to discuss their performance and satisfaction can be much less daunting and much more useful if you are both working from the same set of expectations. Your employee is more likely to be able to share examples where they are finding satisfaction in their work – or not – and any development they need. You can clarify your expectations and standards; and you both may learn that some parts of the job may no longer be needed or new responsibilities should be added.
Even if you cannot manage a full performance review with your staff at present, at least work with them to do a “Covid Marie Kondo” tidy up on their JDs and everyone will benefit.
EXCUSE 6 - PRETEND THAT YOUR “ONE TO ONES” ARE ENOUGH
“I’ve been checking in with everyone regularly during this period so I don’t need to do a full performance review.”
Whilst we agree that regular catch ups are invaluable, and we certainly encourage them, on their own they are not quite enough. They need to be supplemented by a sense of closure and reset.
We talk of the performance review process being a cycle. Maybe you feel your cycle has been interrupted this year and you’ve committed Excuse 2?
RISK: By missing the opportunity to set time aside with each employee for reflection and planning, you miss an important chance to fully understand each person’s level of performance and satisfaction, their development needs and more… Just as importantly, you also miss an opportunity to acknowledge their contribution – or their gaps – and share your own expectations for the next period.
TIP: Take every opportunity to know your staff and help them to help you succeed.
EXCUSE 7 - IGNORE PERFORMANCE REVIEWS BECAUSE THERE’S NO PAY RISE
For years we have reassured clients that the performance review is only one element contributing to any pay review and they agree with relief. So, we smile when clients now say: “Surely there’s no point doing our performance reviews because we can’t give a pay increase right now?”
RISK: As with several of the excuses identified above, our response is that, for many organisations, performance reviews may be even more critical to business performance and retention of key talent than any salary adjustments right now.
This is a very significant opportunity to take action and communicate very important messages: if you don’t do this you may be blindsided.
TIP: Try viewing it as an unexpected benefit to set aside the distraction of pay reviews and have discussions focussed on helping each individual become more effective in their job and gain greater satisfaction from their work; and, consequently, improving your organisation performance.
EXCUSE 8 - AVOID PERFORMANCE REVIEWS BECAUSE THERE’S NO END OF FINANCIAL YEAR BONUS THIS YEAR
As with Excuse 3, this can come back to cause more harm.
Employee Satisfaction surveys frequently report that the payment of an EOFY bonus has little or no impact on employee performance or satisfaction – yet many organisations continue to pay them.
RISK: Employees report that they don’t know what they need to do to earn them, that they see other employees who don’t work as hard as them also receiving a bonus so why should they continue to put in the effort themselves if everyone is treated the same? And didn’t some companies use Job Keeper to give the bosses or owners bonuses? Negative motivation.
“So, if you can’t pay a bonus this year, treat it as bonus opportunity for you to try something different.”
TIP: Try sharing time with each of your direct reports, ask them what has been good about the past year, what has been frustrating, what have they learned, what can you do as their boss to make it easier for them to deliver good results, what priorities and standards should you agree for next year, what can you do to support them in their own development and how can you work together to improve their performance and satisfaction. Have the back of an envelope ready – not to slide them a monetary bonus but to jot down your combined ideas so neither of you forget them. Say thank you.
And you’ll just have completed a very effective performance review.