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The big companies are doing it, should I?

The big companies are doing it, should I? (Last Updated On: August 7, 2015)

Watching others perform is spectacular; your apprentice mastering the art of julienning or your employee spreading your company’s vision in front of a large congregation. Mix that up with the fear or doubt you get when a client is lost or your employee’s goal was out of their reach. For some employers, these feelings are hard to express to staff, which is why performance reviews are so important – to acknowledge the good in your staff and perhaps some areas of improvement.

Performance reviews are used to maximise your employee’s strengths and assist you with any areas of development. Staff appraisals, when successful, maximise the effectiveness of individuals.

Performance reviews can be seen as a rewarding and an evolving experience, or sometimes, a “soul-less and soul crushing exercise”. Large companies are now taking the approach of scrapping performance reviews saying that taking the time once a year to let an employee know if they are performing effectively is too taxing, expensive and ineffective. Adobe, NAB, Deloitte Accenture, and Juniper have all recently made the change to eliminate annual performance reviews. Donna Morris, Adobe’s Senior Vice President of People and Places, said annually it would have taken “80,000 hours to conduct performance reviews on all staff”, this is the equivalence of 40 full time positions employed at the company. With these statistics against employers, Employsure is the answer. We act as your external advisers and can assist you in implementing a performance review policy without tying up your resources.

Employsure’s response to the big business change

To scrap or not to scrap? To frequently review or maintain annual review? These are the questions on the lips of many of our clients. So, let us share some tips on how to think logically and make a decision based on the needs of your business.

  • Reflect on your current management style; How do you interact with staff? Perhaps you already do constantly conduct reviews with staff.
  • How do you determine and measure staff key performance indicators (KPIs)? This will impact the occurrence and style of review.
  • The dynamic nature of small businesses; the fluidity of your business may mean that a busy period could impact the occurrence or time spent on performance review.
  • How many staff do you employ and what is your relationship like? Are they like family and openly communicate concerns and are very approachable. Or would they withhold what is not working for the business or for them personally?
  • Business structure; how many managers do you have? Employers should be hiring managers with their finger on the pulse and empowering them to review staff performance not only annually, but on the completion of a project, when an assignment is reviewed or when key performance indicators are established.
  • Do you have the support? The rapid, driven, multi facet and technological nature of work today means that employees need reviewing more than ever and more frequently. Do you have the resources? If it is just you, you don’t want to spend your entire day reviewing your staff as this could significantly impact productivity.
  • Why not engage your staff on how they would like to be reviewed? Encourage your staff to ask questions and for them to share preferences. Would they opt to change and adopt a new style or would they maintain the old.

Employsure implements staff appraisal schemes and acts as your own HR department. When employers need assistance, we are there to solve any employment relations issues. In some businesses, there isn’t the need for HR professionals however, there are always HR requirements, regardless. This formal opportunity to approach staff about their performance can be key and we are there to assist our clients every step of the way.

Employsure’s advice and supporting document consulting teams can simultaneously aid in the development of your staff. Meaning staff development, performance and review can be recorded and decided upon.

If you would like to discuss the benefits of performance review techniques for your business, please call Employsure today on 1300 651 415. Employsure offers advice and the correct procedures to efficiently aid employers in developing their staff, which ultimately benefits your business.

Sourced: Adobe LinkedIn profile, Forbs website and Huffington Post.

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