Creating a More Effective Performance Review Process

Video Transcript

Hi everybody. Okay, so let’s talk performance reviews today. Performance reviews historically have not been very popular and they haven’t really been that effective, and I think some of the
problems with performance reviews are, one, employers typically have these reviews on an annual basis. So when the meetings happen the supervisor is trying to review the last twelve months of their performance, so we’re really focused so heavily on the past and it’s not about the future. So that’s the first problem, and I also think this is often times not a two-way conversation. It’s really just the supervisor giving out this feedback of the past, so that doesn’t work and then also HR and leadership really pushes that these things are done on an annual
basis. And there’s a deadline, and it becomes so much more of a task and really focusing on getting it completed and sent in on time. It really doesn’t feel about giving great feedback and moving forward and improving and I think that is a big problem with traditional performance
reviews. And then, of course, that will damage the employee morale. And another part that damages morale is when you, you know, use these rating systems. I mean you work so hard as an employee over a year’s time, and then you’re told you’re a “two”, or a “three”, or a “four.” Or
your satisfactory or unsatisfactory. That can be very, very demotivating. So I think that we can ditch the old performance review method and try something new, and I don’t think it would be that big of an obstacle to do so. I think it’s just really about providing more feedback. I think there’s four things that you could do. Number one: you could ditch the rating system altogether and just not use the rating system, the number system, or the unsatisfactory/satisfactory system. Number two: you could sit down with new hires and create goals from the very
beginning, short and long term goals. Number three: you need to give feedback, more often. So weekly, bi-weekly, or monthly touch bases or check-ins to provide feedback and to hear how the employee is doing. And then, number four: instead of doing it annually, having performance conversations on a quarterly basis can be very, very helpful. So if you treat your employees as the unique and valuable employees that they are; the people that they are. It will pay off hugely in the end. Alright, that is it for today. Have a great one. Hi everybody my name is Carrie Luxem and I have dedicated my entire career to helping and supporting restaurant operators, and I started my business – Restaurant HR Group – where over the last eight years or so I have been partnering with restaurant groups throughout the country helping them set up their HR and people systems and processes. So now I am absolutely thrilled and excited to be partnering with Kabbage. They’re an online lending solution for small businesses and they work heavily with restaurants. So stay tuned, I’m going to be talking about a whole lot of other things and we’re gonna have a whole lot of fun around here. So we’ll be talking about HR and leadership and culture and recruiting and hiring and a lot more, so stay tuned. And if you need more information on how Kabbage can help you with some of your financial needs, reach out to them at Kabbage.com/expert and they will certainly be able to tell you how they can help you. Alright, thank you so much for listening and I will be back soon. Thank you.

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