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The idea of a performance review strikes fear in the hearts of many employees and evokes groans from managers and leaders across a variety of industries. As HR practitioners, we know better than most that many people dread these formal, annual or bi-annual meetings, which can translate to a cagey, uneasy conversation that makes it hard for both sides to get across what they want. That in turn makes it more difficult for top performers to reach their potential, and for those who need to lift their performance to reach those standards. More than that, however, the annual performance review structure has one glaring limitation: they aren’t frequent enough to assess current performance accurately, instead they focus on positive and negative points that have built up over a long period of time. This leads to them generally rewarding or restricting employees based on past behavior instead of adapting as the person changes and evolves. Sound familiar?

In today’s dynamic, fast changing business environment, the challenges of using an annual/bi-annual formal review process are far more pronounced. If a top performer is unhappy and feels like their performance isn’t recognized, or is unsure of their career path within the business, they can go online and be looking at new roles on a job board in the blink of an eye; often much quicker than booking a time to discuss this with their manager. All of a sudden, once or twice a year to discuss your professional standing doesn’t seem like enough!

The key to ensuring this situation doesn’t occur is to reassess your process and ensure the leaders within the organization have regular, honest, brave conversations with your people. We’re already seeing some organizations move towards this kind of approach, scheduling monthly informal catch ups with employees to communicate on what’s going well, what isn’t and where they may need some development. Sound good? Here are a few ways you can implement this approach at your workplace whether you’re the leader driving the performance conversation or the HR professional driving the process and providing your leadership team with practical tips they can quickly execute.

Check Your Surroundings

Understandably, it can be difficult to move away from structures that have been in place seemingly since the beginning of time. The idea of setting a time once or twice a year, and sitting in an office with a checklist of things to run through, is ingrained in the psyche of so many employees. This can be uncomfortable, especially for employees who might be stressed about the outcome, but the idea is that this is just “how it works.”

We’ve already talked about making these catch ups more regular, but where and how they happen can be just as important as when. Being in an environment that the employee is comfortable with can go a long way to setting the scene for a more productive conversation. When they feel comfortable, they’ll find it easier to be honest and thus, work towards a constructive outcome.

Reconsider the traditional review environment. Instead of the office, take a quick trip out to a local café with a relaxed atmosphere for an informal conversation. Alternatively, you can walk and talk, or maybe you don’t need to change anything, and the office is exactly the right place. It all depends on the preferences of the employee and where they feel at home, as this is crucially important to getting the conversation off on the right foot. Just as important as comfort, is privacy and confidentiality, so always be mindful of the proximity of others who may overhear your conversation.

Clarify Your Pathways

One of the most common frustrations we hear from candidates when discussing their performance review process is the impact that it can have on staff attrition if it’s not done effectively. When analyzing exit data, many departing employees express that the questions they have around the progression of their careers and their individual development were left unanswered, prompting frustration and eventually, resignation – despite many organizations having initiatives in place to cater to these ambitions.

The big issue here is that many employees may not even know that these development or succession programmed exist, especially in large, complex organizations. Your regular catch ups are a great place to make it clear that these avenues are available to your people, and if they identify a specific goal they want to achieve, then pointing out how you can help them accomplish that will create a great deal of goodwill.

Remember, employees aren’t just human capital – they’re seeking both professional and personal understanding, so a personalized approach to their development is key to getting the best out of them. Make the conversation meaningful by asking about where they want to go, and see how you can go about facilitating that.

Frequent Check-Ins

Another great thing about having these regular catch ups is that it opens up the door for more of a two-way discussion. Although the key focus of a performance review is still to appraise performance, conducting regular stay interviews can give you a good idea of what is making your people stick around. This in turn can help you to adjust and tweak strategies internally, making life better for your current team as well as attracting more top talent.

This can do wonders for morale in the office too. As an employee, being able to have your say and discuss how to solve problems within the business can make you feel far more valued by the organisation. That’s why it’s important for these catch ups to be afforded to top performers as well as those who may require extra development. Managers often skip over those who are doing well in favour of those squeaky wheels who need more urgent attention, and understandably so. However, it’s also understandable when those top employees don’t feel valued because of this, and leaders can’t be shocked if they end up wanting to move on.

In Summary

With the world of work changing so rapidly, adjusting the way we conduct performance reviews to create a better experience for everyone involved, and that includes the HR practitioner, is crucial. By catching up with people regularly in an informal setting facilitates more of a two-way dialogue, which enables leaders to have more holistic conversations with their people about their performance, the business, and how they interact.

What do you think? Is the traditional performance review dead, or is there still a place for it in your workplace? Feel free to get in touch if you want to have your say, or if you’re looking for more ideas on how to overhaul your performance review process.