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Performance Reviews Help Create Great Employees
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Article 1: Small Employers Benefit From Performance Reviews
Suppose your business has only one or two employees. Does that mean you don’t need to conduct performance reviews?
Far from it.
“Performance appraisals are even more important for the owner-operator of a small business than for a big corporation,” says Dick Grote, a Dallas-based performance management consultant.
If you have only two employees dealing with the public, he notes, an underperforming worker will negatively affect 50 percent of your interaction with customers. “That’s a disaster,” says Grote.
Consider, too, that you’re likely competing with mid-sized organizations of maybe 20 to 100 employees where one underperforming worker will not have the same negative impact. Suddenly it becomes clear how much your market position depends on effective performance assessments.
At the small organization, the owner can watch employee performance closely, adds Grote. “When people know what’s expected and they know how they are doing, they can do exactly what the owner wants, and that is powerful.”
The small organization has one more benefit over the larger competition: A more streamlined performance review process.
“You do not have to spend a lot of time designing special forms, outlining procedures to be used by multiple departments, or getting bogged down in the other costly administrative burdens characteristic of larger organizations,” says Grote.
That lets you more quickly engage with your key people on an effective, one-on-one basis.
To design a performance review, start by identifying what really makes the difference in employee performance. Grote suggests that you focus on two things for each employee: First, what results do you want? Second, what behavior
do you want?
“Those two factors make up human performance,” says Grote. “Combined, they define how well a person does a job.”
It’s possible to have good results and bad behavior, cautions Grote. The aggressive personality of a go-getter sales person, for example, may rack up eye-popping short-term sales while irritating suppliers or even turning off potential customers.
“You can demand that your people be courteous, cooperative and helpful,” notes Grote. “Indicate that such behavior is not just a request and not only what you would prefer, but is a condition of employment.”
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Performance Reviews Help Create Great Employees
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