Consider throwing out Annual Reviews

Sian and Krista recently attended the National HR Summit in Auckland. One of the sessions was an open panel discussion about Performance Review standards which we thought would be valuable to share with you. 

Instead of Time Consuming Reviews

A common theme was the need to have more frequent 'conversations that matter' rather than the obligatory annual reviews that is more about ticking the box than it is about Employee feedback and goal setting. Especially as we see more of the millennial generation coming into the workforce who are typically motivated by regular feedback and achievable short term goals rather than the old school annual review.

Performance Reviews for Authority Cases

Charlotte Parkhill, Employment Lawyer from Kensington Swan, gave examples where performance reviews were submitted as evidence in the Employment Relations Authority cases. Often rulings for unjustified dismissal related to performance were found in favour of the Employee due to mediocre feedback (the dreaded 3/5 rating!) instead of genuine assessments. She was quick to reassure us that the court will back the Employers if you have followed process with honesty and transparency. Having more frequent, cyclical feedback sessions builds trust between Managers and Employees and more open and comfortable conversations where constructive feedback is less awkward. 

Questions to Consider

It's also important to look at not only WHAT the Employee is achieving but HOW they are achieving it - are they maintaining a healthy work/life balance? Are they conducting themselves in line with the values of the business when dealing with customers, suppliers and colleagues? Our recommendation is to conduct at least three monthly, less formal check-ins, in a coffee catch-up style. This will give you a feel for where the Employee is at on a professional and personal level, as we all have outside pressures than can affect our performance at work. 

Do make sure you have performance concern conversations sooner and don’t let these fester. Also make sure you review position/job descriptions annually.

If you’d like to know more about how you can get more value out of performance measurement or how to introduce more regular check-ins with your team, give People Passion a call 09 299 2525.