The Ultimate Guide to Successful Monthly Employee Performance Audits

Performance reviews are a critical aspect of any successful team or organization. When done well, frequent performance appraisals provide employees and their bosses with insight into productivity, areas of improvement, and job satisfaction.

Unfortunately, most companies take performance reviews for granted once a year, which makes for wasted opportunities. Performance review, more strategically, will help organizations create a culture of continued learning, involvement, and performance improvement.

Here’s a best practices guide to delivering results-oriented, regular performance reviews for both the company and employees.

1. Establish Specific Objectives

It’s most essential to having a well-defined, measurable performance review. Employees have to know exactly what they will be expected to do and how performance will be measured.

Creating concrete, manageable goals that are consistent with company goals helps employees know that they are all working towards the same end and understand how their work helps the company succeed.

These should be decided by managers and workers jointly at the start of the review cycle. They might be associated with completion of a project, numbers of sales, development of talent, or collaboration.

Make sure these objectives meet SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).

2. Encourage Clear Communication

Scheduled performance feedback is a time for honest, two-way communication. Managers need to spend this time hearing employees’ feedback and concerns and what their job plans are.

Workers must also be given the opportunity to provide feedback about how the work is going, problems they encounter, and areas where they are in need of additional support.

It’s not an exclusive, manager-only performance review. “If workers feel listened to and appreciated, it creates trust and interaction. Open communication through review can help improve the relationship, the collaboration, and the company’s morale.

3. Provide Recurrent Reward and Acknowledgement

Having to wait for a review every year to give you feedback is counter-productive. The workers enjoy the regular and immediate feedback that lets them tune performance throughout the year.

Performance reviews also provide managers with the time to appreciate successes and remedy mistakes before they grow.

Recognition is a powerful motivational tool. And when employees get recognized for work and achievements at yearly reviews, they are rewarded for good behavior and morale. Instead, fixing problems early helps ensure workers are given the support they need to be successful, preventing longer-term problems from forming.

4. Dedicate on Learning, Not Only Testing

An efficient performance review goes beyond a check-in with the past, but it’s about looking forward and expanding employees. Each performance review must involve a discussion about career growth, whether it’s learning a new skill, stepping up to a new level of responsibility, or getting ready for a promotion.

Managers must provide practical instructions on how to be a better employee and to advance their professional career. For example, you may provide professional training, mentorship or training. Seeing that the company cares about them as an employee also helps them stay invested and motivated.

5. Make and Prepare a Record of the Review Procedure

In order to keep things fair and even, managers should prepare for each performance review by writing up the employee’s development, challenges, and achievements. When you have documented evidence, you avoid misunderstandings and have a very good basis to discuss with the review.

Employees must also be invited to attend with their own ideas and reflections on performance. This makes the review more of a two-way street where everyone involved helps to build a discussion around how the employee is developing and adding value.

6. Make an Improvement Plan

At the end of a performance review, the employee should have an actionable roadmap for the next cycle. The improvement plan must provide details on improvements planned, goals for the future and resources or help the employee may require. Employees stay aligned, and they work toward their objectives, when they have a roadmap in place.

Final Thoughts

Performing performance reviews are an effective method for gaining employee motivation, performance improvement, and organizational growth.

Set specific objectives, have open communication, provide feedback and appreciation, develop, and be ready for every review. This way, organizations can establish a systematic, effective review process. When employees feel supported and appreciated, both the person and the company thrive.