Business owners seem to dread the obligation to provide their employees with reviews each year.  Even if one will not come with a raise (which is likely this year given the economic environment), it is a good idea to conduct these annually.

First, employees want to know how they are doing.  Your employees are your most valuable assets and so it is important to give them the feedback and to get their feedback so you can continue to build mutually rewarding relationships with your employees.  Many employee stay with their employers even if they can make more money elsewhere because they feel they are engaged and a part of a business. This impacts the bottom line because losing a productive employee costs a lot.

Second, performance reviews are a necessary part of keeping adequate employee records from an employment law perspective.  This is especially key if you have performance issues with some employees.  Here are some tips to help with the overall process of having a review:

1. Do not compare an employee with others within your business.

2. Be very specific when discussing both the good and the bad.

3. Do not make light of issues and problems for fear of confrontation.

4. Do not let personal bias affect an evaulation.

5.Ask the employee for his or her feedback on what is working and what is not.

6. Record a summary of the review and keep employee jacket (term for files) for every employee.

Most importantly, make sure you actually do these reviews and provide your employees with the feedback they deserve.

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Filed under: Employment Matters

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