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Making performance reviews more productive and less stressful.(selected topic)

Business Credit

| November 01, 2007 | Messmer, Max | COPYRIGHT 2007 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Performance reviews can be a powerful tool for motivating team members to higher performance levels and improving relationships between managers and employees. Still, many of those receiving and giving appraisals find them to be stressful. This is because the evaluation process invariably creates additional work for managers, and the very nature of the process--the need for a candid discussion of an individual's strengths and weaknesses--can put both employees and supervisors into situations that most people find uncomfortable.

Despite pressures both parties may feel, the long-term benefits of effective performance reviews are proven. In a survey commissioned by Robert Half International, 67% of employees polled said they consider performance reviews valuable and, of those, 40% see them as very beneficial. Here are some tips to help you ensure an all-around productive and relatively low-stress process:

Get an early start. Although it may be natural to procrastinate what can be a time-consuming task, fight the urge to delay completing performance reviews. Since most appraisals involve a written as well as a verbal component, begin documenting your staff's strengths and weaknesses early. Keep in mind that your credibility is on the line when you complete evaluations--as well as the career trajectories of your employees--so it's important to go the extra mile to ensure the accuracy and integrity of your assessments.

Track performance throughout the year. Another way to make things a bit easier on yourself at appraisal time is to maintain notes on your employees' performance throughout the year, rather than trying to reconstruct events and actions that took place during the past 12 months.

If you don't already do so, create a folder for every employee, either in electronic or paper form. As significant developments occur throughout the year, file important performance-related emails or jot down notes about team members. For example, if you notice one of your credit clerks volunteering to help an overburdened colleague, be sure to document the teamwork you observed. Likewise, if an employee consistently misses deadlines for updating credit profiles on their portfolio of accounts, note each time this occurs.

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By tracking staff members' actions throughout the year, you also avoid the common pitfall of overemphasizing recent events and neglecting to consider accomplishments or performance deficiencies that occurred early in the review period. Recording positive or negative performance issues as they come to light should not be a substitute for real-time feedback, however. When employees shine at a task, reinforce their efforts by offering immediate praise and encouragement. On the other hand, if a staff member is struggling to meet expectations, address problems when they occur rather than withholding your feedback until a formal appraisal. It is appropriate though to refer back to performance highlights or problems at review time and, especially, to revisit the progress that's been made since earlier discussions. This approach prevents employees from being blindsided at evaluation time and allows you to more accurately assess the full range of their performance.

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