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As all good managers know, performance reviews are essential in the modern workplace. They help both managers and employees to demonstrate their targets and key performance indicators (KPIs), discuss career progression, share their thoughts and identify areas that need improvement.

This recurring process is an effective management process and helps businesses to promote and develop the values, principles, and competencies that are required to ensure the best team outcomes. When done poorly, it’s little more than a box-ticking exercise that seems to suck both time and resources. However, when done right, they are one of the best tools for developing an employee's career, as-well-as maintaining high-performing and successful teams.


Why every organisation needs a Performance Review process

Here are three major reasons why every organisation, irrespective of its size or industry, needs to have a robust performance review process in place.

They ensure good communication

With the pandemic we’re in unprecedented times, so it’s never been more important to check in with your employees regularly. Working from home or other locations presents even more communications challenges than normal.

As a rule of thumb, there really shouldn’t be any surprises during a performance review. Both parties should know the rating they’re on target for, salary increases, promotions, any gaps, if targets have been met, etc. This means there needs to be ongoing performance management discussions throughout the year with clear and concise feedback provided. This keeps everyone communicating and on the same page.

They promote an understanding of common goals

Managers will often come at reviews from the business’s perspective, whereas employees will have their own singular personal perspective. For example, an employee may not have hit their KPIs due to market factors, they have done everything right but the results just aren’t there for them, and possibly others, which will impact their rating. From the business’s perspective they haven’t met their agreed responsibility, but from the employee’s perspective the market changed.

Throughout the year, consistent performance management (both down and up) will help businesses understand what happening with clients and markets, so they can manage the business and their personnel more effectively and fairly, helping to retain and motivate staff.

Determining numerical ranking/ratings

Rating systems, like the bell curve, help to give the business, HR teams, and delivery teams a shared vernacular around performance. Does someone met, exceed, or extensively exceed expectations, based on their level, and benchmarked against peers? And how does this relate to remuneration, promotions, assignments, etc?

Whilst there are some problems with this type of approach, it does provide a demonstrable rigour for all involved.

Need more… here are five ways to measure performance:

  1. Activity levels;
  2. Teamwork or virtual teaming;
  3. Contributions to team meetings;
  4. Adhering to plans; and,
  5. Adapting well to new roles.

Helping your employees build successful careers is as important as hiring quality employees in the first place. Invest in your employees, and the whole team will reap the benefits. At CGC, we genuinely want to help our audiences recruit and retain the best staff. So, if you don’t have a planning template, we have you covered.

We’ve developed a free career planning template that you can download. It will specifically help you to easily summarise your staff’s career goals.

Connect with CGC

At CGC Recruitment, our specialist team of experienced consultants specialise in all major infrastructure, engineering, and construction sectors. We help clients throughout Australia deliver their projects by attracting the best candidates and talent.

To discuss a recruitment matter, connect with CGC today and one of our experienced consultants will be happy to help.