It’s a standard business practice among large corporations, and even smaller businesses: annual performance evaluations. Many businesses hold on to the tradition of conducting annual performance evaluations to review employee progress and goals. However, 30% of performance reviews decrease employee morale rather than improve it.
To ensure your employees receive constructive feedback in a receptive manner, here are a few other options for providing feedback you can consider:
I encourage business owners to provide constructive criticism as soon as their employees experience difficulties within their role. This way, they can take appropriate steps right away to improve their actions rather than continue down a slippery slope of poor performance, which can in turn negatively impact your business. For example, if one of your employees seems slightly too blunt with a client, consider speaking with them immediately after the meeting to discuss how to better communicate with clients.
This suggestion of providing timely feedback applies to providing praise as well. Although it may be appreciated at any time, your employees will have a precise image of how to continue their good work if they can clearly remember the work you’re commending.
Clearly Define Expectations
Before we hire employees, we have an idea of the tasks they’ll perform and the role they’ll serve in the business. Sometimes, especially in smaller businesses, the roles and responsibilities of an employee can shift quite quickly based on the needs of the business. If there’s been any change in the roles or responsibilities of an employee, it’s important that you communicate any changes in expectations that arise as a result of a shift in responsibilities.
You can improve your employees’ performance even further by discussing with them how to meet the expectations of their role rather than to simply assign the expectations. Much of business success is rooted in two-way communication.
Ask for Their Feedback
Although intimidation isn’t your intention, some employees believe receiving feedback to be a daunting ordeal. To help them be more receptive to feedback, try asking them to comment on themselves first. If they are already mindful of their workplace struggles, this allows them the opportunity to inform you of the steps they are already taking to improve. You can then offer further guidance, as needed. The goal of this method is for your employee to have a conversation with you rather than feel they’re being criticized.
To find out how you can better provide employee feedback or learn how other businesses approach it, contact me today to discuss joining a TAB advisory board!
As a business owner you may hold to the traditional view that employee turnover is equated with failure. However, the days of working your entire career at one company and retiring with a defined pension plan, gold watch and a testimonial dinner are long gone. Employee turnover is part of the rapidly changing business environment that many of you face today. In fact according to CareerBuilder’s Candidate Behavior Study, 75% of full-time employees are either open to or actively searching for new job opportunities.
Employee turnover can provide many benefits.
An Improved Workforce
Every company has a percentage of employees who are subpar or have toxic personalities. However, many retain these employees and as a result lose top performers who are overworked and underappreciated. Jack Welch, former CEO of General Electric, implemented a policy of annually evaluating staff in order to “purge” and replace the bottom 10% of performers. The reality is that even employees who are performing adequately can become complacent after a time and are frequently resistant to change. On the other hand, new employees are excited about their jobs and work hard to make a good impression. They bring a fresh perspective and new skills, which may ultimately improve efficiency and profitability.
I’ve outlined below a few ideas that I hope will give you pause to possibly reframe your views on employee turnover in terms of being a benefit to your business.
A Boost to Morale
New employees can breathe new life into your workforce. While disengaged employees can hamper productivity and morale, new employees can inspire their team members to greater heights with their enthusiasm and energy.
Typically you’d pay long-term employees considerably more than a new hire. Hiring a new employee also gives you the opportunity to eliminate or reduce high-cost seniority driven benefits and perks – number of weeks of vacation, golf club and/or gym memberships, company car, parking spaces, Smartphones, etc.
Is There An Ideal Employee Turnover Rate?
Although there’s no such thing as an ideal employee turnover rate, 10% is the rate most commonly used. However, not all employees are created equal. If you’re losing your subpar performers, then you’re doing well, regardless of the percentage but if your rate for losing top performers is high, you have a problem.
Low Employee Turnover Can Be a Problem
Low employee turnover is not necessarily a sign of a healthy company. It can be a result of poor management, fear of termination, weak performance management or being slow to release surplus labour. Although firing or laying off employees is never pleasant, you should have a plan in place on how to deal with under performing employees.
Employee turnover can be very positive for your company as long as you’re losing subpar employees and not your top performers. I recommend that you carefully review the records of the employees that have left your employ in the last year to determine whether their leaving was of benefit to your company or if you have a problem that needs to be dealt with.
Boosting Team Morale During the Holidays!
The holidays are fast approaching, and while it is a very happy and exciting time, it also is a period of high stress for many! With lots of shopping to be done and countless holiday functions to attend with family, friends, and work, the holidays can be quite an overwhelming time.
At this time of year, I’m often asked how employers can keep their employees motivated and energized during the busy build-up to the holiday season. While you can’t control what is happening in the lives of your employees outside of the office, there are a few things you can do for them at work to boost office morale, such as:
- Acknowledge accomplishments/hard work.
- Creating an encouraging environment that recognizes the hard work of your employees will remind them that they are appreciated and their work is valued. They are less likely to let their work suffer during a busy time when they know their impact is important!
- Allow for time-off if employees are overwhelmed.
- If you recognize your employees are overwhelmed, granting an hour or two for personal time can go a long way in helping them focus on their work for the time they are in the office. Their productivity won’t be as great if they are thinking of the million things they have to do when they’re off the clock.
- Offer rewards and personal perks.
- Incentives will keep everyone determined and engaged – and a little friendly competition doesn’t hurt! Setting attainable goals will push your employees in a positive way.
- Keep things fun!
- Ensuring your workplace environment has an element of fun to it is important – nobody works well in a perpetually boring atmosphere! Allow your employees to have fun with one another in a common space, like a lunchroom, and they’ll be able to focus better when at their desks.
While it is inevitable your employees will suffer a “spring fever” type syndrome due to the holiday season, these small tips will help keep everyone on track and productive!
Do you have any tips for keeping your team engaged during busy and overwhelming times of the year? I’d like to hear from you! Let me know in the comments.