Conducting an Employee Performance Review
While there are ways to improve a business, the first step to do is to conduct an employee performance review that will allow entrepreneurs to know the weak points of their business and adopt certain strategies to improve these; provide reward to star employees to motivate them; and communicate with mediocre workers and force them to do better.
Performance reviews allow employers to know their business priorities, provide rewards to their star employees, and deal with underperformers and adopt policies to pressure them to excel.
Meanwhile, occupational psychologists believe that performance reviews will allow employers to adjust their worker’s standard that will make their company more competitive in the industry.
Rewarding employees who excel in their jobs
One of the main goals of performance reviews is to determine all the star employees who contribute their talents, skills, and ideas to the company.
After knowing the star employees, the next step is giving them rewards such as salary raise and bonuses that will motivate them more in their jobs. By giving rewards, employers also implicitly recognized the contributions and dedications of their workers.
Another advantage of giving rewards is that employers can keep their valuable talents. Remember, successful businessmen are successful in keeping their talented key employees.
Communicate with underperformers
While telling employees about their unsatisfactory performance may not be easy (especially for those onion-skinned individuals), doing this is very important to motivate and pressure them to do better.
When communicating with mediocre employees, make sure that this is done in a very constructive way and not to the point that a person’s moral and self-esteem are crushed. However, employers and supervisors should clearly state that poor performance has its own consequences.
According to business consultants, employers have the right to terminate a worker who provides mediocre output.
Meanwhile, employers should also ask their workers the reason behind their unsatisfactory performance. By doing this, employers can make reasonable adjustments that will allow employees to do better in their jobs.
Strengthening the weak points of company
In some cases, performance reviews will also reveal the weak points of a company that affect the workers. By having this kind of knowledge, businessmen will be able to make certain adjustments (e.g., allot more funds, provide training for workers, etc.).
For example, a resort was not doing good as the visitors are continuously declining. After studying the performance of employees, the owner then discovered that the marketing team was not being assertive, thus resulting to less exposure in the industry.
After knowing the weak point of the company, the owner provided more funds to the marketing team to allow them tap the advertising media such as the Internet, newspaper, magazines, radio, and television.