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Tip Number Two

Performance Review Myths & Tips for Employers

EMPLOYER MYTH #2: Everyone agrees on the goals.

FACT: Employees often don't understand their individual goals and are not in agreement with their managers on these goals.

The reality is that many employees do not have a clear idea of what their goals are. In addition, employees do not understand the metrics their managers use to measure performance.

Clear metrics for success and detailed goals with descriptions are necessary to get employee commitment to meeting such goals. According to the survey, twenty-three percent of employees said that their goals are changed by their managers three or more times a year, while only 11 percent of managers believe they change their employee's goals that frequently. This disconnect can be a highly demotivating factor for employees, and can prevent employers from meeting corporate objectives.

When employees feel like their goals are a moving target or that they are hastily assigned, employers will have a harder time keeping the workforce on task. An employee with a clear set of goals and how they will be measured against those goals is going to be a better performer than one who is unclear on how they will be evaluated. While it sounds like common sense, it's fairly commonplace for companies or managers to lack a formal process for goal setting and gaining agreement with employees about how they will be evaluated.

BEST PRACTICE #2: Document the goals together. Make it a living document. Establish clear goals that are understood by both managers and employees so there is agreement and commitment.

Clear goals are necessary to drive employee motivation and commitment to achieving them. Having a clear set of goals makes employees more productive because they are able to prioritize tasks on a daily basis that are in line with their employer's expectations. Verbal conversations are often misinterpreted. A good practice is to document the goals together, review the words, and clarify the meaning with time to answer any questions.

Employees aren't mind readers - they can't predict what a manager will want them to do from one day to the next, nor can they be expected to know what performance outcomes an employer will value. By establishing clear, written goals and expectations that an employee can refer back to throughout the year, employers can improve communication and ultimately impact employee job satisfaction and retention. Set reminder meetings to refresh the goals to accommodate changes in the business, and communicate the reason for these changes to the employee. Market conditions require business managers to be responsive and to adjust goals throughout the year. But if employees do not understand the reason for these changes to their goals you may loose their "buy-in." When employees have a current record of what the goals are and understand the external forces that require a change in goals, they will be far more likely to work toward achievement of those goals - and chances are they will have a better relationship with their manager.

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