Performance reviews don't work.
There, I said it.
Your typical performance review is an inaccurate representation of how your employees are performing, and more often than not, they're a giant waste of time for you and your team. Let's call them what they really are: a massive distraction and worst of all, a demotivator.
Rating your employees on a scale of 1 to 5 or red to green, using a list of predetermined and mindless questions isn't going to give them the feedback they need to excel in or out of the office. And I can guarantee your employees hate getting those reviews just as much as you and your managers hate doing them.
For that reason, I refuse to put my employees through this arcane process. That's right, at my company, we don't do performance reviews.
But you might be wondering how our employees feel about our anti-performance-review environment. A few months ago, we conducted our annual anonymous employee survey to find out.
The survey allows our employees to tell us exactly what we're doing right and exactly what we're doing wrong — completely unfiltered. When we got the survey results back, I wasn't surprised to see that almost every single employee said they hate formal performance reviews (most of them were scarred by the process at past jobs). Upon starting at TSheets, they were relieved to learn that we just don't do them.
But interestingly, almost every single employee also said they want more feedback from their co-workers and supervisors throughout the year.
It would seem we were at an impasse. They hated performance reviews, but wanted more feedback … and the two generally don’t go hand in hand.
Fortunately, I knew exactly where my team was coming from. I hate performance reviews just as much as the next guy, but I'm a big believer in constant and consistent coaching and feedback — and I know there's a huge difference between the two.
So if you're ready to eliminate performance reviews in your own business and focus on feedback that actually performs, there are a few things you need to do.
(Part of) The TSheets Customer Experience Team
TSheets- Hold consistent one-one-ones with your employees.
Schedule one-on-ones on a weekly, bi-weekly, or monthly basis — whatever makes sense for you and your team. For the employee, this is their opportunity to ask any questions they might have, gather any information they might need from you or air any challenges they might be facing.
And this is an excellent opportunity for you to offer up some consistent feedback and coaching.
For example, here at TSheets, one-on-ones between team members and their leads happen on a regular basis. They allow this high-octane machine we call TSheets to continue running smoothly, but they also serve as an alternative to annual, formal performance reviews. And our employees agree that this system of regular one-on-one check-ins is much more effective and beneficial.
Now, not every one-on-one session needs to include coaching, but you should try to work it in at least once a quarter (remember, be constant and consistent). It doesn't have to be formal. And if you ask me, it really shouldn't be.
So, what should that coaching session look like?
- First, ask employees how they think they're doing.
Start by asking your employees where they see themselves excelling in their jobs and where they think they could use a little more work. But be specific! A general question will get you a generic answer. Ask about a specific project, team interaction, or situation.
Then give your feedback. Tell them what they're awesome at and where you think they could do better. Help them find the resources they need to improve their weaknesses and encourage them to do more of the things they excel at.
Then ask yourself, "Do I know where this employee is headed? Do I know where they want to go?" If you're not sure, find out. Ask them where they see themselves within the company and where they want to see themselves in the future. Then work with them to plot the path that will get them there. You always want to be considered an asset to your team. You're the tool that will help them get to where they want to go.
- Make it go both ways.
Feedback works best when it goes both ways. So once you're done discussing your employee's performance, ask them how they think you're doing as a leader. How can you help them succeed? Are you acting as a roadblock or a bottleneck? Are you giving them the tools and resources they need to be a total rock star?
When I'm discussing feedback with an employee, I always ask them, "How can I help you do the best work of your life right here at TSheets?" And no matter how uncomfortable it might be, I make them give me an answer.
- Don't tie feedback to compensation.
When you tie your feedback to compensation, it stops being a coaching session and becomes nothing more than a negotiation or worse, a sales presentation.
When this happens, it doesn’t help anyone get better. If the employee doesn't walk away with a raise, his or her perception is that they just walked away with nothing. Any feedback, advice, tools, or resources you just armed them with are deemed worthless.
Here at TSheets, our one-on-ones are intended to help our employees succeed and do the best work of their lives! They're definitely not intended to determine whether or not the employee in question deserves an extra dollar figure per hour.
Our employees know that when they deliver excellence, crush their goals, open themselves up to coaching, and engage in consistent feedback that goes both ways, their compensation reflects that.
- Encourage your employees to be proactive.
At TSheets, our employees are encouraged to be proactive and seek out feedback when they want or need it, rather than waiting for someone to offer it up. If they want to know how they're doing, they need to put in the footwork to find out. They need to have the guts to ask their leader what they're doing well and what they need to do to improve.
In the end, yes, it can be uncomfortable to have such open conversations, for both you and your team member. It can be hard for an employee to ask for feedback and even harder for you to offer it. But when you engage in feedback that goes both ways and ask the difficult questions, it's 110 percent worth it.
But don't take it from me. My employees seem to love this anti-performance-review attitude just as much as I do. Need proof? Here’s a review (pun intended) from Kelsie Medel, a five-year TSheets veteran, on our approach:
"The feedback process can be incredibly uncomfortable for both parties, but that’s how growth works! We have a core belief: Trust each other enough to fight. It’s amazing to see the trust that is created when we have transparent, vulnerable discussions. It's incredibly beneficial, and in the end, you get way more value from it than you ever would with a typical performance review."
There you have it. Stop wasting time on performance reviews. They don't work. Instead, focus on coaching and having quality conversations where you both give and receive honest feedback. In other words, focus on feedback that actually performs.
Your team will thank you.
