Performance review benefits

Staff performance reviews help you recognise and value your team members, clarify their roles and identify training and development needs. Performance reviews also help you create a culture of open communication in your business.

The results of performance reviews can help you make decisions about salary increases and pay grading, allowing you to improve budget forecasts for the coming financial year.

You find out who is doing their job

You can use performance reviews to find out if your staff are meeting the expectations of their job descriptions and:

  • reward staff who are bringing value to your business. Workplace relationships will prosper in a culture that recognises achievement and values accountability.
  • use review processes to evaluate performance and behavioural issues and take steps to address them. Identify training and development needs and help staff plan their career development.
  • set targets for staff performance that help you address inferior performance and reward effectiveness.

Read more about staff training and development.

You can clarify roles

Performance reviews allow you to define the roles and responsibilities of your staff and help them to reflect, consolidate, plan and review their work performance. Review discussions are a chance to ensure each staff member knows how they contribute to your business and its aims. Look for opportunities to better align your staff roles with the emerging directions of your business.

You can promote open communication

By talking to staff about their performance, you can promote a culture of open communication, discuss any weaknesses or problems your staff have and help them find solutions. Create discussions that help you ensure you're taking care of your staff and giving them the best chance of developing, achieving and rising in their roles.

Involving your management team in developing and implementing your performance review process is essential to creating a positive culture of feedback and improvement. This process will also help motivate your team and build their understanding of, and commitment to, your business.

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