small business

Performance reviews are something every business needs at some point. They allow you to communicate with your employees more effectively. Instead of a worker wondering how they’re doing and blindly trying to succeed, you’re giving them pointers and thus avoiding stress and frustration. The thing is, when is the right time to start doing performance reviews?


Most small business owners don’t know if it’s too soon to implement the reviews into their work routine and when the right time actually is. Is the business ever too small to start performance reviews?

Truthfully, the sooner you start the better. It gives people a sense of security and a confidence boost, as they always know exactly where they are performance wise, right from the start.


1.      They show you care

Listening to feedback from your team is a crucial part of a healthy and productive work environment. No one should be worried about getting feedback for their work, whether it’s positive or negative. Instead, silence should be the worrisome option. When no one is talking about the problems, it’s unlikely that they’re going to be resolved any time soon.


Feedback isn’t a form of negative critique; nobody is getting scolded or reprimanded for their mistakes. Instead, by discussing issues like adults, the employer or HR professional can help their team members improve their quality of work by analyzing where something went wrong. This is a surefire way to help coworkers show progress in their line of work and it allows them to grow professionally. Having an open dialogue helps everyone, especially the employees in your business.


2.      Reviews help understand weaknesses

Everyone likes to think that they’re a great judge of their own character and abilities. However, this is almost never the case. It’s practically impossible to judge yourself in a fair and unbiased way. To truly get an objective view of performance and productivity, you need an outside observer to give you the facts.


A surprising amount of progress can be made with a couple of astute observations made from the perspective of a third party. Situations in which there is a social element involved are crucial for observation. The way employees interact with clients’ needs to be constantly worked on and improvements are only possible with the help of a good review.


3.      They improve the way you listen

In order for your team leader to take information and give proper feedback, they need to be open and engaged in the conversation. They have to be able to take in crucial information about every aspect of the team members work. If an employee has become less productive in recent times, what is the main cause and how can both of you work to fix it?


Communication is the most important aspect of handling employees in a business, no matter what size it is. When you’re able to have open discourse with an employee and show that you’re on the same page, you can be sure that this will help improve other aspects of your work relationship. Business management consultants often recommend doing performance reviews simply because they improve communication and lead to more understanding in the workplace.


4. They help employees take the good with the bad

A common misconception about performance reviews is that they only focus on the negative side of things. The point of a review isn’t to put down your employee and show them what they’re doing wrong. Most people expect to be scolded and dread performance reviews because bosses generally use this as an opportunity to pin blame on someone. This is highly unproductive and inefficient, though.


Instead, you should focus on both the good and the bad. Start the review with a compliment on the worker’s performance, then move on to the points that should be improved. End the review with a compliment, too. This teaches your employees that reviews are nothing to be afraid of. Instead, they’re pleasant meetings where they get to find out if they’re on the right track of improving and doing better. It can be hard for people to accept that feedback will be positive, so it’s important to show them the good alongside the bad as much as you can.


5. They promote a go-getter attitude

After a performance review, an employee should feel refreshed and ready to take on the world, not sullen and depressed. If executed correctly, performance reviews are great for cultivating a go-getter attitude in the office. The employee will have more motivation to improve and nail their next work assignments, instead of their mood being completely flattened.


This kind of attitude is great in the office because it pushes your team further. They become more creative and more eager to prove themselves and solve work issues in a timely manner. Ambitious people naturally thrive in such environments, and doing regular performance reviews only gives them a boost and will to keep doing what they’re doing.



As you can see, performance reviews are useful for many reasons. They show people you care, help your employees feel more confident, and make you a better listener, as well as teaching people to focus on the positive. There’s nothing more rewarding than completing a performance review and knowing your employees are happy and content. They don’t have to rack their brains about anything performance-wise, and they’ll always know exactly what to do to keep growing as people.


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