How to properly organise the annual review

“At the beginning of my career, when I founded my company, I never held individual reviews. I thought that the monthly group meetings and my regular feedback were sufficient. A friend who consults for large companies encouraged me to implement annual reviews. I don’t regret a second of the time I now dedicate to each of my employees. I realize that nothing replaces that moment, which allows for a very precise evaluation of where we stand in our interpersonal relationship and in our relationship to work,” explains Florence, director of a SME.

A unique moment

For both the employee and the manager, the end-of-year review is a special occasion. And let’s be clear about this… No, an annual review is not a boxing match where one party must leave victorious. If there are exchanges of blows, it’s time to rethink the collaboration.

An annual review is a privileged moment that should allow everyone to project themselves into the upcoming months with the assurance that work will be effective and collaborative. 

It is a moment distinct from other weekly or daily meetings. Therefore, it is important to clearly schedule it in the calendar, reserve a room, and explain in advance what will be discussed and how it will unfold so that when the moment arrives, nothing distracts from the exchange.

Preparation

Even if you do this every year, even if you are used to it, and even if you are experienced in conducting reviews, the key is preparation. How? Here are some pointers:

1. Prepare a factual assessment

In the most objective manner, you should be able to list what has been achieved and what has not. To do this, you need to rely on precise facts and figures. Assess performance against the objectives set the previous year.

2. Understand the interpersonal skills

Preparing for a review is also an opportunity to open up the reflection circle to colleagues, clients, etc. For example, informally asking how the employee’s relationships with others are going and if there are particular points to consider. The idea is to gain a broader perspective, in a “helicopter view.” Evaluate behavior.

3. Daily work

Preparation for the annual review starts… as soon as the previous one is finished. We sometimes tend to focus only on the last few weeks or the last two months. This is normal; we all have that reflex of relying on our last impressions. However, it can be useful to gather information throughout the year to create as comprehensive a picture as possible that highlights progress or regressions.

4. Short-term goals

Even though the aim is to project over a full year, during preparation, we can also think of short-term goals to propose to employees. These goals then become milestones to reach later, which have been defined.

How to fully listen? 

You’ve probably heard about it, active listening is one of the keys to a successful annual review. For those who may have forgotten what it entails, here are some reminders:

1. Avoid interruptions

Employees don’t always have the chance to express themselves. They often have things to say. During the annual review, let them speak and express their feelings. Not interrupting demonstrates that you are fully engaged in the conversation and ready to listen to what they have to say.

2. Don’t judge

Whatever the shared comments from employees, the purpose of the review is not to determine who is right or wrong and to take sides. It is primarily about understanding their feelings regarding their work.

3. Paraphrase

Rephrasing and summarizing the words of an employee can help clarify ideas and avoid misunderstandings. Words are nuanced and do not always have the same meanings for everyone. The magic phrase is: “If I understand you correctly, what you’re saying is that…”

4. Ask open questions

Questions that only expect a “yes” or “no” response are not very valuable in an annual review. The goal is to make the employee talk. Focus on open-ended questions, which allow a broader semantic field and a better understanding of each person’s needs and frustrations.

5. Analyze non-verbal communication

Many things are expressed without words. Analyzing non-verbal cues is also a good way to understand how an employee experiences their work. But be cautious of misconceptions! Non-verbal communication often depends on the context. Therefore, take the situation into account and show empathy to correctly interpret what’s happening.

Pitfalls to avoid 

The review is a narrative that is constructed. The goal is to start from one place and move towards another, bringing your employee along. But, like any journey, there are some stones to avoid in your shoes.

• Pitfall 1: only discuss negative matters

The approach should always be positive. Even if unpleasant things need to be shared, the goal is for the employee to want to continue engaging with you, not to overwhelm them with negative remarks and criticism. The choice of words and attitude must be carefully considered.

• Pitfall 2: focus only on the past

Taking stock and snapping a Polaroid of the past year is good. However, it is essential to understand that the purpose of a review is to set out for another year. So, you look more at the road ahead than the one already traveled.

• Pitfall 3: Failing to Define Clear Goals

Do you remember the acronym SMART for defining goals? Good news, the annual review is the perfect place to use this method. SMART means setting Specific, Measurable, Achievable, Relevant, and Time-bound objectives.

• Pitfall 4: not being “fully” present

Being engaged in active listening, as noted earlier, is important. This also means being genuinely available. Don’t take calls, don’t check emails, and be in a secluded place where you won’t be disturbed every five minutes (except for emergencies, of course).

Alternatives to the annual review 

For some, the approach of an annual review may not be the right one. They believe that in our fast-moving world, there should be other ways of evaluating employees.

Indeed, there can be alternatives and even complementary approaches. Here are a few:

1. Monthly assessments

Some companies do this. We all have references to “employee of the month.” The advantage is that it allows for corrections to be made immediately. However, it can quickly become time-consuming.

2. Development reviews instead of performance reviews

A post-COVID debate has emerged in the United States, and some managers have made a decision. From now on, they will conduct development reviews rather than performance reviews. The idea is to focus solely on strengths rather than enumerating what isn’t going well. If necessary, training can be suggested.

3. Self-management

Some companies have a reverse approach to the annual review. They ask their employees to set their objectives in relation to the company’s strategy. The risk here is that some may take the opportunity to set overly simple goals or may not be able to clearly define objectives.

Whatever the approach, one final piece of advice: don’t hesitate to introduce some lightness into the review by sharing an anecdote or using humor. The key is, first and foremost, to keep the moment friendly.

Some points of attention 

The annual review is not mandatory. However, it doesn’t mean that when it occurs, there are no rules. It is important to be attentive to certain matters.

• First, to respect privacy. The manager may sometimes be tempted to ask questions that the employee does not wish to answer. Be cautious of power abuses. Some topics (love life, social life, community involvement, sexual orientation, etc.) strictly belong to personal life, and the employee is not obligated to discuss them.
• Next, to ensure transparency. The employee has the right to know the data retained about them, especially in the context of an evaluation.
• Finally, if there is a system for evaluations, the employee must also have access to it.

Questions not to skip 

Certain questions are highly recommended during an annual review. Here are a few we consider essential:

• How do you feel in your role? Within the team?
• What important moments do you remember from the past year? What are your main satisfactions?
• What points would you like to improve (stress management, time management, teamwork, decision making, creativity)? How can we assist you with these goals?
• What do you think of the new goals? Do they seem aligned with what we have decided?
• Do you have aspirations for the coming months? Any specific requests regarding your work (salary…)?

Statistic: 42 

42% of employees emphasize that during reviews, the focus should shift more towards the future, talents, and personal development, rather than on past performances.

Source: Belga 

Summary:

25% of workers are not evaluated annually. Yet, this moment of exchange is an opportunity for everyone. That’s why we offer a few guidelines to ensure success.