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what's up boss what are you doing evaluating you your annual reviews coming up you're just watching me on my computer what are you evaluating our standard performance goals motivation teamwork problem solving decision making you know how do you get all that from just watching me right now duh cause i'm a manager oh [Music] in this video i'll share common biases and issues with performance reviews and ways to overcome them annual performance reviews can be let's say interesting for both the employee and the manager there's often great intentions with performance reviews however the process is typically flawed by lack of a clear evaluation process infrequent to no feedback and rating biases that managers unknowingly carry i've heard a number of employee stories where staff have only received feedback regarding their performance from their boss during an annual review some may have an additional mid-year review but that's it once or twice a year this may be the first and only time staff hear about the things they are doing well at and the things they need to improve for performance feedback to work it must be routine and consistent supported by planned follow-up to discuss progression it's recommended to discuss performance feedback and evaluations with your staff at least once a month this may be as simple as sharing what performance evaluations and feedback you have highlighting progress and most important sharing praise and acknowledgement to reinforce positive work many times the dilemma for the manager is that the performance management system is deficient or incomplete proper performance management includes clear expectations and goals coherent evaluation process that draws from a number of areas of performance like quality and productivity and routine feedback delivery if you don't have clear expectations in an apparent way to evaluate it's rather challenging for a manager to deliver feedback and for an employee to understand what's expected of them the third challenge with performance reviews is rating bias from the manager these biases are prevalent and often unrecognized unnoticed and they persist regardless of the performance review questions or ratings clifton and harder authors of the book it's the manager moving from boss to coach from the gallup organization have identified five different common biases for performance ratings personal or idiosyncratic bias managers favor and find the good in employees they like and who would work how the manager would work halo effect for employees who perform well in one area the manager may overlook issues or development opportunities in another performance area the middle default managers gravitate in the middle giving staff ratings in the acceptable middle simply because they don't have enough data information or discussions to support a higher or lower rating leniency and strictness biases as with the middle default most managers rate in the middle but there are some who have a bias towards the extremes giving the benefit of the doubt over appreciating satisfactory work and giving higher ratings than the data suggests or the manager who thinks no one is perfect and looks for any opportunity to highlight development opportunities and deliver low ratings for most staff spillover effect similar to the halo effect managers let past performance dictate and drive their decisions for current employee performance meaning a person who performed well last year will often receive the same rating this year regardless of their actual performance so these are the common challenges with performance review lack of routine performance discussions lack of evaluative data and information and inherent rating biases again performance reviews have great intentions and can be helpful to level set and understand how staff are performing i certainly don't recommend scrapping reviews altogether you just have to put in the work up front to make them effective consistent and fair now to the recommended solutions make feedback part of your work routine even if it's simple praise to reinforce behaviors but ensure your feedback is specific and not just you're doing a great job keep up the great work identify specific behaviors that employees are using to be successful share opportunities for improvement when identified in a timely manner don't sit on a bunch of feedback for a year waiting until annual review time this is not helpful as shared establish performance management using clear expectation ensure your goals and expectations are something that is consistently measurable goals like motivation and problem solving can be sometimes hard to measure and evaluate whenever possible attempt to have a mix of productivity and quality goals that you have a process to capture and evaluate the gallup authors from it's the manager found through their extensive research it's best to have goals that involve individual achievement so responsibilities of the employee collaboration with team members so how effectively employees work with their team and customer value the impact of the employees work on the customer this could be internal and external customers to evaluate collaboration with the team it may be helpful to gather peer feedback and for customer value customer feedback and satisfaction can be useful it's also helpful to think about your rating scale for performance reviews at my employer we used a four-point scale with exceptional successful developing and not performing this scale worked well for most situations and was often well received and easy to communicate gallup recommends a five-point scale with exceptional outstanding above average average and below average this scale leans toward the higher performing side which is designed to promote and encourage higher performance i kind of like that idea and i'm curious about your thoughts please share in the comments below gallup suggests designating outstanding as one in ten employees and exceptional as one in a hundred employees whatever your scale is it's highly recommended to determine and decide as a rating group what constitutes the different ratings when you're considering your performance data and evaluations additionally it can be helpful to calibrate and provide this guidance to all raters to ensure consistency with any performance management system and review process you want to have various sources of information performance data about productivity the quantity or speed of their work quality reviews and accuracy of work potential internal and external feedback from peers and customers depending on the employee's role it can also be helpful to have an individualized goal if their work is different from others or if there is some direction of development or growth they're on when it comes to biases having multiple performance data sources and clear expectations along with setting guidelines and calibrations for raiders can help minimize the different biases to get to a more accurate and fair performance rating simple awareness of these biases and making sure to check yourself for any potential bias can have a significant improvement on reducing bias in ratings again performance reviews although often flawed are a great tool to understand performance of both the individual and the company putting in the effort up front with a performance management system delivering routine feedback and having awareness of potential bias can make a good idea into an excellent administration good luck you got this