PERFORMANCE MANAGEMENT
Three-quarters of small businesses fail to hold formal performance reviews
New research from Reabur.com, an online HR consultancy, has revealed that only a quarter of small business have “official performance reviews”. However, 81% frequently have “unofficial” one-to-ones with team members.
The study by Reabur.com asked 1,103 employers of 20 or less staff, how often they have “one to ones” with their employees, as well as if their staff have clear and reachable goals and if they have a official process in place for performance reviews.
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Key survey findings
73% of respondents didn’t have an “official” process in place for performance reviews with their staff.
When these respondents were asked why this was the case, 53% said it was due to “lack of time”.
27% of respondents said that they had an “official” process in place for performance reviews.
Similarly 19% claimed that all of their staff members had “clear and reachable” goals for progression in place.
Although the study revealed that only a quarter of the respondents had an “official” process in place for performance reviews for their staff, 81% said that they frequently had “unofficial” one-to-ones with their team members.
A final word
“I cannot stress enough the importance of regular and formal performance reviews. They may seem like a mundane task and some managers may not look forward to conducting them, but they are a great opportunity for managers to fully understand their team’s strengths and weaknesses and set performance targets, carefully aligned to the company-wide strategy.
“Once a couple of reviews have taken place they will start to become quicker and easier. Although informal one-to-ones are great and build relationships of trust amongst the team, they do not provide the employee and manager with a well thought out, structured meeting in which future career objectives and opportunities can be fully explored. It is always beneficial for the employer to have a paper trail, documenting valuable discussions, where performance targets can be regularly revisited to ensure key objectives remain on track and any challenges overcome.” - Georgina Read, co-managing director of Reabur.com
Want to know more?
Reabur is a “team of chartered human resource professionals and accredited mediators, the core values if the business is taking on the 'people' challenges within a business.” To find our more visit www.Reabur.com.