An annual performance review is a way for you (leadership) to fairly and consistently asses talent, provide feedback, and gauge if talent will receive a raise or a promotion
You may be wondering, why do we actually need an annual performance review?
You may be wondering, why do we actually need an annual performance review?
The purpose of creating an annual review process is to have a standard way to:
1- Define how employees are performing
2- Rank employees and decide if they will receive a raise or promotion
3- Drive development for the employee
4- Compare performance year over year
1- Define how employees are performing
2- Rank employees and decide if they will receive a raise or promotion
3- Drive development for the employee
4- Compare performance year over year
Now, what does a completed process look like?
There is a process that:
1- Defines when an employee receives a raise or promo
2- Is based on standard documentation
3- The Annual Review Process is rolled out to entire org
4- All managers are trained on the process
There is a process that:
1- Defines when an employee receives a raise or promo
2- Is based on standard documentation
3- The Annual Review Process is rolled out to entire org
4- All managers are trained on the process
Now that we understand this, letโs cover the steps we need to build an annual review system ๐
Step 1: Define how to baseline & rank performance
In order to have a successful annual performance review, we must have a baseline on how to rank our employees
Creating a statistical way to โrankโ our employees is the first step to create a fair and consistent ARP process
In order to have a successful annual performance review, we must have a baseline on how to rank our employees
Creating a statistical way to โrankโ our employees is the first step to create a fair and consistent ARP process
The two most common ways to do this are:
1. Pre-defining KPIs & goals per role
2. Ranking against the performance of values
1. Pre-defining KPIs & goals per role
2. Ranking against the performance of values
1/ Pre-defining KPIs & goals per role
Every role should have very clear goals which should be clearly stated starting in the hiring and onboarding process
Every role should have very clear goals which should be clearly stated starting in the hiring and onboarding process
KPI & Goal Example:
Role: Customer Success Manager
Goal: Average Customer LTV = $20,000
KPIs:
1. 5 Touchpoints during onboarding
2. Solving 3 problems not related to our services per client
3. 1 touch point per week that is not scheduled with the client
Role: Customer Success Manager
Goal: Average Customer LTV = $20,000
KPIs:
1. 5 Touchpoints during onboarding
2. Solving 3 problems not related to our services per client
3. 1 touch point per week that is not scheduled with the client
2/ Ranking against the performance of values
Values are critical to bind our agency together
Ideally, you should have at least 5 values and then rank your employees against them
Values are critical to bind our agency together
Ideally, you should have at least 5 values and then rank your employees against them
Some businesses rank performance on other things such as โleadership traitsโ as well as the ability to drive continuous improvement
This includes making the company better through cost savings, initiatives, revenue drivers
This includes making the company better through cost savings, initiatives, revenue drivers
Value Example:
Role: Customer Success Manager
Value being Ranked On: Identify a Problem, Raise A Solution
Role: Customer Success Manager
Value being Ranked On: Identify a Problem, Raise A Solution
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