1. Aligns employee behaviors with organizational mission, values, and goals
Performance review systems based on the organizational mission, values, and goals are one of the most straightforward ways to ensure the desired employee behaviors. Essentially, employees are rewarded and recognized for demonstrating behaviors that are aligned with the organizational culture. For this reason, the implementation of performance reviews can serve as both an organizational change agent and as a way to strengthen the current organizational culture.
2. Provides clear documentation between behaviors and rewards
One of the quickest ways an office can transform to a toxic work environment is if there is a perception of unequal rewards and/or pay. A well developed and administered performance review can reduce the likelihood of unfair perceptions by providing direct feedback and clear documentation between the employee behavior and associated rewards. This will also reduce rivalry among coworkers because they will have a clear understanding of each of their individual career paths.
3. Increases motivation and employee commitment
The simple act of sitting with an employee to discuss their performance and career path shows an interest in their growth and in turn promotes organizational commitment. It’s a common form of reciprocity; if someone does something nice for you, you will likely do something nice in return. Additionally, discussions regarding goals met and goals remaining to be achieved will serve as a reminder and motivator for the employee to continue to strive.
What has your experience been with performance reviews? Share your thoughts in the comments section below.