James Schramko here. Today, I want to share with you why employee reviews can create such an intense situation that you might want to actually avoid in your business.
If you set regular reviews then you’re saying that there’ll be a certain time period elapsing where you’re not connecting with your employee and they also don’t really know where they stand and that can be very stressful for an employee. So, as the employee review comes closer, you’re having to gather information about this person and how well they’re doing and they’re trying to gather information about how to ask for a pay rise and make sure they still have a secure job.
Well, what if you don’t do that at all? What if you just don’t have pay reviews? What if you just had a weekly meeting where you’re checking in? What if you keep an eye on your lead and lag metrics so you know where your business is standing? What if you tuned in to the grapevine of your business and get a good feel for who’s doing good work on an ongoing basis? What if you did pay rises when someone performs instead of at a chronological set point?
So, this is counterintuitive but I can assure you in our own business it’s worked really well where we are responsive to the high performers at the time the high performance occurs. And this takes the pressure away from everyone. So, consider scrapping employee reviews and tune in to your business and see what happens.
I’m James Schramko. I hope you’ve enjoyed today’s tip.
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