Employee performance review doesn’t have to be a confrontational meeting dreaded by both, employees and managers. In fact, there are business advantages to be gained from having performance reviews. Most often, a successful review process begins with the employer creating a suitable working environment for his workers and giving them a stake of the company. For instance, a minimum wage job which favors an employee will definitely experience higher production rates as compared to a minimum wage job which puts the employee in a very uncomfortable situation.

Here are some tips to assist you develop a successful process of employee evaluation on a regular basis.

Before you start gathering employees into the corner office to carry out time-consuming and sometimes daunting employee performance reviews, you should carry out another review -- determine exactly what your goal is in setting up an employee review process for the business.

In many ways, evaluation ofperformance start with the employer's mental inclination. Is your intention to do this continuously or? Do you consider performance reviews as a chance to spur employees to greater performance or as an obligation? Are performance reviews planned only after someone asks for a raise or when you have issues with an employee, or are they highlighted on your calendar every month or every year?

Nevertheless, when you think of performance reviews as an essential component of your business, you consider reviews on a more regular basis. Verbal reviews should start early shortly after the employment date and should be carried out frequently until you shift your paradigm into your written document."

The following guide provides information onhow to develop a successful review process, why you should create an employee review process, and how to avoid booby traps in conducting employee performance reviews.

Setting up an employee review process: Benefits of an Employee Review Process

There are actually business benefits to be gained from creating a program for evaluating employees on a regular basis. The evaluation of performance process provides an avenue for staff members and supervisors to take out time from the daily business hurdles to discuss longer-range plans and issues. This is profitable for the business because it enables leaders to establish goals, clearly express their expectations from employees, and get feedback from the rank and file. This initiates communication between managers and employees. At the same time, managers can utilize performance reviews to aid further business goals -- for instance, encouraging employees to try to increase sales or productivity by increasing the minimum wage. By increasing the minimum wage, the employer avoids losses in production time, thus, increasing efficiency.

In order to realize benefits, it's important for employers to understand their goals for the employee review process and get the right paradigm shift. The most common use of the performance review process is to document previous performance. Nonetheless, arecentpattern is an employee development review. The employee development projects in to the future. These reviews often include information about previous performance but place greater emphasis on specific job and personal goals, career development, and areas of personal growth.

Business leaders also need to ascertain what kind of review process to administer. There are different kinds of employee reviews, a few are listed below:

• Top-down review. This performance review is carried out byan individual above the employee in rank at the company -- this could be a manager of a business unit, direct supervisor, executive, or all of the above. Appointing a direct supervisor in charge is using the most effective way to determine an employee's performance and provide valuable feedback on how they can increase performance.
• Self-assessment. The employee self-assessment can be utilizedsimultaneously with any of the other review processes including that listed above. Some companies have found this very helpful in that it can help enlighten managers as to areas in which an employee can ameliorate and may benefit from training. Also, it can enable the employee to be more willing to receive feedback from a manager and to undertake some constructive criticism. Employees, in fact, can sometimes be ruthless on themselves than their supervisors are. But the disadvantage is that an employee's view of their performance can sometimesshow great discrepancies from manager's view, which presents problems in the review process.

Setting up an Employee Review Process: Develop a Successful Employee Review Process

Once you make a decision to create an employee review process there are several decisions you need to make along the pathto make it a successful attempt. You'll have to decide who will be subject to reviews.

Second, you need to decide if you will use a performance review format from a Web-based application provider, an off-the-shelf software program, or a customized format only for your organization. This decision may depend on your resources andthe size of your business.

Setting up an Employee Review Process: How to Set Employee Objectives

Rowson recommends that you set employee objectives and goals at the unset of the performance cycle by using the SMART formula:

• Specific. Clearly specify what your expectations are from the employee and what the employee is promising to do, for example, "I will ameliorate customer response rates in the call center by 20 percent," says Rowson.
• Measurable. Talk about what measures to use in determining whether you have attained this goal. In the case of the call center, you could utilizemonthly call volume statistics compared to the previous year.
• Aligned. Make sure that these goals are tie with the company's goals.
• Realistic. "I've met employees that actually say their goal is to climb Mt. Everest, so to speak, but they don't have the materials, don't have the money," says Rowson. It's essential that the goals represent something that can be accomplished realistically.
• Time bound. Establish a time frame in which the employee is committed to reaching this goal. 

Setting up an Employee Review Process: How to Conduct Employee Reviews

Reviews are usually conducted approximately 60-90 days after employment, and at regular intervals from there on. Companies normally conduct reviews for all employees during a designated time of the year or plan reviews around an employee's anniversary date. They can also be held more often, such as once every month, if it aids the business to better achieve goals. Reviews usually summarize performance of tasks and duties and constitute areas of strength or improvement. Sometimes they will cover goals for a future period.