Areli Santos Alvarado

Conducting Effective Annual Reviews: A Guide for HR Specialists, Employees, and Managers The goal of an annual review is not only to reflect on past performance but to build a bridge to future achievements. Contents Introduction ...................................................................................................................... 3 Preparing for the Annual Review ............................................................................................... 3 Conducting the Annual Review ................................................................................................. 4 Following Up on the Annual Review ........................................................................................... 5 Checklist for Managers .......................................................................................................... 6 Review Job Description, Objectives, and Competencies ................................................................... 6 Gather Feedback ............................................................................................................. 6 Employee’s Self-Assessment ................................................................................................ 6 Manager’s Assessment ....................................................................................................... 6 Balanced and Constructive Approach ....................................................................................... 6 Agreement and Documentation.............................................................................................. 6 Resources and Support ....................................................................................................... 6 Periodic Check-ins ........................................................................................................... 6 Introduction An annual review is an opportunity to evaluate the performance, achievements, challenges, and development needs of an employee over the past year. It is also a chance to set goals, expectations, and action plans for the future. An effective annual review should be a constructive and collaborative conversation that fosters trust, motivation, and growth. This document provides guidance for HR specialists and managers on how to prepare for, conduct, and follow up on an annual review with employees. It also includes a checklist that managers can use to ensure they have covered all the essential points in their review. In addition to assessing past performance, annual reviews should identify areas for skill enhancement and professional development. They serve as a critical touchpoint for discussing career progression and aligning individual objectives with the company's strategic goals. By effectively leveraging this process, organizations can enhance employee satisfaction, boost productivity, and ultimately drive long-term success. Preparing for the Annual Review Before the annual review, both the manager and the employee should do some preparation to make the most of the meeting. Here are some steps to follow: • Review the Employee’s Job Description, Objectives, and Competencies: Assess how well they have met them over the past year. • Gather Feedback from Other Sources: Include peers, customers, or stakeholders to get a broader perspective on the employee’s performance. • Identify Strengths, Areas for Improvement, Achievements, Challenges, and Development Needs: Think of specific examples and evidence to support your assessment and feedback. • Set SMART Goals: Specific, Measurable, Achievable, Relevant, and Time-bound goals for the next year, aligned with the organization’s strategy and vision. • Prepare an Agenda for the Meeting: Outline the topics and questions you want to cover. • Send the Agenda and Relevant Documents to the Employee: At least a week before the meeting, ask them to prepare their own self-assessment, feedback, and goals. 3 Conducting the Annual Review The annual review should be a two-way dialogue that engages the employee and builds rapport. Here are some tips to conduct a productive and positive meeting: • Schedule the Meeting in Advance: Ensure both parties have enough time to prepare. • Choose a Quiet and Comfortable Location: This allows for privacy and minimal interruptions, creating a conducive environment for open discussion. • Start the Meeting: • • • • o Begin by thanking the employee for their work and contributions. o Explain the purpose and format of the review. Employee’s Self-Assessment: o Ask the employee to share their self-assessment, feedback, and goals. o Listen actively and attentively to their perspective. Manager’s Assessment: o Provide your own assessment, feedback, and goals. o Use specific examples and evidence, focusing on behaviors and outcomes, not personality or intentions. Balanced and Constructive Approach: o Highlight the employee’s strengths and achievements. o Discuss areas for improvement and development. o Avoid making judgments, assumptions, or comparisons. o Use open-ended questions and positive language to encourage reflection and response. Agreement and Documentation: o Seek agreement on the employee’s performance level, development needs, and action plans. o Document them in a written form. 4 • End the Meeting: o Summarize the main points. o Express appreciation and recognition. o Set a date for a follow-up meeting. Following Up on the Annual Review The annual review is not a one-time event but a continuous process that requires regular monitoring and feedback. Here are some steps to follow after the meeting: • Send a Copy of the Written Review: o • File the Signed Review: o • • Store it in the employee’s personnel record and share it with the HR department. Provide Resources and Support: o • Provide the employee with a copy and ask them to review and sign it. Offer the necessary resources, support, and coaching to help the employee achieve their goals and development plans. Periodic Check-ins: o Regularly review the employee’s progress. o Celebrate successes and address any challenges or concerns. Ongoing Feedback: o Continuously provide feedback, recognition, and encouragement. o Adjust goals and plans as needed. 5 Checklist for Managers Use this checklist to ensure you have covered the most important points in your annual review with your employee: Review Job Description, Objectives, and Competencies o Did you review the employee’s job description, objectives, and competencies? Gather Feedback o Did you gather feedback from other sources, such as peers, customers, or stakeholders? Employee’s Self-Assessment Did you ask the employee to share their self-assessment, feedback, and goals, and listen actively and attentively to their perspective? Manager’s Assessment Did you provide your own assessment, feedback, and goals, using specific examples and evidence, and focusing on behaviors and outcomes, not personality or intentions? Balanced and Constructive Approach Did you use a balanced and constructive approach, highlighting the employee’s strengths and achievements, as well as areas for improvement and development needs? Agreement and Documentation Did you seek agreement on the employee’s performance level, development needs, and action plans, and document them in a written form? Resources and Support Did you provide the employee with the necessary resources, support, and coaching to help them achieve their goals and development plans? Periodic Check-ins Did you check in with the employee periodically to review their progress, celebrate their successes, and address any challenges or concerns? 6