How to conduct a future-focused performance review

In news that may (or may not) surprise you, just 14 per cent of employees strongly agree that performance reviews inspire them to improve their performance. 

This is a deflating statistic to read as a manager — especially when you consider the amount of time that goes into preparing a detailed and thoughtful performance review for your staff.  

It’s also a missed opportunity: to forge deeper relationships, help your staff refocus on their next career progression goal, and set your entire team up for success moving forward. So, what can you do about it? 

The answer lies in thinking forward, not backward. Gartner research shows that organisations that make performance reviews forward-looking, not backward-looking, can expect to improve employee performance by as much as 13 per cent. 

Traditional performance reviews focused on the past — how the year went, what went well and what didn’t go well. While there is value in reflecting on the past — effective leadership hinges on creating a culture of continuous feedback, introspection, and authentic communication — there’s significant value in focusing on the future. That’s where your employees can impact what happens.

If your organisation — like many others in Australia — is commencing the annual review process in the New Year, here’s how you can conduct a motivating, future-focused performance review. 

Facilitate a two-way conversation

An essential ingredient of any future-focused performance review is facilitating a two-way conversation. Two-way conversations help to improve communication, as well as build stronger relationships between managers and employees, leading to better performance development outcomes.

“Based on my work with leadership teams, I’ve found that when performance conversations are powered by partnership, the landscape shifts...not only do managers enjoy better relationships with their teams, but their feedback may even produce greater joy, not fear.” Joe Hirsch , the Harvard Business Review

As well as asking your employees for their feedback on performance and strengths, future-focused performance reviews also require your employee to share their future career goals, and the capabilities they think they’ll need to develop to achieve them. 

Focus on career goals 

Where ‘traditional’ performance reviews don’t tend to encourage employee development, future-focused performance reviews prioritise opportunities for your staff to grow professionally and personally. 

Whether through upskilling, mentoring or coaching, providing development opportunities can help your employees picture the future of their career with your organisation, and demonstrate that they are valued. It also helps you to retain and engage top talent!  

To start a two-way conversation about career goals, you might like to ask or discuss with your employee: 

• The skills they’d like to learn in the future, along with their career interests and aspirations.
• The skills they need learn and the development areas they need to work on to continue providing value in their role.
• Whether their future career aspirations align with your organisation’s vision and purpose — and if not, how they can align.
• The possible career paths available to them within your organisation, and what career progression looks like for at least two positions above their current position.

Locking in development opportunities is key to maintaining momentum post-performance review – and building trust and commitment with your employee.

If your organisation’s performance review cycle commences at the beginning of the calendar year, Professional and Continuing Education’s Professional Management Program, which kicks-off in February, is a fantastic way to keep the ball rolling for your employees.

Don’t ‘set and forget’ 

A future-focused performance review is not something you can ‘set and forget’; a once-a-year chance to provide feedback and discuss career goals and aspirations with your employees. 

The benefit of a regular feedback loop as part of a broader, holistic performance management strategy is a necessity.  

A Gartner study has shown that it is far more productive to encourage regular and informal performance conversations with your employees in addition to their annual performance review. In fact, providing ongoing feedback could boost employee performance by as much as 12 percent. 

It also enables you, as a manager, to provide more timely feedback to your employees, and adjust expectations or objectives, based on organisational changes or past performance.

Finally, remember that nothing boosts employee motivation like a note of encouragement and modelling the behaviours you want to see. 

End your employee’s future-focused performance review on a high with words of praise and positive reinforcement – negativity is hardly likely to inspire anyone to perform extraordinary feats of progress!

In preparation for your team’s 2024 performance review, familiarise yourself with Professional and Continuing Education’s suite of short courses, executive education programs and customised education solutions. 

Many courses and programs commence as early as January 2024 – boost your team’s motivation and morale in the new year by enquiring today.