Setting specific criteria and developing an accurate and effective year-end performance review process will bring many benefits to the business.
How to have an effective and fair year-end performance review? How to encourage your employees to work more loyally and harder next year? It's a challenging issue that not all managers can handle. To solve this problem, Navigos Search will share most standard year-end performance review criteria and process. Don't miss it!
1. What is a year-end review?
A year-end review is a process of evaluating work performance and reviewing employees at the end of a working year. This process helps managers objectively evaluate employee's performance over the past year.
The results of the year-end review have an impact on employee benefits such as salary increases, bonus consideration, and training and fostering plans.
However, businesses must build a performance review system to maintain fairness and transparency. A year-end review will help personnel planning more accurately and each employee will have the opportunity to develop their best abilities.
When work efficiency and capacity are accurately evaluated, employees will feel satisfied with being recognized and work hard to increase labor productivity for the business and reduce other costs. In addition, performance review also helps businesses attract, maintain, and develop long-term high-quality human resources.
2. Year-end review criteria
Basic year-end review criteria are:
Working capacity
An employee's working capacity is evaluated based on his or her level of work, ability to develop, and work results achieved.
- Level of work: Evaluated at the end of the year based on the employee's workload and working hours. Based on the set KPIs suitable for each different position, the manager will provide the most appropriate assessment results.
- Development ability: Through the results of work levels, managers will know whether employees achieve their goals before or after the deadline, the employee's expectations, and the difficulties they are facing at work. Thereby, managers can support and train employees to improve their expertise in the field they are undertaking.
- Work results achieved: This is the signal for you to best evaluate the working capacity of your personnel. Through your employees' work results weekly, monthly, and quarterly, you can make personnel and work adjustments for the upcoming year
Working attitude
Working attitude is also a crucial criterion for year-end review. Some specific criteria for you to evaluate the working attitude of employees are honesty, enthusiasm at work, respect for colleagues and customers, and time management.
Sense of ambition
Sense of ambition at work is the employee's work goal and career advancement expectations. If an employee lacks progress in their work, they will never improve themselves and help the business develop better. Therefore, businesses will appreciate employees who have a spirit of effort, try to complete the job, and have a high spirit of progress.
Year-ene review criteria
3. Standard year-end review process
The year-end review process is usually carried out according to the following basic steps:
Provide forms for employees to self-evaluate and cross-evaluate
Self-evaluation form is an assessment document provided by the human resources department to monitor and give feedback to each employee in the department. You can also maximize employee evaluation effectiveness by using a common evaluation form to collect feedback from other colleagues.
Based on the current situation of departments in the business, you can use popular year-end performance review forms such as self-evaluation, peer review, middle management evaluation, and senior management evaluation.
Summarize form results and prepare for the face-to-face meeting
After performing self-evaluation and cross-assessment through the form, it's time to summarize the review results. Next, prepare the content of the face-to-face meeting to discuss the work achieved in the past year and plan for the upcoming one.
Hold a face-to-face meeting
The face-to-face meeting of the year-end performance review is a two-way discussion, not just for the manager to evaluate. Evaluate, discuss, and share the review results with your employees instead of just reading a list of the employee's achievements and mistakes over the past year.
To have a successful review meeting, specifically analyze positive and negative employee feedback, repeat praise, and give fair reminders to everyone. You should prepare a notebook to take notes and maintain a moderate and friendly attitude with staff throughout the exchange and discussion process.
Some questions employers can ask employees include:
- What is the biggest achievement you have achieved in the past year?
- What is your goal for next year?
- What skills can you continue to develop in the upcoming year?
Make conclusions and publicize review results
After the meeting ends, the manager should summarize and publicize the year-end performance review results to all employees. These results need to be posted publicly internally, emailed to all employees, printed and notified to departments.
For the evaluation to be most effective, you must give specific reward and punishment regulations and measures if employees fail to achieve KPIs targets by giving them warnings, reviews, bonus reductions, or awards for exceptional performance at the end of the year.
Steps required in the evaluation process
4. Year-end review forms
Most companies and businesses conduct year-end reviews to summarize achievements and limitations that need to be improved. Here are some year-end review forms that your business can refer to:
See Template 1 of year-end review HERE
See Template 2 of year-end review HERE
5. Operational orientation and human resources development strategy after completing the review
The purpose of the year-end review is for employees to reflect on the results they have achieved and the things that have not gone well after one year of work. As a manager, you need to set goals to help your employees develop and improve better in the future.
As a manager, you must give feedback on the strengths and weaknesses of all employees to not make them feel oppressed or over-exalted. Not only do managers provide general assessments and feedback, but also solutions to each employee's problem. This makes them understand how you want them to change and how you will support that change process. Besides, don't forget to encourage employee feedback during the work process.
Through the results obtained from the year-end review, you will have a big picture of all personnel in the business and make appropriate adjustments and strategic plans for overall development during the upcoming year.
Adjusting and orienting development plans
A year-end review has considerable importance that any business cannot ignore. This is an opportunity for businesses to build a strong staff team and grow strongly in the increasingly fierce business and production market situation. Navigos Search hopes the above information has helped you have the most effective year-end review process.
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