Employee goals and performance reviews
Goals are an important part of a performance review; many times, employees are unsure of what their bosses expect them to achieve during the year.
By Adam C. Fahrenholz, Wilmer Pacheco, and Charles R. Stark
The article is a revision of the Employee Performance Reviews published in Feedstuffs, 2014, 86(49) by Adam C. Fahrenholz, Leland J. McKinney, and Charles R. Stark
The start of a new year is a good time to begin working on goals and performance reviews for 2024. Goals are an important part of a performance review; many times, employees are unsure of what their bosses expect them to achieve during the year. This often occurs at all levels within the management structure from the receiving operator to the feed mill manager. The establishment of goals that are agreed upon early in the year will help the employee and supervisor monitor the progress of those goals. While there may be several different strategies for creating goals, SMART goals were created by George Doran, Arthur Miller and James Cunningham. They wrote an article in 1981 titled “There's a S.M.A.R.T. way to write management goals and objectives” where they discussed writing goals that are Specific, Measurable, Attainable, Realistic and Timely (SMART). An example of a SMART goal may be to decrease the particle size of the ground grain by 100 microns in the first quarter of the year. This goal is specific as to what will be accomplished, the results can be measured by the particle size analysis program, the goal should be attainable by adjusting the roller mill or hammermill, decreasing particle size by 100 microns is realistic, and has a set period of 3 months. A SMART goal allows the employee and supervisor to evaluate the progress of the goal during those three months and make the appropriate adjustments as needed. Approaching the development of goals in this way is more effective than vague goals that are commonly written such as improve pellet quality or improve the efficiency of the feed mill. These types of goals are often not useful or achievable because they are too general and broad.
Goals should be included and discussed in the employee’s official performance review. Whether your company or facility is large or small, these performance reviews are critical to continuous improvement strategies. While the annual reviews should be in addition to informal performance reviews conducted throughout the year, this is likely the only time (other than a discipline issue) that a visit with the employee will be official and documented. It is important to avoid the habit of redefining goals and expectations so frequently that revisions become meaningless or continuously move the expectation target. Reviews should take place throughout the organizational chart, from hourly employees through upper management, and in all cases, they are a valuable tool and a chance to discuss past performance and goals for the future.
As anyone who has conducted a performance review knows, preparation plays a major role in a successful and meaningful review. The easiest way to prepare for a successful review is to follow a standard checklist. This ensures that items are not missed or forgotten and assures that all employees are reviewed in a similar way. One of the first steps on this list is communicating with the employee, making certain that the purpose of the review is clear. This is also a good time to provide the employee with instructions for a self-evaluation, which might include their collecting relevant performance data. Next, draft the performance review, making specific comparisons to the employee’s job description. The draft performance review provides a framework for the face-to-face meeting and helps keep things on track.
Obviously, the review process for hourly and supervisory employees will have differences. In some ways the hourly employee review is simpler, as it can follow a standard format. Hourly employees are often evaluated on knowledge relevant to the job description, the quality of work, attendance, showing initiative, compliance with safety and other policies, and general dependability but incorporating a couple of goals into their review creates accountability. The review of the supervisory employee is more subjective, deals with key competencies and development, and is based more on goals and achieving set objectives. Regardless of the employee, a consistent scale-based feedback system should be developed so that the employee understands where they need to improve, where they have made improvements in relation to past reviews, and where they are meeting (or exceeding) expectations.
When it is time to sit down for the in-person review, attitude is everything. Make sure the employee understands that the process is in place to help them improve as well as to gather feedback for the company on how it can help employees succeed. Keep in mind that the review needs to have two-way communication in order to be successful; ask for input and suggested solutions as the meeting proceeds. However, anyone can be guilty of adopting the victim attitude, so listen to concerns, but stop the “it’s not my fault” line of thought as soon as possible, since this type of discussion is rarely productive. Remember, this is a people business as well as the feed/animal business, and while compassion and understanding are good, being gullible is not. If informal reviews have taken place throughout the year, and if your planning steps have been effective, the information covered should not be a surprise.
Begin by reviewing the job description and verifying that the information accurately describes the employee’s responsibilities. Then review ratings based on performance compared to the job description and goals (make note of specific goals set during the previous year), reiterate existing and cover any new job or company expectations, and discuss any other job-related concerns. When commenting on performance, use actual data where possible (e.g., goals, KPIs); you should be prepared to discuss any discrepancies between the information you have collected and that which the employee brought with them or submitted as a part of the self-evaluation. Make sure to note where employees exceed expectations, and thank them for their attention in these areas. Then help them to evaluate how the skills and attitudes used in those areas can be put to use to help them improve elsewhere. Finally, have the employee sign the performance review so that the document can be included in their official file.
With the performance review over, what comes next? Looking at the long-term, decide how you will evaluate the goals just set forth. How often will you be monitoring progress and conducting informal “check-ups” to help the employee be successful? In the short-term, consider your own performance. Where were items identified as needing improvement, are there ways you could improve your management style to help the employee realize their potential? As a manager or leader, have you equipped yourself with the necessary skill sets? If you are reviewing the performance of someone that can successfully complete a job that you cannot, consider whether you have spent enough time walking in their shoes. Lastly, did the review, along with the reviews of other employees, identify any common areas where resources are lacking or could be improved?
Remember, annual reviews are about the overall performance, not the employees themselves. If this is clear to the employees, they are more likely to be active participants, which in turn makes the reviews that much more effective. Strive to keep reviews positive and constructive, and they will benefit both your employees and your business.
If your company has not conducted performance reviews in the past, a good starting point is the Employee Performance Review template included in Microsoft Office as well numerous outlines on the internet. Have a healthy and safe year in 2024.
