How Does a Performance Review Help Improve Employee Job Performance?

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Productive job performance is an essential element in the success of large corporations and small businesses. Employees are the lifeblood of a company, and their collective attitude can greatly affect the direction and objective of any business plan. There are several proven ways to increase employee morale, improve job performance and thereby boost overall productivity. These strategies include an established system of pay raises, coverage of critical benefits and the practice of open two-way communication. One of the most constructive ways to influence morale is with a yearly performance review.

Communication

Perhaps the most evident benefit of a review is the exchange of face-to-face dialogue in a one-on-one conversation with each employee. During a typical workday, employees and managers operate completely focused on the task at hand. They spend very little time briefing others on their current status. An employee review session presents an ideal platform for gauging the state of affairs for both employee and manager and making sure everyone is on the same page. This exchange also gives the employee an opportunity to bring up issues that may be frustrating her or suggestions to increase efficiency. Opening a clear line of communication between worker and supervisor aids the process of eliminating obstacles and improving operations.

Appreciation

A constructive attitude cannot be forced onto a person; instead, morale comes from a positive work environment and gratified contribution. People who consistently present their best deserve recognition for the role they play in the success of the company. Without this acknowledgement, an employee can feel taken for granted. As a result, he may begin to work less effectively. Additionally, employees who do not receive feedback on the execution of their job may lack confidence in what they are doing. They may be asking themselves, "Am I doing this right?" or "Is there a better way?" This vacillation in conviction can make an employee stagnant or ineffective.

Promotion

Financial compensation for a job well done is always a swift motivator for employee performance. An annual review may offer the opportunity to note the achievements of employees and determine whether or not their skills are being used to best benefit the company. A job promotion, even without a raise, can elevate employee gratification just as much as a pay raise without a title change. Having a clear and consistent structure for issuing promotions will affect productivity in a positive way based on the natural human response to a rewards system.

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