How Three Companies Handle Performance Reviews: When it comes to evaluating your employees, there's no one-size-fits-all way to do it.

AuthorCoodsell, Brittny

You-as the boss-might dread giving employee performance reviews. But giving effective reviews can spark goodwill. You don't even have to give traditional reviews. Some companies are taking a modernized approach that incorporates a feedback loop and a focus on company values. What's most important, though, is to have some system in place. Here's what the experts say:

HOW MALOUF HANDLES PERFORMANCE REVIEWS

Brian Blotter, Human Resources Manager at Malouf, says managers typically don't like to do evaluations or reviews. And employees often don't like to attend. "Everyone kind of has their guards up," he says. Mr. Blotter says the company schedules monthly one-on-ones with employees.

Employees receive a copy of their performance review, which shows questions based on the company's values. The employees self-evaluate on that form, and set goals to become better. The managers also assess the employee's performance, Mr. Blotter says, and then conduct the evaluation.

Setting unrealistic expectations is unfair to the employee, and asking better questions helps. "A lot of managers don't understand the day-to-day tasks that their employees are doing. Sometimes we just look at the big picture and say, 'Why didn't that get done?' Where, maybe, 20 other things got done before it," he says.

One challenge is when the boss likes one employee's personality more than another employee's personality. When that happens, some companies rely more on a buddy-buddy system for reviews and rewards, like getting a raise because the employee is the manager's friend-not because the employee deserved it. "You might hang out with some employees in real life after work, or not, but you still have to treat each employee the same and be fair," he says. "That should show in your evaluation."

HOW LARRY H. MILLER SPORTS AND ENTERTAINMENT HANDLES PERFORMANCE REVIEWS

Michelle Smith, Vice President of People and Culture at Larry H. Miller Sports and Entertainment, says their ultimate goal with performance management, which includes reviews, is to provide an outlet for feedback. That could be employee-to-boss or boss-to-employee. "You really won't find a standard recipe for performance management," Ms. Smith said.

Larry H. Miller Sports and Entertainment, for example, recently adapted a review format that Netflix uses called the 'Start, Stop, Continue' Method. First, start with areas you want to focus on, like the employee's personal growth. Second, stop and look at areas in your...

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