Why is a formal review process critical for organizations of all sizes?
An employee review process allows owners to look at where the organization is today and plan for the future. Reviews force owners to step back from daily operations and evaluate what the business needs by way of manpower to continue forward. How have the organization’s personnel needs evolved over time? What needs currently are not being met? Can an employee on staff fulfill those responsibilities, or will the owner need to seek skills outside the organization? These are questions that owners must constantly ask so they are prepared to handle growth. What should the process involve? In essence, a formal review process is one piece of the goal-setting puzzle for owners. Owners should meet with employees on a regular basis: annually, biannually or quarterly. Communicate how often these reviews will occur so employees know when to expect them. During the review, discuss shortcomings, positive contributions to the company’s success and what skills the employee may need. Allow employees an
