Having a performance review system in place for your employees is key if you want your business to be successful.  The performance review process keeps a line of communication open between managers and those they supervise.  It greatly increases employee morale if they receive praise for what they are doing right and feedback on what can be improved, as well as the opportunity to express their thoughts on areas of concern within your organization.  Consider that you very well could have an employee with an idea that will save your company thousands of dollars, but he or she might never share it unless they are given a forum to do so.  Below are some tips for making your performance review program the best it can be.

·         It is extremely important that every employee be trained regarding the company’s performance review system and how it works.  Additionally, all managers should be trained on the proper ways to give and receive feedback, both positive and negative.  Managers also need training on specific employment laws, such as those pertaining to legally protected leave and accommodations for people with disabilities.

·         Regardless of how many meetings your performance review requires managers and employees to have each year, it is important for everyone to think of this process as an ongoing one which takes place day in and day out.  Any problems which may arise on anyone’s part should be addressed immediately, and not shelved until the next required meeting.

·         Make sure employees are aware that participation in the performance review process has a clear link to their success and growth within the organization.  One way to do this is to show how voluntary participation in training classes can lead to better reviews and future promotions.  Relatedly, you should also make sure employees clearly understand the correlation between their performance review and future salary increases.

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