Archive for the ‘Performance Reviews’ Category

The Downside of Infrequent Performance Reviews

angry womanIs it part of your job description to complete regular performance reviews? If so, this is not something you should take lightly. It is important to do this at least once per year with each employee that you are responsible for.

So, what are the downsides of infrequent performance reviews?

  1. Employees don’t have any feedback on what they are doing right, what they are doing wrong, etc. In turn, they continue doing things the same way and never progress as a worker. In the end, both parties are held back from reaching their maximum potential.
  2. Out of touch for too long. Let’s be honest, there are times when you go month after month without speaking to some employees. While this is more common in large companies, it happens everywhere. Business owners need to share their vision with employees at every turn in the road. With an annual performance review, you will have time to focus on each employee’s contribution to the company.
  3. One missed review can cause future trouble for you (the owner), the employee, and others in the company. Take this situation, for example. You have to fire an office manager because he failed to meet your expectations. While you have the right to do so, wouldn’t it be better for both parties to discuss this in a performance review?

Performance reviews need to occur regardless of salary expectations, such as a raise. It is not always about money. A review shows leadership and coaching, while ensuring that employees are growing and moving towards company goals.

Now do you see the downside of infrequent performance reviews? Avoid falling into this trap, or face the trouble outlined above.

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Category: HR Communications, Performance Reviews

Best Exit Interview Strategies

An exit interview is one of the easiest ways to reduce turnover in your company. It usually takes about 5-10 extra minutes to talk to an employee who is voluntarily leaving, and an interview can reveal information that you’d never learn from your current employees. Most employers who ask the right questions during exit interviews find departing employees extremely frank and helpful.

Even though exit interviews can provide invaluable information, studies have shown that most companies do not have a solid exit interview strategy in place. If you don’t have an exit interview process, follow our simple steps to get the most out of your exit interviews.

  • The best time to ask employees the questions you’d ask during an exit interview is when they’re still happily employed. If you learn about problems within your company before it’s too late, you can stop dissatisfied employees from leaving in the first place.
  • While some companies give departing employees a form to complete, we recommend a face-to-face meeting. This will produce more honest answers and provides more opportunity for follow-up.
  • Make the exit interview comfortable. Employees should know that there won’t be retribution for an honest discussion.
  • If the employee who is leaving is extremely valuable to your company, consider asking if there’s anything you can do to encourage him to stay. It can be relatively easy to retain an employee if compensation is his primary reason for leaving.
  • Examine all feedback gathered from exit interviews and create policies that address recurring issues. The best exit interview in the world won’t do any good if it doesn’t lead to change.

The following are a few questions you may want to ask during an exit interview:

  • What is your primary reason for leaving? Are there secondary reasons?
  • Was there one event in particular that made you leave?
  • What were the most and least satisfying parts of your job?
  • Did your duties meet your expectations?
  • Did anyone in this company discriminate against you or harass you?
  • What would you do to improve our workplace?
  • Were you happy with your compensation?
  • Did you feel communication with management was open during your employment?

If you’re looking for more ways to reduce turnover, consider total compensation reports.  These reports show employees exactly how much their benefits are worth.

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Category: HR Communications, Performance Reviews, The Interview

Real Examples of Creative Employee Perks & Benefits

Trying to think of creative perks to motivate your employees? Here’s a list of some of the most creative perks we’ve come across from the 2010 and 2009 Fortune “100 Best Companies to Work For” issues to help get you started. While your business may not be able to afford many of these perks, these examples can at least help you start thinking outside the box as you brainstorm ideas for perks.

  • Qualcomm hosts a weekly farmers market that allows employees to stock up on healthy food.
  • Umpqua Bank lends employees money for business attire purchases and sets up a payroll deduction so the employees can repay the bank at no interest.
  • Stew Leonard’s Company invites employees with 20 years of service to dinner at the home of the company’s founder with a gourmet meal and fine wines.
  • Paychex has an extensive employee wellness program that awards up to $300 to employees for doing activities like getting flu shots and dental check-ups, attending aerobics or yoga classes, running a 5K race and biking to work.
  • Atlantic Health rewards its employees with a ton of vacation. All employees who have been with the company for at least 5 years get 28 days of paid vacation. New hires receive 18, 23 or 28 vacation days depending on their positions.
  • The Marriott hotel chain helps employees and their immediate family move by assisting with buying or selling a home, closing and settlement, mortgages and moving.
  • Two artists-in-residence work full-time at SAS and have produced a 3,000-piece art collection.
  • Genetech offers $4 per rider per day for employees who offer carpool rides to their coworkers. Employees who commute by bus, train, van, ferry, or bike also receive $4 daily.
  • Vanderbilt gives their employees 70% tuition subsidies to attend any college in the U.S.
  • Scottrade considers opening an office for employees who want to relocate in an area where a branch doesn’t exist. The company has already done this for more than 20 employees.

Show your employees how much their perks are worth through a Total Compensation Statement.

Do you have a creative idea for giving your employee perks? Would love to hear it in the comments below!

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Category: Performance Reviews, Reducing Employee Turnover, Total Compensation, WorkPlace Culture