It seems that some contractors would rather not give an employee, who is struggling, an excuse to leave due to the accountability of a Performance Review. Funny thing however, most good workers, even those who can slip occasionally, want their performance to be assessed and discussed. They welcome this opportunity and the accountability that can come with its results. It’s only the lazy and contrary workers who breathe easier if they can live without any accountability.
Learn more by listening to Responsibility Enhancement!
[TRANSCRIPT]
We have arrived at the seventh and final installment of articles on the very critical topic of worker retention. During the time period I’ve spent writing this series (6-8 weeks), I have been contacted by a number of contractors on this very important topic. It would appear that at a time when the signs of increased construction may be upon most contractors, just as pronounced are the challenging signs of finding and keeping effective workers.
What makes Step #7 – Performance Review so critical for our consideration is that it may be as much of a review on how well we have executed Steps #1 – #6 as it is reviewing the performance of an employee. For a quick and final review of the first six steps, consider the topics that were addressed over the past six “chapters” of worker retention. (The first six steps are archived for your review.)
Step #1 – “On-Boarding”
Step #2 – The 90-Day Plan
Step #3 – Skill Training
Step #4 – Coaching & Mentoring
Step #5 – Engagement/Participation
Step #6 – Responsibility Enhancement
Step #7 – Performance Review
Let’s first clarify what this article is not going to address. I am not going to recommend a formal document to use when conducting a performance review. There are as many templates and formats for performance reviews and appraisals as there are contractors. Many are part of elaborate and expensive software packages or Internet services, developed in a way that an in-house employee, often the HR Manager, can easily oversee.
My quick word on this point: find or develop a document that is easy to use for both the leader conducting the review and the employee receiving the review. You’ll seldom find the perfect template or supporting system but you’ll be years ahead of many contractors by embracing a system and document…and then just “struggle forward.”
My purpose for this article is to provide insights on WHY to conduct performance reviews; HOW to conduct more meaningful reviews; and, WHAT the reviews should cover and address. Remember, while performance reviews should be conducted on all employees as a normal part of their continued employment, the Performance Review is an especially important tool in assisting contractors retaining their workers, especially the new workers.
First, let’s approach the WHY to conducting performance reviews.
When a new worker first begins their employment, they often ask three questions:
- “What’s my job?” (Job Roles & Responsibilities)
- “How am I doing?” (Performance Review)
- “Who cares?” (Leader’s Involvement & Feedback)
Even the “Carp-Worker” wants to know what the contractor thinks of them and their performance. However, since the majority of construction workers will be more like the “Fence-Sitter or Thoroughbred,” (i.e. Together these two groups make up about 80% or more of most construction companies.) new employees like to get a feel for how their leaders are viewing their performance.
The WHY of conducting performance reviews allow the new employee to assess where they are on the learning curve compared against where they thought they would be. It’s not uncommon for workers, especially those who are objective and sincere, to have a self-imposed expectation for their performance progress. Such workers are a joy to have working for a contractor. He or she can often nail down 99% of what their actual performance results are without getting it first confirmed by the contractor. Good workers know where they stand in their development and growth but the Performance Review allows them to confirm what they think and what their leaders are seeing; realizing that future opportunities are often tied to how an employee is observed to be performing.
The WHY also allows the contractor to assess how well they have executed On-Boarding, the 90-Day Plan, or provided the Skill Training, aka Steps #1 – #6. It’s important that contractors assess how well their employee retention strategies and tactics are working, looking to adjust and tune-up any effort made and to make it better. The Performance Review can expose weaknesses in a contractor’s approach as well as highlight good efforts that need to be maintained.
The HOW to conducting the Performance Review is perhaps as important or more to address than the WHY and WHAT together. So, let’s camp out a few minutes on this very important effort that contractors must strive to perfect.
Facts, actual and credible examples, and first-hand observations are all important to bring together at the Performance Review. It is the HOW to bring them together to be meaningful, accurate, and sincere that we need to address here. Consider several ways to execute the HOW.
- Provide a “mini-version” of the Performance Review prepared and executed at the first 30, 60, and 90 days of a new employee’s tenure. This review may not be as exhaustive as the annual review format but it educates a new worker on early progress and prepares the worker for what will become an annual event.
- Always conduct the Performance Review in private setting to allow and reinforce privacy and a comfortable presence.
- Always have prepared examples of observations made of the employee’s work practices or behavior.
- Allow the employee to complete a “self-assessment” form of the Performance Review document, if the same document is not used. (I recommend having your employees complete the same document that the leader will be completing to better benchmark the similarities and differences.)
- Always provide several positive observations along with areas needing attention. While there does not have to be a “1:1” ration of positive to negative comments, it is important that the employee knows that they are not a total and major “screw-up.” (Unless they really are!)
- Encourage the employee to ask questions about their concerns or need for clarification.
- Encourage open discussion of those observed areas that the employee may feel different than what was noted on the Performance Review.
- Always include a discussion about performance and behavior expectations. The leader should make this effort very clear if the employee has fallen from what is required or from his or her own previous positive “standards.”
- IF the Performance Review is expected to be primarily negative in substance, it might be wise to have two leaders participate in the discussion. Likewise, be sure to allow more time for the Performance Review as the final portion may be more coaching, counseling, documenting discipline, or a combination of all three efforts.
- Should the employee demonstrate “boiling” frustration, even anger, be prepared to take the discussion in sections. This can allow a bad tempered worker the time to calm down, in effect, taking the steam out of their anger.
- IF the Performance Review is going to be a “Perfect 10” discussion, do not cheat the good employee by short changing the setting of developmental goals, with action plans. The tendency is just to tell the “10” to, “Just keep up the good work.” Great workers do not always welcome such feedback. My experience is that the best workers want to be challenged further to grow and expand their skills, knowledge, and presence of responsibility and visibility.
- Always include a proactive goal setting effort with the employee. The goals can be on technical, attitudinal, or behavior in scope but need to be created for every worker.
- Include a brief but clear action plan that further drives goal achievement. This effort should provide what action the employee will take, what support effort will be provided by leadership, and what resources will be needed. The time line for achievement should bump up against the next scheduled Performance Review.
- A copy of the Performance Review should be kept in the employee’s personal file in HR. While the employee may have their own copy, what is more important for them to have is a copy of the goals and action plan that was created.
- Conclude the Performance Review with words of encouragement, no matter if the review was positive or negative in nature. Employees, even those struggling, can often strive to improve when they capture the sincerity of a contractor, or the leader, who conducted the Performance Review.
The suggestions just presented, while exhaustive, barely touch all that can be considered part of the HOW to conduct the Performance Review. It is important first to conduct a Performance Review on each employee, no matter how long his or her service with your company has been. While this effort takes time to complete, it is very critical to the overall retention of employees to be consistent with conducting regular Performance Reviews.
One additional thought on the HOW to conduct the Performance Review. Depending on the size of your construction company, I would recommend a minimum of one Performance Review per year. The new employee may receive 2-3 “mini-reviews’ just in their first ninety days as presented earlier, but the employee who has passed their probationary time should expect to receive at least an annual review.
Now, let’s turn our attention to WHAT should be addressed in the Performance Review.
The WHAT of any Performance Review should, at the minimum, include the following areas for inclusion in the review effort.
- Past performance and productive positives since last Performance Review should be included so both employee and their senior leader recognize growth and development.
- Observed “negatives,” or opportunities for improvement (OFI), that need to be addressed, corrected, and improved.
- Specific areas that the employee is to be assessed and reviewed. This might include areas such as: technical skills; job related skills and knowledge; behavior with co-workers, leaders, clients, and vendors; problem solving skills; attitude and their effort to improve; attendance history and adherence to company policies; etc.
- Tied to all of the above is the future effort that needs to be addressed for the employee. This includes the setting of improvement goals and the appropriate action plan of items to accomplish the goals.
- As presented earlier, there should be a “self-assessment” effort provided the employee. While the same Performance Review document to be used by the leader can be provided to the employee to use, it doesn’t necessarily have to be the exact same document. No matter your document, it is important to include the employee’s completed assessment in the Performance Review
The WHAT is rather simple to execute. The actual document used needs to be simple to understand, with enough room for writing observations and opinions, and future thinking enough that both the leader and employee are projecting where the employee needs to be by the next review time.
Some final thoughts on this seventh and last step to employee retention. Unfortunately, the smaller the contractor, general or specialty, the less I see contractors conducting any form of a Performance Review. I see this as both unwise from an employee growth strategy and as a way to retain workers, especially the better workers.
It seems to me that some contractors would rather not give an employee, who is struggling, an excuse to leave due to the accountability of a Performance Review. Funny thing however, most good workers, even those who can slip occasionally, want their performance to be assessed and discussed. They welcome this opportunity and the accountability that can come with its results.. It’s only the lazy and contrary workers who breathe easier if they can live without any accountability.
As I have written in an earlier article for this series, it’s not a matter of using one or two of the seven steps. Instead, it’s very important that all seven steps are executed. Unless you are ready to experience 10% – 20% of unnecessary turnover, integrating the “7 Steps” into your company’s strategy will retain workers and will help you fight off what looks to be a very challenging shortage of construction workers.
Review your Performance Review to improve your company’s performance!
