"Many cultural practices stay around beyond their useful life, and annual reviews are one of them," says David Hassell, CEO of 15Five, a San Francisco-based software company.
Instead, Hassell says entrepreneurs should replace annual reviews with weekly check-ins: "Communication today is instantaneous and people expect a quick response," he says. "To wait until the end of the year to provide employees with helpful feedback is just too long."
While compensation reviews can be held annually, entrepreneurs would benefit from weekly performance evaluations. If you're not sure they're for you, Hassell offers five reasons why annual reviews are outdated:
1. They aren't mutual. Annual reviews are usually a one-way street, with the business owner giving the employee feedback. Weekly reviews, however, offer employees an opportunity to share their feelings.
Hassell suggests asking employees these four questions each week: What are your successes and what's going well? What challenges are you facing, and where do you need help? Do you have any new ideas that could improve your job and/or the company? How are you feeling and what is the morale around you?
The answers should take 15 minutes to prepare and five minutes to read. Employers can use the answers to provide quick feedback and engage with their employees. Hassell's company, 15Five, offers software that helps small-business owners check in with their employees, or you could do this in person or via email.
2. They don't measure the heartbeat of company. When you review your employees once a year, you get one touch point, says Hassell. Weekly check-ins provide 50 touch points.
"Annual reviews feel burdensome to those who must prepare them," he says. "Weekly check-ins are moving, lightweight and agile."
Read more: http://www.entrepreneur.com/article/230513