Here's how you can inspire your team through performance evaluations.

I often hear from other business owners and managers about how much they dread performance evaluations. But honestly, if you set them up right, they can be something your team actually looks forward to. It’s a chance to really connect and dive into what your team members are aiming for in their careers. If you’ve got goals from the last review, you can see how they’ve done since then. In my reviews we list out all the wins (and where there is opportunity for growth) and have a chat about where they want to go next. Then, together, we line up some new goals for the next year that is intended to get them fired up—in a nut shell trying to set goals that are good for the company, but also exciting for the team too.

Performance reviews can be a powerful tool. I Set clear goals to help everyone know what success looks like. This boosts motivation because people feel invested and see a path to achievement. When goals align with personal aspirations and company vision, it creates a win-win situation. Employees feel valued and the company thrives.

1) Align with the Vision and Mission 2) SMART Criteria: Use the SMART criteria to define goals: Specific, Measurable, Achievable, Relevan, Time-bound 3) Monitor and Evaluate Progress 4) Celebrate Achievements 5) Review and Adjust By following these steps, you can set clear, motivating, and achievable goals for your team that contribute to overall success and foster a positive working environment.

Be Timely Be Specific Focus on Behavior, Not Personality Use the Situation-Behavior-Impact (SBI) Model Balance Positive and Constructive Feedback Be Genuine and Sincere Offer Actionable Suggestions Encourage Two-Way Communication Be Mindful of Tone and Delivery Follow Up

Monitor and Evaluate Progress: Regularly track progress towards the goals. Provide feedback and make adjustments if needed to stay on track. Celebrate Achievements: Recognize and celebrate when goals are achieved. This reinforces positive behavior and motivates your team for future goals.

Typically, there will be an unexpected email that says, "It's time for performance evaluations, please..." Provide employees with a calendar year of when performance evaluations are due and the period it covers. Discuss it as if you would any line item on the team agenda. Some supervisors will give in to anxiety and present it as if there is a high level of anticipation of someone's final rating. Presenting the evaluation as if the supervisor holds "power" creates a counterproductive hierarchy in the work environment. Keep it matter-of-fact. Give as many options as possible regarding how and when each team member would like to review their evaluation. Options include face-to-face, via phone, email, and scheduling an in-person meeting.

Evaluations are never going to feel inspiring. They imply judgement of one’s self and work and automatically put people into a state of fight/flight. Now conversations on the other hand are simply discussions. Even better if they are partner based and provide two way dialogue and feedback. With this approach you can create inspiration and motivation. Evaluations will never create great results no matter how you dress them up!

Performance evaluation is not just about assessing past performance but also about setting expectations, providing constructive feedback, and planning for future growth. Effective evaluations incorporate both quantitative metrics (such as sales numbers or project milestones) and qualitative feedback (such as communication skills or teamwork). They should be conducted regularly, ideally with ongoing feedback throughout the year to ensure employees are supported in their professional development and aligned with organizational goals. When done well, performance evaluations can enhance employee engagement, productivity, and retention by recognizing achievements and addressing areas for improvement in a supportive and constructive manner.