December might be the most important month of the year.  Amidst all of the priorities you juggle during the year, employee performance reviews and goal setting may be the most critical to your business success.  December is a perfect time for this as you end the current year with reflections on the past, and look with anticipation to the future.

The first step is to evaluate performance against expectations set last year.  Prepare diligently and come to this encounter with your employees with specific examples of performance to support your comments.  Avoid indirect feedback, and instead focus on observations and facts.  Highlight and celebrate performance that was above expectations, and constructively discuss areas for improvement.  The goal of this portion of the annual review is to connect your employee’s performance with your expectations and leave your employee with a clear understanding.

Constructive feedback on areas for improvement should not be a surprise in the annual review process.  If you have done your work correctly, the annual review should be a summary of what you have already discussed throughout the year.  Don’t wait until the annual review to spring surprises on your employees about missed expectations.  This occurrence causes frustration, reduces morale, and is a diversion from the main focus – directing the expected performance for 2019.

Plan ahead and develop 3-5 measurable goals for each employee based on their role in the business.  Share the specific goals with your employee, obtain their feedback and agreement, and discuss barriers to reaching them.  If the goals are unrealistic, your employee will not be motivated to achieve them.  If they agree with the goal and can visualize reaching it, you have obtained their buy-in and will have a higher probability of success.  The priority in this portion of the annual review is to ensure that there is alignment between the employee’s goals and those of the business, and that there is clarity and understanding.

In addition to specific measurable goals, be sure to include an expectation of growth in their intellectual, leadership, and job related skills.  An employee who is challenged to grow in these areas will become a more valuable member of your team, and grow as a person.

Don’t be surprised next year if you don’t hit your goals, if you didn’t do a great job in planning and aligning your employee’s efforts.  Start now for a successful 2019.