Learning the Coaching Based Performance Review

What is the coaching-based performance review?

Coaching-based performance reviews are a new approach to evaluating an employee’s performance. This new approach stresses a developmental manager-employee relationship.

Traditional performance reviews were archaic in the sense that they involved just giving ratings and judging performance.

On the other hand, coaching-based reviews highlight growth and setting goals. The manager takes on the position of a coach. The manager will guide employees to their full potential. The old performance reviews solely evaluated past performance.

This approach focuses on the individual rather than the work by stressing continuous development. Before, companies used to treat employees as just their ‘workhorses.’ Now, these firms value the individual and understand everyone has a different life story and purpose.

These unique elements are tapped into and utilized to get the most out of the employees and work at the highest efficiency. This shift to a supportive work environment is more rewarding.

The new approach works on building employees up.

The Need for a New Review Approach

One might ask why has this new review approach even begun. That is a valid question. Employees were taught to do their work for so long, and then once a year, they will be ‘graded.’ Now, they can work together with their manager?!

Today’s workplace is unlike that of 10 years ago. Rather than making employees accomplish the same tasks as their coworkers who share the same role, companies want to utilize employees’ strengths.

Instead of criticizing employees, managers want to play to the employees’ fortes. This environment fosters learning and engagement. People would want to do their work.

This article will cover everything about coaching-based performance reviews. I hope this article allows readers to learn more about this approach and, hopefully, inspire organizations to use this approach for improved employee development and company success.

Companies should embrace this approach. As a result, the workplace would promote growth. One would feel a shift from an ‘every man for himself’ culture to a community.

Benefits of The Coaching-Based Performance Review

There are numerous pros to this approach. That is why this approach has become popular and has remained relevant these past few years.

1. Increased productivity

Coaching-based performance reviews allow employees to be more productive. When it comes to working for an organization, that organization will do almost anything to become more efficient.

In this case, companies have a lot to gain by adopting this approach.

It is a natural inclination for humans to do a certain task if they are supported. In a job setting where employees toil away to impress their manager, this approach will garner major traction.

Employees like to belong at a company that rewards them accordingly for their efforts.

These reviews give employees the right feedback and mentorship to keep them engaged and wanting to improve. Employees will feel more comfortable with the work as managers work with their strengths.

2. Manager-employee partnership

Another way this approach plays to the employees’ strengths is by allowing the employees to set goals with their manager. This allows the goals to align with the objectives of the organization.

This not only adds more commitment to the company but also provides employees with a sense of direction.

3. Increased communication

Another important benefit is the increased communication between ‘coaches’ and employees. Once an employee sees that their manager is willing to work with them and plan their work trajectory with them, they will confide in their manager more.

Results in a sense of increased trust and transparency. Currently, the workplace portrays managers on a whole different level as employees. In turn, some employees are anxious to speak to their managers. Through this method, employees will want to talk to their managers.

If the employee feels comfortable speaking to their manager, then the organization is moving to the right place. A culture of working with one another leads to greater problem-solving and success.

4. Employee satisfaction

All the benefits mentioned above lead to an even greater one. Employee satisfaction.

No matter which industry or line of work, satisfaction is key. Perhaps the most important aspect of any organization. How happy are the employees?

If the manager maintains a consistent and regular behavior of speaking to employees about their feedback and providing growth areas, employees would feel more invested in the company. This all deals with a psychological concept known as Maslow’s Hierarchy of Needs.

Essentially, this states that to be your fully-realized self, that is, the version of you that is most productive, you must first feel a sense of belonging. In the setting of an organization, one of the ways to do this is by using this performance review approach. 

Employees would feel cared about by focusing on the individual, their career progression, and their strengths. This increases their loyalty to the firm.

The result of great employee satisfaction is retention. Retention rates deal with how many employees continue to work for the firm rather than leave. If the organization executes this approach properly, then turnover rates should decline, and retention rates should increase.

Each organization has its own culture and method of going about things, but it is safe to say that this method leads to many benefits.

Challenges of The Coaching-Based Performance Review

The performance review style has a few drawbacks. These mainly have to do with the impracticality of the review, since it is a new practice so, there are some kinks to be worked out.

1. Lack of applicability: Since this method relies on subjectiveness, there can be some inconsistencies. Since each review is tailored to the employee, there is a lack of standardization. If employees move jobs, then the new company may not be able to fully understand the employee’s achievements.
2. Resources: Numerous resources must be expended to make this process work. ‘Coaches’ need to take time out of their day to conduct meetings. A lot of training is needed.
3. Employee resistance: Employees may be hesitant to work with this method. Long-time professionals may be resistant to change to this modern approach. Others may feel that the emphasis on continuous development is not the right way to grow and that objective feedback is better.
   The approach has some cons. If the company can discuss its intention with using this method with its employees, then perhaps a conclusion can be reached.

Key Elements of the Coaching-Based Performance Review

When adopting this approach, it is important to execute a few things. Without them, the review would feel incomplete and not benefit the employees and organization as much.

Remember to value the employee. Employees are as, if not more important than the executives. Companies must make sure the employees are satisfied. Utilize the elements listed below to make the performance review effective.

1. Make the employee feel comfortable, make the environment safe

To start, the main point of the coaching-based review is to make employees feel more comfortable and to bring out their strengths to benefit the company. In this way, the company will work closely with the employee and guide them through their career plans.

All this begins with a safe environment where workers can freely speak their minds. Remember, managers are like ‘coaches.’ They must work together with the employees.

So, the first element for a successful review is a safe environment that encourages honesty.

2. Improvement areas

Next, addressing the areas where the employee can improve is key. There would be no benefit if the employee had nothing to work on. This is why you should always identify at least one area. This gives the employee an agenda to work on until the next performance review.

Make sure this is delivered through constructive criticism. This is the most supportive way to go about this.

3. SMART goals

The next part is to set SMART goals. This is nothing fancy. Just make sure when you state your goals, you make them Specific, Measurable, Attainable, Relevant, and Time-bound.

SMART goals provide employees with clear guidelines and reference points to track their progress and achievements throughout the review period.

When using these SMART goals, it is also important to make sure there is a plan of attack. How do you go about achieving these goals? What support will you need?

4. Psychological tools

There are plenty of psychological tools that are implemented in this approach. The approach branches off of the ‘coaching psychology’ style. Read about that here.

Then, there is the use of reinforcement and punishment. Good behavior will be reinforced, while negative behavior will be punished. If managers stay on top of the employees’ work and accordingly reinforce or punish, employees will feel engaged.

If employees know that they will be applauded or given a “Thanks!” when they do great work, then they will likely remember that instance and strive to work like that to receive the reinforcement again.

As mentioned before, each employee needs to feel a sense of belonging. If the organization and manager can successfully do this, the employee would be more likely to produce good work and work with the ‘coach.’

5. Regularly meet

Last but not least, this process is not a one-time thing. One-time was for the traditional, annual performance reviews.

The new approach is more of a continuous process. Managers and employees should check in often. This makes the employees feel supported and stable at their jobs.

Coaching-Based Performance Review Example

This approach is more informal as the manager and employee must work together. It is important to understand how this review works. Here is what a coaching-based performance review should look like.

Keep in mind that the actual review may take place face-to-face. But this is what the dialogue would roughly look like.

Section 1 (Introduction)

“Thank you for seeing me today, [name of employee]. I would like to take a look at your work and provide feedback. Let’s begin.”

Section 2 (Strengths and What Went Well)

“You showed some strengths during this period. [Talk about the employee’s strengths]. In particular, this strength of yours helped during [specific instance]. You have made a positive impact on your team. You helped the team succeed.”

Section 3 (Where the Employee Can Improve)

“There are some places you can improve in. Your performance has been great, but let’s see how you can contribute more to [name of company]. [Talk about the employee’s weaknesses and how they can benefit the company if addressed].

[Talk about a general area that can be better addressed, one common example is time management skills]. Let me work with you to understand your needs and set goals.”

Section 4 (Set SMART Goals)

“Let’s establish some SMART goals for you. These will be important to keep you focused.

The first goal is [state a goal].

• Specific: [make the goal as detailed as possible and use action words]
• Measurable: [quantify what you hope to do and how you will evaluate the goal]
• Attainable: [is the goal possible to accomplish?]
• Relevant: [how does the goal relate to your role and improve the business]
• Time-bound: [set a date or time frame by which the goal should be achieved]

Repeat the 5 lines above for 2 more goals. Try to have 3 goals in your mind for this upcoming review period.”

Section 5 (Conclusion)

“The organization is committed to supporting you. We will have regular check-ins to check your progress and address any other issues that come up. You can contact me if you have any concerns or questions.

Thank you for working with me on this. I want you to succeed and help you excel in your role. Your growth is key to this organization. Let’s make it happen!”

Remember to let the employee speak too during this. Hear them out and make any adjustments.

Conducting a Review

As this process differs from that of a traditional performance review, there are different measures to conduct the review. First, managers lead this discussion. Hence, they must be fully prepared with information about the employee from the past review period.

Understand what the employee excels at, what they need improvement on, and opportunities to grow.

When it’s time to start the review, make sure to compliment the employee and speak about the employee’s value. Describe their contributions.

Then, during the review, the manager wants to learn more about the employee. What does the employee value? What are their goals and career aspirations? What motivates them? Are they facing any challenges?

It is important to understand the person first before discussing work. These deep questions should be aimed at self-reflection.

When it is time to create the SMART goals, make it clear that the employee can approach the manager at any time.

Finally, it is necessary to set up a regular system for these manager-employee meetings.

If the manager follows all these steps, the system will work wonders, and employees will feel supported in the workplace.

Implementing the Coaching-Based Performance Review

When it comes to adopting this review system in the organization, there are a few steps to ensure the approach succeeds.

One step is to train managers to be more encouraging and empathetic. If this is done, employees would feel welcomed at the organization and reach out to the managers about whatever is on their minds.

Another tip is to train managers in effective communication. As this approach emphasizes the need for honesty, it is key that managers can actively listen and provide feedback while not diminishing the employees’ feelings.

Managers must act like real coaches. This will make the approach more effective.

Next, every organization has a different culture. To make this review system work, it is key that the culture also welcomes progressive feedback and growth. This shows that the review process is not a one-time event but rather a recurring event.

This promotes learning and improvement.

Finally, make it 100% clear that employees can talk to anyone at the organization. Employees must feel supported personally before they can do their work. If the organization can be there for employees, then this process should be effective.

Some practical implementation advice is:

• Offer seminars and workshops to coaches for active listening and giving feedback
• Partner with a consulting agency
• Offer free certification programs on interpersonal skills
• Establish the expectations of employees from day one
• Have managers check in with employees in multiple ways (ex: email, meetings, etc.)
• Let employees give feedback to managers
• Allow managers to share what works best for them with the whole company
• Offer mentorship opportunities to best support the employees’ development plans

Conclusion

Coaching-based performance reviews offer many benefits to companies and employees.

If a safe environment is maintained, organizations have a lot to gain. They can acknowledge the areas their employees excel in and also pinpoint what can be improved. Coupled with SMART goals, these improvement areas give employees a focus.

Since the approach is ongoing and managers must meet with the employees regularly, there are opportunities for feedback, which can then motivate employees.

This review method drives organizational success. It’s time to move on from the traditional approach to a more supportive one.

The new approach serves as a platform for employees to feel heard and supported professionally. With ongoing support, this approach would foster meaningful discussions between managers and employees.

If used, the method would bring out the best in employees. However, in the process, resources would need to be expended, and there are other downsides.

The method certainly has its pros and cons. It is up to the company to gauge if it is worth implementing. 

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