Performance review is not an employee’s enemyHere's how you can use it to your advantage.

Performance reviews often ignite anxiety among employees, all the more for those who have just started working. The reason is simple: they are evaluated based on the performance of a certain period and then given an appraisal or feedback.

Now, the common problem faced by many individuals is that they do not know how to present their strengths, highlight their achievements and contributions during the assessment, or to leverage critical feedback for their own growth in the long run. Understanding these aspects can help individuals successfully navigate the review period. Let us start by knowing how a performance review works.

Murali S, CHRO, AscentHR, a people consulting company, says performance reviews have 3 key purposes: setting and agreeing on the goals/KRAs based on job expectations; providing periodic feedback based on measuring progress against the goals/KRAs assigned; providing differentiated rewards based on performance achievement.

The reviews help drive productive conversations on whether employees are meeting their performance goals and what is expected, says Yadhu Kishore Nandikolla, Head of Human Resources, MassMutual India, a GCC of MassMutual US. These also help identify growth areas, improvements needed and the areas where an employee excels.

Performance reviews are also necessary for professional development, communication and employee engagement, and succession planning.

AI’s incorporation in the performance review process

Most organisation’s performance management processes are delivered through a human resource management system (HRMS) tool to enable smooth flow of the process, says Murali. Talking about AI’s integration in the review process, he says it is yet to make the desired change though some AI applications deliver constant updates to employees.

Review dashboards and other real-time feedback mechanisms also provide continuous insights into performance and aid in understanding what adjustments need to be made promptly. Nandikolla says many of these are now driven by AI. Despite such systems’ ability to offer bias-free data-driven insights, he says they should be approached cautiously, and overseen by human reviewers.

Data has other uses, too, in reviews. Data-driven insights can give continuous feedback, predictive analytics, personalised development plans, 360-degree feedback analysis, language processing feedback, skill gap analysis, objective performance metrics and bias reduction, says Gunjandeep Kaur, Director-HR Business Partner, Model N, a cloud-based platform offering revenue management solutions for high-tech and life sciences industries. This is where AI has helped. But she too says there has to be a balance of technology and human judgement while using it to ensure ethical and transparent use.

Tips to handle the review process

Freshers need to have an open mind during the feedback sessions and take feedback as improvement areas and not failures, says Murali. In addition, individuals should not compare their performance with that of others. Look beyond salary change as an outcome of the evaluation process. For a positive evaluation, he advises individuals to ask questions on how to grow in the company, what skills should be developed and how to show differentiation in contribution.

As each organisation follows a different format in review and rating, Nandikolla says early career professionals should be aware of how their performance is evaluated. Keeping track of successes and accomplishments regularly can help. Another tip he offers is engaging in candid conversations with managers to understand more about the performance process.

Kaur suggests employees engage in self-reflection, gather feedback, assess skills and, above all, keep a record of all the accomplishments, feedback and projects received throughout the period.

During the evaluation or review, individuals should be open and receptive, highlight achievements, acknowledge areas for improvement, ask relevant questions, seek guidance, stay professional and positive, and express gratitude, adds Kaur.

Road map in case of negative feedback

Offering a few ways to handle negative feedback, Murali says keeping an open mind is very important. Asking where you did not do well, what skills you need to do better, and seeking the manager’s support to join specific learning programs can help improve an employee’s performance. Understanding whether the negative feedback is due to a gap in skills or behavioural expectations is also of utmost importance. “Once you have the required clarity, devise a joint plan with your manager to address the area of improvement,” he adds.

Embrace constructive feedback and avoid an emotional reaction, reflect on the points raised by the manager, and seek clarification for a better understanding, say experts. They also suggest looking for recurring themes in feedback, reaching out to mentors for valuable insights, showcasing positive change, documenting progress and staying consistent and resilient as ways to bolster growth. Approach the situation with a growth mindset and use it as a stepping stone for continuous improvement, adds Kaur.