Why reviews aren’t just about pay

Economic conditions mean many will not have received a pay increase this year. But this can also lead to suspension of staff performance reviews as promotions and salary increases are no longer possible to acknowledge progression.

For retailers, stopping this practice could result in the failure to achieve optimal service and sales.

Although many retailers can no longer offer a financial reward for improved service, those that continue to evaluate staff performance will reap the benefits, as will their staff.

Human resources consultant Russell Andrews says: “A personal review is about personal development, not just financial reward. It’s about looking at an employee’s development and the challenges that face them in an ever-changing and demanding climate. It’s about identifying their development needs.”

He adds: “Reviews are intended to enhance employees’ opportunities – they should look at their potential career paths and their development in the immediate and medium terms. Where do they need to improve their skills? These objectives don’t change in good times or bad times.”

For some retailers, the recession has put an end to performance reviews not just because good service no longer leads to financial reward, but also because there is no opportunity to promote staff.

Alex Foxell, director of HR at recruitment specialist Switch Consulting, urges human resources departments and managers to remember the economy will become more buoyant. Without reviews they may not be prepared for life after the recession.

He says: “Retailers will expand again when the recession ends, and to achieve that growth they will need more people and need to identify who is ready to move up in the company. Without performance reviews, it will be difficult to decide who the best candidates are.”

In the mean time, and when companies may still face redundancies, Foxell believes monitoring staff progression will mean the best people stay in the company.

“Retailers have made so many cuts there’s very little fat on most companies now,” he says. Without reviews, he says, it will be hard for retailers to know who they should make redundant if they need to make more cuts. “Losing someone who is key could cause a real problem across the business at the moment.”

Andrews agrees and says good communication could aid finances too. “Retailers need individuals to work more productively and this should lead to an improvement in commercial performance. Ultimately, reviews are beneficial for everyone.”