by Vaughan Granier
Performance reviews can sometimes cause stress to people managers because giving constructive performance feedback doesn’t always come naturally and sometimes can’t be taught. One has to walk the line between criticising and encouraging, moving forward and reflecting backwards. Luckily, HR Assured makes this all feel like a seamless process by offering documents, workflows and prompts to gently guide you through performance reviews so no one’s being pushed or pulled excessively.
Because we know it can be a struggle to get your KRAs done and dusted by review time, we’re sharing our best-practice tips to help you get them right every time. Here we explore the glowing core of performance reviews – Key Results Areas (KRAs) – and explain how getting started with a bit of planning and commitment from your leadership can help you make the most out of HR Assured.
Let’s look at how to cement KRAs so it’s all constructive communication and not criticism.
1. Understand the position
First things first: gain a comprehensive understanding of each position that’s being reviewed.
KRAs provide a framework for defining and measuring performance in specific areas of responsibility.
Effective KRAs make your business align efforts, track progress, and ultimately drive success. You’ll know a highly effective team and organisation because it’ll have great clarity regarding the KRAs.
KRAs can’t be defined without understanding the position. An organisation should analyse the job description, responsibilities, and expectations associated with each role to identify the core areas where the individual’s performance can significantly impact the overall success of the position and the organisation.
2. Identify your KRAs
KRAs are the critical focus areas that contribute directly to achieving an organisation’s goals. These areas should be specific, measurable, and aligned with the organisation’s vision and objectives. For example, a marketing manager’s KRAs could include brand management, lead generation, campaign effectiveness, and customer engagement.
3. Set SMART goals around your KRAs
Once the KRAs are identified, setting SMART goals within each area is crucial. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Each goal should be well-defined, quantifiable, attainable, aligned with the KRA, and have a clear deadline. SMART goals provide clarity, motivation, and a roadmap for success.
You should define KRAs not just around each position, but also relating to how the teams and individuals connect and work together for the organisation’s overall success. Introducing a global or “whole-of-organisation” perspective on everyone’s KRAs strengthens the requirement for communication, teamwork, and mutually beneficial efforts and actions.
4. Further Define Key Performance Indicators
If you’re wondering how can Key Performance Indicators (KPIs) be used in performance management, it’s like this: KPIs serve as quantifiable measures to evaluate progress and success in achieving the goals. KPIs should be selected carefully to ensure they align with the specific goals and reflect the desired outcomes.
For instance, if one of the KRAs is customer satisfaction, a relevant KPI could be the Net Promoter Score (NPS) or customer retention rate.
5. Establish performance metrics
Alongside KPIs, it’s essential to define performance metrics that allow for regular monitoring and assessment of progress. These metrics may include sales revenue, conversion rates, project completion timelines, quality ratings, or other relevant quantifiable measure. Performance metrics enable individuals and teams to track their achievements, identify areas for improvement, and make data-driven decisions.
6. Align and collaboration with supervisors, team members and others
When establishing KRAs, seeking alignment with all relevant stakeholders is a crucial step for businesses. Engaging in conversations with supervisors, team members, and other key individuals will ensure that the set KRAs are well-understood and supported and will contribute to the “whole-of-organisation” success. Collaboration fosters a sense of shared responsibility and ensures that the KRAs reflect the collective vision and expectations.
7. Make time for revision with regular review and adaptation
KRAs shouldn’t be treated as static targets but rather as dynamic frameworks that evolve with time and changing circumstances. In consultation with the employees, it’s important to regularly review the KRAs and assess their effectiveness. Given that they can easily end up gathering dust on a shelf as everyone gets busy getting products out the door, it’s wise to schedule review sessions and create a culture of accountability for what was originally decided. What leadership values and prioritises, and makes an obvious commitment to, becomes the culture of the workplace.
Finally, once you’ve tightened your KRAs, it’s time to read them to your staff and work out the way forward.
We wish you good luck with your performance reviews, but if you need documentation, advice and workflows around your annual reviews, clients of HR Assured can access HRA Cloud where you will find an abundance of resources.
If you’re not an HR Assured client and need some advice, the team at HR Assured can support your business on a range of workplace matters. Contact us today to arrange a confidential, no-obligation chat.
