Recently I was asked by the young owner of a growing landscaping company if I thought annual performance reviews were worthwhile. Many companies in corporate America have moved away from them, believing that the time they take does not deliver enough ROI. I agree they take time—and time is money, especially in an industry like ours—but we continue to find value in them at Grunder Landscaping Co. When approached right, performance reviews can help drive accountability, develop your team, and improve your employee retention rates. Here’s what we’ve learned that works:
Keep them simple and to the point. Our HR director and group leaders schedule the meetings in the early morning, before our field teams head out; some are as short as 15 minutes, while others may take up to an hour. We use a standard evaluation form to address whether a team member has met, not met, or exceeded expectations in key areas, and we document development items, their timeline, and who is responsible for what. Our HR director sits in on the reviews to improve accountability, to learn what our team members enjoy and don’t enjoy about their jobs, and to ask each employee if there is anything they need to fulfill their roles that they don’t have.
Get H.O.T.—Honest, Open, and Transparent. The best way to solve a problem is directly and fast, before it has time to balloon into a major issue. If a team member is not meeting your company’s expectations, address it then and there; don’t file it away to spring on them during their review. Have frank discussions about what they need to work on, be specific, and document the steps they need to take to get there. The review provides another opportunity for you to discuss their progress. Most people want to do good work; give feedback with the goal of helping them to do that.
Recognize your rock stars. Just as with addressing problems, you should be recognizing team members who do exceptional work all year long. The review provides you with a more formal occasion to do so and to document it. Tell them exactly what they’re doing well and outline what their future career path with your company may look like if they continue to deliver. Don’t expect to retain your top talent if you’re not proactively providing them with opportunities for growth.
Motivate those in the middle. The employee who is meeting expectations—not failing, not exceeding—needs your attention, too. If you think they have more potential, suggest some areas they could work on in the next year. At GLC, we’ll use our org chart to point to the next promotion a team member can get, and then discuss what certifications or skills they need to get there. It’s then up to them to decide whether they’re happy where they are, or if they want to advance.
It takes a lot to build a successful landscaping company. If you’re clear and deliberate about your objectives, performance reviews are one tool that can help get you there.
Have a great week!
Marty Grunder
President & CEO
The Grow Group and Grunder Landscaping Co.
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