Conducting effective performance reviews can be challenging. They require significant management effort, and there's potential for conflict if an employee disagrees with the assessment. However, when done right, the process can be a rewarding experience that boosts a manufacturing company's productivity and strengthens employee retention.

Beneficial to you and your employees

A review can foster efficiency if employees take constructive feedback to heart. By learning about areas needing improvement, workers can refocus efforts to sharpen their skills. Also, if you offer clear advice or instruction going forward, your employees are more likely to meet company-wide objectives.

Positive feedback in reviews can boost morale and make employees feel appreciated and inspired to continue to perform at a high level. This often results in a better workplace environment, which leads to both higher productivity and greater employee retention.

However, don't discount the employee's side of the process. The review is an opportunity for employees to discuss their needs and what they view as obstacles to achieving the company's goals.

Differences between a subjective and objective review

A performance review may be objective or subjective — or a combination. An objective review is strictly based on hard data. Automated processes can eliminate the guesswork. An objective review may include:

  • Units produced compared to other employees,
  • Average time for units produced in relation to the company's expectations, and
  • Time spent on manufacturing activities.


A subjective review, on the other hand, requires input from sources such as an assembly line supervisor or a department head.

5 strategies for success

Consider these five strategies for improving your manufacturing company's performance review process:

1. Set employee expectations. All too often, employees aren't sure what the review is supposed to cover. If pressed on a particular issue, they might become defensive. Conversely, if you establish an agenda before meeting with employees, they can be prepared for what will be discussed and the evaluation will likely be more productive.

2. Keep it simple. Effective reviews focus on what's most important. The primary goal should be to help employees realize their potential. Don't get sidetracked by too many peripheral issues. If you find yourself veering off, get back on track.

3. Make the review a collaboration. The review path shouldn't be a one-way street. Provide employees the time to present their own long-term objectives and see how they align with your manufacturing company's needs. Furthermore, ask employees about obstacles they're facing and what can be done to eliminate or at least minimize them.

4. Present both sides of the coin. Although you may have to discuss some negatives, balance any "bad news" with some "good news" about the employee's achievements. Rely on the metrics but take a well-rounded approach to the meeting. In addition, highlight any milestones that the employee reached during the year. (Of course, if an employee's performance is poor enough that he or she is at risk for termination, you shouldn't sugarcoat the situation.)

5. Develop a plan of action. Don't just throw a bunch of suggestions against a wall and see what sticks. Lay out a plan, preferably in writing, that points employees in the direction you want them to go. Offer to meet at regular intervals to assess progress. This will help you align your expectations with those of your employees.

Take the comprehensive approach

Employee performance reviews are often completed as quickly as possible, with little thought given to providing the type of feedback to employees that will ultimately help a company achieve its strategic goals. Taking the time to conduct comprehensive reviews can be a win-win for your manufacturing business and its employees.