Now that we’re into November, the end of the year is approaching fast, with thoughts turning to family gatherings, travel and holiday shopping. This is also the time of year when owners of many small businesses—including advisory practices—turn toward year-end performance reviews for their employees.
I’m not a big fan of employee reviews of any kind; In fact, if advisory firm owners structured their compensation/bonus plans right, they’d never have to do another review. But that’s the subject of my December column in Investment Advisor, so you’ll have to wait a few weeks so see what that’s all about.
In the meantime, I recognize that many advisors will be doing performance reviews in the remainder of this year, and to them I offer one piece of advice: To be effective, performance reviews have to be two-sided: You have to review your employees, and they have to review themselves. That’s because reviews aren’t just for giving feedback. You also want to check in to see how each employee is doing within your organization.