Ditch the Annual Employee Review – Do This Instead

Every year, thousands of restaurants and hotels gear up for weeks of stuffy, time-consuming, and stressful annual employee performance reviews. Countless studies have proven yearly reviews are ineffective in motivating employees or encouraging productivity. So, why should restaurants and hotels stick with this outdated practice? Simple – they shouldn’t!

Here is how hospitality leaders can build a performance feedback system that motivates employees:

Regularly Schedule Check-ins

If you wait a year to do a review with a hospitality employee, there is a good chance there won’t be an employee to give it to! Employee turnover in this industry is always high, and providing regular feedback is proven to slow the turnover cycle. Consider weekly, informal one-on-ones with managers to check in on how the team is doing. For hourly and part-time employees, finding time to meet can be tricky, so consider monthly or quarterly intervals.

Have Goal-Based Meetings

Standard performance reviews are vulnerable to being too subjective and reactive. Remove the chances of managers’ personal bias altering a review’s results and focus on predetermined goals and metrics. Whether you want to reduce service errors, improve upselling, or lower your inventory turnover, set those goals with the employee ahead of time to help them stay motivated and focused between meetings. This will bring purpose to your meetings and the employee’s work.

Remove Pay from the Conversation

If the only outcome of a performance review is determining compensation, that will be the employee’s sole focus. But, if the focus is on actionable outcomes meant to improve future performance, rather than simply reviewing past performance, everyone will gain much more from the conversation. Use hospitality industry salary benchmarks and alternative performance measurement models to make more accurate pay increase decisions.

Let Employees Set the Meetings

People are driven by different factors, not just by a paycheck. Even the most productive staff member may need regular feedback to stay focused.

Encourage Employee Feedback

Employee/employer feedback should be a two-way street. Actively seek feedback about how leadership can better support the team. As uncomfortable as that can be, it is essential for teams to feel valued.

Find Hotel and Restaurant Managers Ready to Motivate

Regular feedback encourages management to take on a more coaching-oriented leadership style. Our experienced Hospitality Recruiters at Horizon Hospitality can find talented professionals who will motivate teams and drive performance. Contact us today to learn how!



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