Navigating Conflict in Performance Reviews

Thank you for sharing your many and varied responses about the conflicts you are experiencing in the workplace. From new bosses and their expectations to disagreements about how we behave on video calls when we work remotely - it was fascinating to read your concerns and questions.     

The case study scenario that I’ve selected to consider today is one that covers managing expectations that some team members bring to their annual performance review process.

Performance review tension is common and it is more loaded this year as we continue to navigate the variety of complexities and rolling stressors that the pandemic has delivered.  

Many organisational changes are still taking place as we all find new ways of structuring our working day, and our teams, to meet the demands of the times. Add to that the daily nail-biting media catch-cry of looming inflation and rising interest rates and the scene is set for a performance review discussion which has a focus on the bottom line.

Recent statistics on resignations and labour force movement are quite significant, and managers are reporting more emotional exchanges and higher salary demands as team members seek recognition, reassurance and compensation in an unstable economy.

Today’s article focuses on the role of the manager and what might be helpful, and my next article will take up the same issue and consider the matter from the employee perspective, with some useful recommendations on how to navigate this process skillfully.

So how do managers navigate the challenges of the performance review process set against this backdrop of uncertainty and heightened cost of living pressures? And when employees are feeling more empowered to make work-life balance demands and/or are desperate to express their value to the organisation?

My clients are seeing an uptick in conflict around salary expectation and/or role classification which creates a fraught starting point to the performance process that can leave people managers and business owners nervous about reviews, wondering if they can navigate an agreement that will keep the employee engaged, valued and feeling respected without extra fiscal compensation.

So what can we do?

A conflict of needs framework is helpful to consider prior to an important discussion and will help plan for resolution. As a manager, it’s important to understand that you hold a position of power, and that from that vantage point, it is vital to show up to these reviews prepared and with an open mind.

Be ready to listen, what I call “clear listening” to pick up the nuances of what your team member is trying to tell you and to let them know that you are interested in their lived experience and their opinions and that you do care.

Building and nurturing open communication and respect is vital in team building and is especially important in a review situation, where performance and ability are being actively critiqued. 

For most businesses, attitude, time-commitment and project outcomes are key measures. Your role as a people leader is to connect with your direct report and to interpret and reflect back to them their value as a person first, and to then reflect and appreciate the value of their business contribution and their future potential.

As a manager you may be in a position to reward a team member in the way they desire – for example by a role reclassification or by a greater remuneration - but these things are not always possible.

Whether you can or cannot meet the employees remuneration expectations, this is the time where you have the opportunity to guide their career aspirations, to support their professional well-being and to strengthen your team and ultimately your business.

In your review preparations, be very clear on what you can offer them and what you can’t. If you can’t meet their expectations, tell them why not, and present them a timeline as to when it may be possible. Also consider other forms of reward that might meet their needs. For example more flexibility working from home, or later start times so they can help with school run or take an exercise class before work.

Can they take on extra duties to develop new skills? Can they be seconded to another area to round out their experience? Can you give them time to be creative or generative in a way that may not instantly bring returns to the organisation, but might allow the employee to celebrate their talents and potential for their own benefit? Can you offer them greater autonomy? Can you trust them to stand in at networking events or key meetings so they can raise their profile and level of experience? Invite your employees to broaden their thinking about the reward and recognition pathways that are available.

If we can move away from a pay increase or job title reclassification 'yes or no' reward situation and steer the conversation into a more creative, conversational and curious review process, we will absolutely move away from the conflict potential at performance review time. It is also an opportunity to learn more about the humans on our team, and what they need to perform at their best. And of course if you value your employee, it makes more fiscal sense to keep that team member rather than starting a recruitment process.

Closing out the process skilfully should involve thanking your employee for their contribution, and for their ongoing support of both you as their manager, and of the organisation itself. Seek to find common ground on any outlying issues and prepare a strategic plan to reach any unmet outcomes ahead of the following review period.

Expressing heartfelt confidence in the future, and your trust in them, will ensure that goodwill is firmly reinforced even in the context of not being able to meet their expectations.

If there is residual tension from unmet expectations, make sure you continue to check in with that employee to monitor their mood and performance, and to support their learning and professional development. If they are valued member of the team, make sure you continue to find ways to express your heartfelt appreciation, as it a key factor in employee retention.

If you’re nervous about the possibility of future conflict resulting from a poor review, make sure you let your own manager and/or human resource team aware and seek the required support and training in your own people management journey.

Best wishes to everyone who is heading into a performance review, let me know how it goes, and reach out if you’d like some individual or team coaching to help manage the process. You can make a appointment at a time that suits you via the book tab on this website.

All the best

Clair