How to carry out an employee performance review in retail - quickly and easily
As a retail business, your ability to coach and guide your team plays a vital role in the success of your store.
Conducting regular, in-the-moment employee performance reviews in retail is an integral part of effective business management.
These reviews offer valuable insights into individual performance, strengths, and areas for improvement, ultimately leading to better team performance and overall store success. And who doesn’t want that?
So what exactly are in-the-moment employee performance reviews?
Unlike traditional performance reviews, which are done quarterly or annually and look at an employee’s performance over the course of the months. In-the-moment employee performance reviews can be done right on the shop floor.
These are much more effective in driving change and engaging employees, making them feel happier, more valued and supported.
Are they really that important?
Don’t just take our word for it; in a survey by EmploySure, they found that a whopping 80% of employees prefer immediate feedback rather than waiting for annual performance management reviews.
And Linkedin found that 80% of Gen Y employees would prefer to be recognised on the spot than in formal reviews.
Why is that?
Because, as humans, we remember our most recent experience the best. This means that feedback is most valuable when it occurs immediately after an action.
Think of it like this.
Why would you want to work all year, clueless about how you’re performing, making the same mistakes over and over again, when you could correct them immediately if your manager gave you performance feedback on a regular basis?
So how do you carry out an employee performance review in retail and what are the steps you need to follow for ultimate success? Read on to find out.
Develop a retail employee performance review framework
You can’t just blindly go into your retail store and carry out an employee performance review.
You’ve got to have a predefined framework which supports the behaviours you want to encourage.
So, we bet you’re wondering how exactly do you develop an employee performance review framework for retail. Here’s how:
Identify your key performance indicators (KPIs) - think about what great performance looks like for an employee and how it relates to business success. Do you want to wow your customers beyond belief, then you’d want to keep track of customer ratings and reviews. Or perhaps you want your sales number to go through the roof. Then you’d want to keep track of sales figures. Whatever you decide in this stage is important because it’s how you will measure the success of your employee performance reviews.
Create your questions - these will be what you’ll use to assess your frontline team's performance in relation to your key performance indicator. Let’s say you wanted to provide an unbeatable customer experience. Then your employee performance review questions may look a little something like this:
Did the retail employee greet the customer by name?
Did they smile?
Did they make small talk to get to know the customer?
What was their overall attitude like?
Did they ensure the customer could find what they were looking for?
Did they put the customer’s item behind the till for them?
Did they offer the customer an alternative if the customer’s desired product was out of stock?
Did the retail employee say goodbye to the customer?
3. Decide how you want to collect your answers. Some may be a numerical rating such as 1 to 10, whilst others may be yes or no, and some may be text or photo-based.
Alternatively, some questions can not be answered with any of those because they are more of a feeling.
For example, Ocasta Review offers users a sliding vibe scale. This is where it’s colour coded from red all the way up to green so you can slide the marker to a level that feels right to you. Our clients like to use it for questions such as ‘what is the general attitude of the employee’ or ‘How happy does the employee seem.’ Because sometimes you can’t put your feelings into words.
Develop an action plan to show to your retail employees after you’ve carried out their review
Your employee performance review should always serve as a strategic coaching tool for your team.
Don’t just collect the insights and then throw them in the drawer or tell them that they need to improve without being clear on exactly what steps they need to take.
Use the review insights to guide your retail staff on what they need to change to improve their performance in-store.
After every performance review, make sure you turn it into an action plan which your retail staff can easily understand and refer back to.
If you haven’t got time to do this regularly, we’d recommend using a digital employee performance review tool such as Ocasta Review.
The retail employee performance review app automatically generates a scored, colour-coded report which makes it easy to see the employee’s strengths and weaknesses. And best of all, you can set tasks in the moment to ensure employees don’t forget what they need to do to improve for next time.
Follow these tips when sharing the employee performance review results with your retail team member
1. Be clear and concise when explaining performance expectations
When employees are not provided with clear and measurable performance expectations, it becomes difficult for them to understand what is expected of them. Follow the results on your report so the employee has something to refer back to and clearly explain why you gave them the score that you did.
2. Don’t overemphasise recent events
The "recency effect" can lead managers to focus too much on recent performance, overshadowing an employee's overall performance.
When you give feedback on an employee’s performance from that moment in time, always let them know that you have seen how they have been performing over the months so they don’t assume the reviews are an unfair representation of their overall performance e.g. you didn’t have a great attitude today but I’ve noticed you’ve been upbeat all month so try to keep that positivity up and let me know if something is bothering you.
3. Avoid rating inflation or deflation to keep retail employees happy
Some managers may inflate or deflate ratings to avoid confrontation or to differentiate employees artificially rather than based on their true performance. To avoid this, be honest with your reviews but always deliver your feedback in the following format; something positive first, followed by the weakness. E.g. I noticed how friendly you were with the customer which is really great so keep that up. However, it was evident that you weren’t doing much to close the sale so we need to work on this.
4. Involve the employee in their feedback meeting
If employees are not allowed to provide self-assessment or offer feedback during the review process, it can lead to disengagement and dissatisfaction. To overcome this, don’t just tell them what you thought of their performance; ask them what they thought and ask their opinion on certain insights which you collected about their behaviour.
5. Always link performance to development opportunities
Performance reviews shouldn’t just focus on the benefit for the business; they should also guide employees, showing them how they can develop their careers within your business. This follows the mantra of ‘what’s in it for them’, which is likely to make them feel more engaged and driven to improve.
6. Always use a happy, positive and upbeat tone
If the performance review is conducted in a punitive or threatening manner, it can create a negative and demotivating experience for the employee.
Always be encouraging and friendly when you deliver the feedback to your retail employees.
Give your retail teams the tools they need to level up their skills and performance
Employee performance reviews are essentially pointless if you’re not giving your teams everything they need to level up their performance.
They’re working hard to serve your customers and retain hoards of product and business information, so ensure you’re supporting them with what they need to improve.
To embed knowledge, we recommend microlearning.
Microlearning is a perfect fit for busy retail teams due to its efficiency and flexibility. Its short, bite-sized modules can be accessed on-the-go, allowing employees to acquire specific skills quickly without disrupting their daily tasks.
Microlearning enhances knowledge retention and provides just-in-time learning, ensuring employees have the information they need when they need it. With engaging and interactive content, it offers real-time performance support and is cost-effective compared to traditional training methods.
To keep knowledge topped up, we’d recommend a digital knowledgebase which gives your frontline teams up-to-date, searchable access to your latest offers, product info, activities, procedures, how-tos, ops manuals and videos. Always within reach so they can learn in-the-moment.
Decide on the frequency of your employee performance reviews
One of the main reasons that performance reviews fail to drive change is that they are not done frequently enough.
Just like most things in life, you need to develop a consistent routine in order to start seeing noticeable results, if you don’t you’ll struggle to drive any real, meaningful change.
So how many employee performance reviews should you be doing?
Well, the most important thing is to set a realistic goal that you can stick to. Otherwise, you end up getting stressed and burnt out and you don’t perform any performance reviews at all.
We’d recommend reviewing an employee’s performance at least once per month, but if that sounds like too much, start with one every two months and work your way up to it.
The more employee performance reviews you do, the quicker you will become.
Why is it so important to do your retail employee performance reviews regularly?
Providing regular feedback to your employees isn’t just a nice thing to do, it’s essential to drive a team of engaged, motivated and successful employees. Take a look at the stats below if you don’t believe us.
According to a survey by Gallup, employees who have regular, meaningful conversations with their managers are almost three times more likely to be engaged at work.
A study by PwC found that 60% of employees surveyed reported that they would like feedback on a daily or weekly basis.
In a research study by Leadership IQ, 95% of employees agreed that receiving regular feedback is essential for improving their job performance.
A report by the Society for Human Resource Management (SHRM) showed that organisations with continuous performance management practices had 71% higher employee engagement compared to those with traditional annual performance reviews.
A Harvard Business Review study revealed that frequent feedback and coaching improve employee performance by 39%.
Decide how you will reward and recognise your employees to keep them on track with their development
Employee reward and recognition has a profound impact on employee performance, and it all starts with the brain. Here's how it works:
Activation of reward pathways
When an employee receives recognition or a reward for their efforts, it triggers the brain's reward pathways. The brain releases dopamine, a neurotransmitter associated with pleasure and positive reinforcement. This activation creates a sense of fulfilment and reinforces the behaviour that led to the recognition.
Motivation and goal-directed behaviour
Dopamine release in the brain plays a crucial role in motivation.
When employees experience positive reinforcement through recognition or rewards, they become more motivated to repeat the behaviour that earned them the recognition. This reinforcement strengthens the neural pathways associated with that behaviour, making it more likely for the employee to engage in similar actions in the future.
Increased focus and productivity
Positive recognition and rewards help employees feel valued and appreciated. This sense of value enhances their self-esteem and confidence, leading to increased focus and productivity in their work. Employees are more likely to go the extra mile and invest additional effort when they know their contributions are recognized and respected.
Strengthening of neural connections
Regular recognition and rewards can lead to long-term changes in the brain. Positive experiences trigger the strengthening of neural connections associated with the rewarded behaviours. This process, known as neuroplasticity, makes it easier for retail employees to perform well consistently and excel in their roles.
Reduction of stress and anxiety
Employee recognition triggers the release of endorphins, which are neurotransmitters that reduce stress and anxiety. A less stressed workforce is more likely to be engaged, creative, and focused, leading to improved performance.
Sense of belonging and loyalty
When employees receive recognition for their efforts, they develop a stronger sense of belonging within the organisation. This sense of belonging fosters employee loyalty and commitment to the company's goals, leading to higher levels of engagement and improved performance.
Social bonding and trust
Recognition and rewards often involve positive social interactions between employees and managers or peers. These interactions activate the brain's social bonding and trust-related neural pathways, promoting a positive work environment and enhancing teamwork.
Positive reinforcement loop
As employees experience the positive effects of recognition and rewards, they are more likely to seek out opportunities to contribute further to the organisation's success. This creates a positive reinforcement loop, where improved performance leads to more recognition, further motivating employees to excel.
So there you have it, that’s exactly why you MUST incorporate reward and recognition into your employee performance review process.
How can you include reward and recognition?
Our clients use Ocasta Engage, which allows them to send digital stickers and trophies as well as monetary rewards for those bigger achievements.
These are so quick and easy to send that Virgin Media saw a staggering 3.75x uplift in the amount of reward and recognition being handed out. From 800 to a staggering 3,000!
Alternatively, if you haven’t got a dedicated reward and recognition platform, try the actionable tips mentioned below:
Send personalised thank-you notes - Take a few minutes to write personalised thank-you notes to employees who have recently gone above and beyond. Handwritten or digital, a heartfelt message can make a significant impact.
Implement a peer recognition program - Set up a peer recognition system where employees can nominate and appreciate each other's efforts. This encourages a supportive and positive team dynamic.
Hold a quick recognition meeting - Gather your team for a brief meeting and publicly acknowledge specific accomplishments or milestones achieved. Celebrate their successes and express your gratitude.
Create a recognition wall or board - Designate a physical or digital space where employees can share their accomplishments or recognise their peers. This serves as a constant reminder of achievements and fosters a sense of community.
Provide on-the-spot rewards - Surprise employees with small on-the-spot rewards like gift cards, snacks, or tokens of appreciation for exceptional efforts during the day.
Schedule weekly "Wins of the Week" email - Send out a weekly company-wide email highlighting individual or team wins and achievements. This reinforces a culture of recognition and shared success.
Launch a "Rookie of the Month" program - Recognise and celebrate new employees who have shown exceptional enthusiasm, dedication, and growth during their early days at the company.
Start a "Recognition Jar" - Place a jar in a common area and encourage employees to write notes of appreciation for their colleagues. At the end of the month, read these notes aloud during a team meeting.
Host an "Employee of the Month" award - Recognise outstanding employees with an "Employee of the Month" award. Include a certificate, a small gift, or a reserved parking spot as part of the recognition.
Solicit employee feedback - Ask employees for input on the types of rewards and recognition they find most meaningful. Use this feedback to tailor your recognition program to their preferences.
To Summarise
There you have it, the ultimate guide to dominating those employee performance reviews!
Get out there and lead your team to retail success.
Set clear expectations, nail that review system, provide feedback regularly, and arm your customer-facing teams with the tools they need for review success.
If you follow these steps, you'll create a retail team that'll crush the competition and conquer new heights! So, gear up and get ready to rock those reviews here’s a quick checklist for you to recap;
Be consistent - Regular performance reviews keep your team sharp and focused on victory.
Be positive - Kick things off with a bang by praising their triumphs and acknowledging their invaluable contributions. Let them know you're their biggest cheerleader, rooting for their success!
Set S.M.A.R.T. goals - Craft specific, measurable, achievable, relevant, and time-bound goals.
Deliver constructive feedback - Use real examples to illustrate their performance highs and lows. It's all about helping your team grow and conquer new challenges.
Tackle the tough stuff - Use the performance review as the ultimate battle strategy session. If someone's struggling, tackle it head-on!
Empower them with knowledge - Give your retail teams the tools to crush it! Identify top-notch training tools to level up their skills. Think digital knowledgebases and microlearning.
Celebrate the victories - Recognise and reward your team's achievements.
Are you a retailer that’s not making the most of their employee performance reviews?
Carrying out irregular employee performance reviews without utilising a solid framework, a scoring system and data is like sailing the open sea without navigation tools.
A digital employee observation app provides the compass, maps, and weather reports that guide your employee reviews, ensuring they are always directly aligned with your business goals. They help you chart a course towards success and steer clear of potential pitfalls.
Not to mention that they dramatically speed up the process to ensure your managers feel calm and in control of their team’s performance rather than stressed, overworked and miserable.
Sound like something your business needs?
Book a 25-minute demo now and see how Ocasta Review can work in your retail business.
