Annual performance reviews give managers and employees an opportunity to look at the employee’s performance over the course of a year. Short- and long-range goals from the prior year are evaluated. Raises and promotions generally are discussed.
As with other job functions, many small-business owners conduct reviews of their sales staff annually. However, in my experience, reviewing a salesperson’s performance on an annual basis doesn’t work. Problems with accounts are identified too late or not at all. Deals that should have been sealed wind up going to the competition. Low productivity often goes unnoticed.
The result can be that non-performers remain with the company, and on the payroll, for too long. They come in below quota month after month and cost the company time and money.
To avoid this, consider meeting with your salespeople on a monthly basis and conducting formal reviews quarterly. Just because the review process will be different for sales, that doesn’t mean it will be unfair for other types of employees. In fact, changing the frequency of salesperson reviews can benefit your entire organization. For starters, you’ll notice that after those monthly meetings, there’s a burst of high energy that can result in high volume sales activity. Your salespeople will be motivated to fill their pipeline and reach or exceed quota benchmarks.