Latest / The Nonprofit Podcast / Ep 144| 4 Top Tips for Nonprofit Performance Reviews

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Ep 144| 4 Top Tips for Nonprofit Performance Reviews · The Nonprofit Podcast

0:04
SPEAKER_01: The Nonprofit Podcast, powered by DonorBucks.
0:08
SPEAKER_01: As we wrap up another year, it's time to reflect, reset, and set the stage for success in the year ahead.
0:18
SPEAKER_01: But how do you ensure your team feels motivated and valued while also holding them accountable for their growth and impact?
0:26
SPEAKER_01: Welcome to the Nonprofit Podcast.
0:28
SPEAKER_01: I'm Jenna, Education and Community Engagement Manager here at Donorbox.
0:33
SPEAKER_01: We are here each week with practical actions you can use today to take your nonprofit to the next level tomorrow.
0:40
SPEAKER_01: Today we are diving into a topic that's on the minds of many nonprofit leaders as the year winds down: year-end staff reviews.
0:49
SPEAKER_01: If you're in a leadership or management role, you might be gearing up for these performance reviews with your direct reports.
0:57
SPEAKER_01: If you are feeling a bit nervous or uncertain about how to balance accountability with compassion, you are not alone.
1:04
SPEAKER_01: Performance reviews can be tricky to navigate.
1:07
SPEAKER_01: How do you make sure you're providing clear, actionable feedback while also keeping your team motivated and feeling valued?
1:15
SPEAKER_01: Well, lucky for us, I've got my co-host Britt here today.
1:19
SPEAKER_01: And she's led plenty of year-end reviews.
1:21
SPEAKER_01: She's been on both sides of it as well and has some great insights to share.
1:25
SPEAKER_01: Hey, Britt, I'm excited to hear your perspective on this.
1:28
SPEAKER_01: And I'm sure our listeners will find your experience really helpful as well as they prepare their own reviews.
1:33
SPEAKER_02: Hey, Jenna.
1:35
SPEAKER_02: Yeah, we all know this time of year, it always makes me think about just how much can be accomplished in a year and how important it is to reflect and realign with our teams, right?
1:46
SPEAKER_02: And I've had the chance to lead a fair number of year-in performance reviews.
1:51
SPEAKER_02: And let me tell you, I can say that each time it's a balancing act.
1:56
SPEAKER_02: It's not just about pointing out the wins and the areas for improvement.
2:01
SPEAKER_02: It's all about making sure that your team feels recognized, motivated, and just ready for the year ahead.
2:06
SPEAKER_01: I love that you brought up the word balance.
2:10
SPEAKER_01: I really feel like that's exactly what it is.
2:12
SPEAKER_01: Honestly, I think I've had pretty much every possible experience with year-end reviews.
2:18
SPEAKER_01: There were times where I didn't get a review at all.
2:21
SPEAKER_01: It was crickets, no feedback, no acknowledgement, just complete silence going into the new year.
2:26
SPEAKER_01: And honestly, that was always so disheartening.
2:30
SPEAKER_01: And especially when you're putting in the effort, you want to know what's working or what could be better.
2:35
SPEAKER_01: And just make sure that you are as valuable as possible.
2:38
SPEAKER_01: And then there's just nothing, right?
2:40
SPEAKER_01: And it left me feeling kind of stuck.
2:42
SPEAKER_01: Like I didn't know where I stood or how I was doing.
2:46
SPEAKER_02: Oh, I'm cringing.
2:48
SPEAKER_02: That's so rough.
2:49
SPEAKER_02: And I think about, I wonder, you know, I think we've all been there at some point.
2:54
SPEAKER_02: There's no feedback, you're left in the dark, and we're all just trying to figure out if we're doing things right.
3:01
SPEAKER_02: But then there's also the other side too.
3:03
SPEAKER_02: Jenna, I would love to hear your feedback where we're getting so much feedback thrown out at us, not enough context, and it feels harsh.
3:13
SPEAKER_02: It's overwhelming.
3:14
SPEAKER_02: And I think the key here is we need to create these open conversations where your team feels recognized, but also challenged to improve.
3:23
SPEAKER_01: Exactly.
3:24
SPEAKER_01: Like you've said already, that balance is so important.
3:28
SPEAKER_01: You want your team to feel like they're doing a good job, but also that there's room for growth.
3:33
SPEAKER_01: And that's what we're going to dive into today.
3:36
SPEAKER_01: How to make those year-end performance reviews productive and positive for everyone involved.
3:42
SPEAKER_01: So let's start by talking about why year-end performance reviews are so important.
3:48
SPEAKER_01: What do you think the real value is of these reviews, especially for nonprofit leaders?
3:55
SPEAKER_02: That's a great question.
3:57
SPEAKER_02: I think the biggest value, it's reflection.
4:01
SPEAKER_02: You know, it's easy, we get caught up in the day-to-day grind, but then the year-end review comes and it gives us a chance to step back and really take stock of everything that your team has accomplished.
4:13
SPEAKER_02: We don't want to just point out all of the areas for improvement.
4:17
SPEAKER_02: We want to recognize the hard work, the dedication that's gone into those achievements.
4:24
SPEAKER_02: And we all know this, right?
4:25
SPEAKER_02: Especially in the nonprofit world where everyone is stretched so darn thin, it's easy to overlook the small wins.
4:33
SPEAKER_02: But taking the time to celebrate those victories, it makes a huge difference and keeping morale up.
4:38
SPEAKER_02: And it's not just about the big goals, but it's about recognizing all the little steps that we're taking along the way.
4:46
SPEAKER_01: Exactly.
4:47
SPEAKER_01: And if you don't acknowledge the wins, your team might start to feel like they're working so hard, but not getting any recognition for it.
4:56
SPEAKER_01: And that can lead to burnout and frustration, which nobody wants, especially as we head into the new year.
5:02
SPEAKER_01: And we've had a lot of conversations about this, right?
5:04
SPEAKER_02: We talked about nonprofit burnout this season.
5:08
SPEAKER_02: Giving that recognition, it's so important because it shows your team that you see them, you value what they bring to the table.
5:16
SPEAKER_02: And it's more than just a good job, it's about being so specific and letting them know exactly what they're doing well.
5:24
SPEAKER_01: Yes.
5:24
SPEAKER_01: Okay, so let's dive into the trickier part of performance reviews, balancing accountability with compassion.
5:33
SPEAKER_01: I think this is something a lot of managers struggle with.
5:36
SPEAKER_01: So, and in your experience, how do you give feedback that holds people accountable while also showing that you care about their growth?
5:45
SPEAKER_02: It's definitely a challenge.
5:47
SPEAKER_02: And I will tell you, I've learned over the years, I think the best way to balance this, it's to approach feedback with empathy.
5:56
SPEAKER_02: You know, if someone's missed a goal or they didn't meet expectations, instead of just saying, well, you didn't hit that target, I like to ask, what challenges did you face?
6:08
SPEAKER_02: What can we do differently next year?
6:10
SPEAKER_02: And that way, you know, as a leader, you're showing them that you're invested in their success and you really want to see them thrive and you're willing to do anything to work with them to improve.
6:22
SPEAKER_02: I've always tried to make feedback a genuine, authentic conversations.
6:27
SPEAKER_02: Because at the end of the day, it's not about me, Jenna, just telling them what they did wrong.
6:31
SPEAKER_02: It's really about creating that dialogue where we can talk about how things went, what changes can be made moving forward.
6:38
SPEAKER_02: And really, it's just all about letting them be part of a collaborative solution.
6:43
SPEAKER_02: And giving someone the chance to explain what happened and collaborate on next steps, it makes the feedback more feel like a collaborative partnership, giving them ownership over their growth, autonomy, which I think is so important, making it feel less like a critique and more like a mutual learning opportunity.
7:02
SPEAKER_01: I really appreciate this approach.
7:05
SPEAKER_01: I've definitely been on the receiving end of feedback that felt a little too cold when it's just about numbers or tasks.
7:13
SPEAKER_01: It can feel like you're not being seen as a person, just a performer.
7:17
SPEAKER_01: And of course, those numbers and tasks and KPIs are important.
7:22
SPEAKER_01: But I always appreciate when leadership approaches it like we're in this together.
7:26
SPEAKER_01: Let's figure out how we can improve together moving forward, right?
7:30
SPEAKER_01: Right.
7:30
SPEAKER_01: And I totally get that feedback.
7:32
SPEAKER_02: It should be a two-way conversation.
7:36
SPEAKER_02: No one likes a lecture.
7:37
SPEAKER_02: And the goal here is to make sure that your team leave that conversation feeling empowered.
7:43
SPEAKER_02: That you don't want them leaving feeling discouraged.
7:46
SPEAKER_02: And they need to know that they're capable of growth, they have the potential.
7:51
SPEAKER_02: And most of all, that you're there to support them every step of the way.
7:57
SPEAKER_01: You know, and speaking of leadership, there's been a really kind of wild and alarming story making the rounds that ties into exactly what we're talking about: trust and the way leadership communicates with the team.
8:11
SPEAKER_01: And this story right now is blowing up across social media.
8:15
SPEAKER_01: It's um it's really interesting.
8:17
SPEAKER_02: Ooh, Jenna, I think I saw a little bit on LinkedIn, but please do tell what the heck is going on.
8:23
SPEAKER_01: Okay, so a home salon services company, they decided to send out a confidential survey to employees asking about their stress levels.
8:33
SPEAKER_01: So on the surface, this seems like a good idea, right?
8:36
SPEAKER_01: I'm thinking, oh, how thoughtful.
8:38
SPEAKER_01: It's for sure important to check on your team's mental health, especially this time of year.
8:43
SPEAKER_01: But then get this.
8:44
SPEAKER_01: They told the employees who reported high levels of stress that they were going to be fired.
8:50
SPEAKER_01: Yeah, fired.
8:52
SPEAKER_01: So imagine how that would feel to receive that kind of news.
8:55
SPEAKER_01: I mean, thinking that this is anonymous and just taking advantage of the trust that they're putting in you.
9:02
SPEAKER_02: I am shaking my head here.
9:03
SPEAKER_02: That's just, I have no words.
9:06
SPEAKER_02: I would just, oh my, wow.
9:08
SPEAKER_02: I mean, that is a massive failure in communication and leadership.
9:13
SPEAKER_01: Yes, exactly.
9:14
SPEAKER_01: And then get this, they tried to backtrack and claim it was a stunt to raise awareness about how to approach stress in the workplace.
9:24
SPEAKER_01: Anyway, I think this situation shows how important it is to approach leadership decisions and feedback with so much empathy.
9:31
SPEAKER_01: You cannot use something as serious as mental health for a PR stunt.
9:35
SPEAKER_02: Oh, 100%.
9:36
SPEAKER_02: And I think that's such a powerful example of how not to handle leadership and communication.
9:43
SPEAKER_02: So much cringe factor.
9:44
SPEAKER_02: It's so important.
9:45
SPEAKER_02: We want to keep that human element at the forefront of things when it comes to stress, mental health, and job performance and feedback.
9:53
SPEAKER_02: And if leaders and managers or whoever completely forget that, they risk losing the trust of their team completely, even the company's reputation.
10:04
SPEAKER_02: Mm-hmm.
10:04
SPEAKER_01: Yeah.
10:05
SPEAKER_01: And speaking of feedback, I think we can both agree that having a solid framework in place for performance reviews is really key.
10:13
SPEAKER_01: It helps you stay on track and helps it be as productive as possible.
10:17
SPEAKER_01: So let's talk about that.
10:19
SPEAKER_01: How do you prepare for year-end performance reviews?
10:23
SPEAKER_01: And what is your process or what has been your process to make sure that they are productive and positive?
10:29
SPEAKER_02: Sure.
10:30
SPEAKER_02: So one thing I've always done in my previous executive director roles is ask my team members first to do a self-assessment.
10:37
SPEAKER_02: And I think that's so important to give the opportunity.
10:40
SPEAKER_02: We talked about ownership autonomy for your employees to reflect on their own work and how do they see their own progress?
10:49
SPEAKER_02: And I think this sets the stage for the conversation going forward.
10:52
SPEAKER_02: And it helps them to feel like they're in the driver's seat of their own growth.
10:57
SPEAKER_01: Yes, that is a great idea.
10:59
SPEAKER_01: So, what do you think should actually be in a self-assessment?
11:04
SPEAKER_01: I imagine it's more than just like checking boxes.
11:07
SPEAKER_02: For sure, Jenna.
11:08
SPEAKER_02: A self-assessment, it should be more than a simple checklist.
11:11
SPEAKER_02: I'd usually ask my team members to start on a few key areas.
11:16
SPEAKER_02: First, I'd say identify what are your biggest accomplishments?
11:21
SPEAKER_02: What are you most proud of?
11:23
SPEAKER_02: What do you think that you achieved in this past year that you feel really good about?
11:29
SPEAKER_02: Start with celebrating those wins.
11:31
SPEAKER_02: And next, I would ask them, your employees, to reflect on their challenges.
11:37
SPEAKER_02: What were the types of roadblocks, the barriers that really held them back throughout the year?
11:42
SPEAKER_02: Be honest about that.
11:44
SPEAKER_02: Were there any goals that they just didn't meet?
11:47
SPEAKER_02: And instead of just pointing out what completely went wrong, I encourage them to dive into the why.
11:53
SPEAKER_02: We talk so much about the why, but think about why things didn't go as planned.
11:58
SPEAKER_02: Name those things and also take it a little bit further.
12:01
SPEAKER_02: What might they do differently next time?
12:04
SPEAKER_02: And finally, Jenna, I always have my employees in the past think about where do they want to go next.
12:11
SPEAKER_02: We're talking about the future and looking forward.
12:14
SPEAKER_02: This comes to thinking about their skills and growth.
12:18
SPEAKER_02: What skills did they develop this year?
12:20
SPEAKER_02: Did they try anything new or take on extra responsibilities?
12:24
SPEAKER_02: And most importantly, I ask them, where do you see opportunities for growth?
12:30
SPEAKER_02: Where do you want to improve in the year ahead?
12:33
SPEAKER_02: And how can I be of support to them in getting there?
12:36
SPEAKER_01: This is great information.
12:38
SPEAKER_01: And I think that sounds like a really great way to start.
12:42
SPEAKER_01: And it's just nice to do that reflection when you get to set aside time on your calendar to reflect as a team member, as a staff member before going into what can be kind of a nerve-wracking meeting sometimes.
12:55
SPEAKER_01: Okay, so after that, what's the next step?
12:58
SPEAKER_01: Would you say?
12:59
SPEAKER_02: This is all about goal setting and setting expectations.
13:03
SPEAKER_02: I like to use SMART goals.
13:05
SPEAKER_02: We've talked about them before.
13:06
SPEAKER_02: Here's a reminder: specific, measurable, achievable, relevant, and time-bound because it makes things clearer.
13:15
SPEAKER_02: I ask them what do they want to achieve next year and how we can make it happen together.
13:20
SPEAKER_02: This is all about where we talk about the support they need from me and the rest of the team to succeed in the year ahead.
13:29
SPEAKER_01: I think having that structure really helps keep the conversation productive and focused on what's ahead.
13:36
SPEAKER_01: And I love using the SMART Goals model.
13:38
SPEAKER_01: I think it's very effective.
13:40
SPEAKER_01: Let's not forget about the follow-through after the review, right?
13:44
SPEAKER_01: What's next?
13:44
SPEAKER_02: It's easy for feedback to just be words if it's not backed up with action.
13:49
SPEAKER_02: You want to make sure you check in regularly, quarterly, at the very least, because you want to track progress and make adjustments and fine-tune where where is needed.
13:59
SPEAKER_02: That helps to keep the conversation alive and it reinforces accountability while showing that you're invested in their success.
14:06
SPEAKER_02: The journey never ends.
14:09
SPEAKER_01: The journey never ends.
14:10
SPEAKER_01: That's so true.
14:12
SPEAKER_01: Okay, so now that we've covered the framework for year-end reviews, I want to dive into some practical tips for folks who will be doing these performance reviews.
14:22
SPEAKER_01: There are definitely a few common pitfalls that I've experienced, uh, like not being prepared to have this meeting or being too critical or even sugarcoating things.
14:31
SPEAKER_01: So, what do you think are the biggest mistakes that managers or leaders can make during performance reviews?
14:38
SPEAKER_02: Sure.
14:38
SPEAKER_02: One mistake I see often is not aligning the review with the bigger purpose or the mission of the organization.
14:47
SPEAKER_02: You really need to make it known your team needs to understand how their work contributes to your overall impact.
14:55
SPEAKER_02: And if that connection isn't clear, even their best efforts, it will feel like they're not making a difference because that clarity doesn't exist.
15:04
SPEAKER_02: So make sure you take the time to show them how they, as individuals, how their work, it's contributing.
15:11
SPEAKER_02: It's all part of that bigger picture, your mission.
15:15
SPEAKER_02: And this doesn't just reinforce their value, but it helps them feel more connected to the work you're doing.
15:21
SPEAKER_02: During your review, tie in those individual goals to the organization's mission.
15:26
SPEAKER_02: For example, if someone has been working on donor engagement, explain how their efforts have directly supported the organization's growth and made a tangible impact because this is going to help your team see that their work has meaning beyond the day-to-day task, that they're part of something truly bigger.
15:44
SPEAKER_01: That is such an important point.
15:45
SPEAKER_01: When staff don't see how their work ties into the overall mission, it can lead to so much disengagement.
15:53
SPEAKER_01: So, okay, what's another common mistake?
15:56
SPEAKER_01: Oh, yes.
15:56
SPEAKER_02: Another mistake I've seen happen so many times.
16:00
SPEAKER_02: It's focusing too much on areas for improvement and not enough on what's going well.
16:08
SPEAKER_02: As humans, we all know this.
16:10
SPEAKER_02: It's easy to jump straight into what needs fixing.
16:13
SPEAKER_02: We're fixers, but it's just as important to recognize all of those small things that your team is doing right, even if they're small wins.
16:22
SPEAKER_02: Don't forget to recognize those achievements because it helps build morale.
16:27
SPEAKER_02: It reinforces positive behavior.
16:30
SPEAKER_02: Acknowledging successes early on in the review.
16:32
SPEAKER_02: That is another part of this.
16:34
SPEAKER_02: Start with what's working well and give specific praise for things that your team has excelled at.
16:39
SPEAKER_02: This makes it easier for them to absorb constructive feedback much later.
16:43
SPEAKER_02: Don't forget to start with all of the positive successes right from the get-go.
16:48
SPEAKER_02: It's all about balancing the positive and also the areas for improvement.
16:52
SPEAKER_01: I totally agree.
16:54
SPEAKER_01: Now, on the flip, I'm going to play devil's advocate here a little bit.
16:58
SPEAKER_01: I think another pitfall is being too soft on feedback just to avoid confrontation.
17:04
SPEAKER_01: And I will admit, I've done this before, right?
17:06
SPEAKER_01: I don't like to hurt people's feelings or make them feel bad.
17:09
SPEAKER_01: Um, and while it's so important to be compassionate, not giving clear feedback can leave people feeling confused about expectations too.
17:17
SPEAKER_01: So what do you think about that?
17:19
SPEAKER_02: Oh, I completely hear you on this.
17:21
SPEAKER_02: And I hate to stereotype about most nonprofit professionals, but we're genuinely kind, compassionate people.
17:28
SPEAKER_02: And that can get in the way of giving constructive feedback.
17:31
SPEAKER_02: I think about this.
17:32
SPEAKER_02: It's like trying to protect someone's feelings by not being honest.
17:36
SPEAKER_02: But in the long run, what do we all know?
17:38
SPEAKER_02: It ends up doing more harm than good.
17:41
SPEAKER_02: When someone tells me that they're fine, but they're clearly not, it can make things so awkward because you know there absolutely is something wrong.
17:50
SPEAKER_02: If we dance around the real issue, sure, we might avoid confrontation in the short term, but we also leave them in the dark about how to improve or what they can do differently.
18:01
SPEAKER_02: And eventually that leads to much larger issues that could have just been addressed in the first place.
18:08
SPEAKER_02: So when you provide constructive feedback, one thing I'd like to recommend is using what's called the SBI model: situation, behavior, impact.
18:19
SPEAKER_02: For example, in the last campaign, which is your situation, your outreach emails were late, behavior, and that impacted our ability to meet our fundraising goals, impact.
18:30
SPEAKER_02: So remember, situation, behavior, impact.
18:34
SPEAKER_02: Then what you're gonna want to do is shift to solution-oriented feedback.
18:37
SPEAKER_02: Now, how can we improve the timing of your emails in the future?
18:41
SPEAKER_02: This approach, it's gonna keep the conversation focused on growth and not just what went wrong.
18:47
SPEAKER_01: I really appreciate that breakdown.
18:50
SPEAKER_01: I think that is such a great way to ensure feedback is constructive and actionable.
18:54
SPEAKER_01: And you and I love formulas here.
18:56
SPEAKER_01: We have a formula for everything, so this is easy to remember.
19:00
SPEAKER_01: SBI.
19:01
SPEAKER_01: And this just helps your team understand exactly what happened, but more importantly, how to move forward.
19:07
SPEAKER_01: So anything else you'd suggest, Britt?
19:10
SPEAKER_02: So one final tip I would say, and we mentioned this multiple times already, this really is about open dialogue.
19:17
SPEAKER_02: Performance reviews shouldn't just be a one-way conversation.
19:21
SPEAKER_02: This is where you're gonna want to ask your team members for their feedback.
19:24
SPEAKER_02: Ask them how they feel about their role, what challenges are they facing, and most of all, what support do they need from you?
19:31
SPEAKER_02: This is all about making the review feel more like a partnership, and it's gonna give you valuable insights into how you can better support your team moving forward into the new year.
19:40
SPEAKER_02: Ask open-ended questions like, what's something I can do to support your growth next year?
19:46
SPEAKER_02: Or is there anything you think we can improve together as a team?
19:50
SPEAKER_02: Asking these types of questions help with team development and it will most of all build trust and it's gonna strengthen your relationship.
19:57
SPEAKER_01: We've covered a lot of ground today, I think, from making sure your team's efforts align with the bigger mission to balancing feedback with recognition and really making the year-end performance review process something that feels motivating and constructive.
20:14
SPEAKER_01: And I think the key takeaway here is that these reviews don't just have to be a checkbox activity.
20:21
SPEAKER_01: Actually, they should not be a checkbox activity.
20:23
SPEAKER_01: They can be a real opportunity to connect with your team and set everyone up for success moving into the new year.
20:30
SPEAKER_01: So, just to recap, you want to focus on making sure everyone understands how their work fits into the bigger picture of your mission, celebrating those wins, no matter how small, alongside those areas for growth, provide clear, actionable feedback with empathy and compassion.
20:48
SPEAKER_01: And most importantly, create a space for that two-way conversation.
20:53
SPEAKER_02: Absolutely.
20:54
SPEAKER_02: Now it's a great time for you to take a moment to think about your own review processes.
21:00
SPEAKER_02: How are you approaching your year-in reviews this year?
21:03
SPEAKER_02: And how can you make them even more meaningful for your team?
21:07
SPEAKER_02: So schedule some intentional time on your calendar to reflect.
21:10
SPEAKER_02: We talked about reflection on how you're doing things this year and where you might be able to make a small shift that'll have a bigger impact.
21:18
SPEAKER_02: And it doesn't have to be a huge overhaul, right?
21:21
SPEAKER_02: It can be something simple like adding in more specific praise or being more clear about expectations.
21:28
SPEAKER_01: Speaking of setting intentional time for planning, we've also got a helpful resource for you.
21:34
SPEAKER_01: And we've linked a donor box blog article in the show notes called 20 KPIs for nonprofits to track over time.
21:40
SPEAKER_01: And it has a whole section on human resources for nonprofit performance metrics that dives deeper into how you can track staff performance and make sure that you are setting up your team for success.
21:52
SPEAKER_01: Britt, thank you so much for sharing your insights with us today, as always.
21:56
SPEAKER_02: Always a pleasure, Jenna.
21:58
SPEAKER_01: And thank you for joining us on the Nonprofit Podcast.
22:02
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22:35
SPEAKER_00: Our tools empower you to help others.
22:38
SPEAKER_00: This is our mission.
22:39
SPEAKER_00: This is Donorbox.
22:41
SPEAKER_00: Helping you help others.