An annual performance review allows you to take a break from your business and evaluate the contribution of your team members, says Sara Gilbert, founder of Strategist, a consulting firm for financial advisors in Montreal.

“As an advisor, part of your role is wearing a [human-resources] hat,” Gilbert says, “and managing and motivating your team.”

Evaluating your team members is a way of helping them to progress, which will inevitably help your business succeed.

Gilbert shares four steps to a successful performance evaluation:

1. Refer to job descriptions
Evaluate each person based on the skills and tasks listed in the job description used to hire that person. You can assess fairly the work someone does only if that person knows and understands his or her role.

You are not criticizing your team member, but identifying and explaining what needs improvement. Be specific in the changes you would like to see and how they would affect the practice in a positive way.

For example, you might have a team member whose computer skills leave room for improvement. You might say: “I would like you to be more comfortable using Microsoft PowerPoint. If you could help me develop presentations, I would have more time to call clients.”

2. Discuss goals
While you may think the place to start is with your team member’s goal, Gilbert says, that is not the case. The team member’s goals come later.

“You want to share the business goals first,” Gilbert says, “and see how the team member’s contribution is affecting those goals.”

For example, if you want to add 15 new client relationships to your practice by the end of the year, say so. And explain what your team member’s role is.

You might ask him or her to be more proactive in organizing events that will appeal to prospects.

It is then up to the team member to take that information and determine how he or she can help you grow your business, and when this goal realistically can be met.

“A part of motivation is people feeling empowered,” Gilbert says. “It’s knowing they have a say on their own future.”

This is also a good time to discuss your team member’s long-term goals. Where does your staffer see himself or herself in a few years? How can you help that person reach that goal?

3. Provide resources
It is not enough to “say what is good, what is bad and ‘see you next year’,” Gilbert says.

Being a leader means helping your team grow and providing tangible assistance in making that growth possible.

If your team member has decided to pursue a college certificate in marketing, with the specific purpose of helping you grow your business, you may offer to pay his or her tuition fees.

4. Document the conversation
Your firm may provide a template for performance evaluation. If not, you should create your own. Either way, putting the details of the conversation and its outcome in writing is necessary.

This part of the process will provide you and your team member with a clear record of the topics you discussed and how you both will proceed. This document will also act as a reminder for next year’s review.

This is the first instalment in a two-part series on performance evaluation.

Next: Letting your team evaluate you.