The DANTON HR Guide to the Performance Development Review (PDR)
Performance Development Reviews
can play an important role in an organisation’s people strategy and support their approach to hiring, motivating, and promoting employees.
A PDR, also known as a performance development review or personal development review forms part of the performance management process.
Locates of the Performance and Development Review (PDR), and most of the organisations we work with have PDR processes in place and most people expect organisations to offer PDR as part of their processes. But not everyone has heard of them or fully understands how they can benefit businesses, retain talent and support the career development of People. There are also different approaches to take when structuring a PDR and a variety of goal management tools to choose from.
We talk you through the personal development review and the different goal management tools available to help you develop and retain your people to benefit your organisation.
What Is a PDR?
A PDR or performance development review provides a documented snapshot of how well an individual is performing their role across a certain time frame e.g. month by month or throughout a year. A PDR supports both the individual in achieving their career aspirations and the organisation in achieving goals and objectives. Many businesses use the PDR to help employees set SMART objectives and use their PDR review sessions to discuss what they need to put in place to achieve them.
Why is a PDR Important?
Performance Development Reviews can play an important role in an organisation’s people strategy and support their approach to hiring, motivating, and promoting employees. They can also be used when discussing pay reviews or to identify when performance management may be needed.
When PDRs are done well, they can support individual career development and help to develop an organisation.
What Makes a Great PDR?
A good PDR provides a confidential platform for people to speak with their line managers on a regular basis. We recommend managers and their team members meet regularly to discuss and review performance and development, with informal meetings taking place monthly and more in depth PDRs on a quarterly basis. They can discuss where they are excelling or if there are any areas of their role they’re struggling with and how to get support if it is needed.
Who Benefits from a PDR?
PDR’s benefit the employee and management because they are designed to support communication and help set realistic expectations.
What is Discussed During a PDR?
During a PDR you can expect to discuss:
Corporate goals and how to align personal objectives to these.
Opportunities for career development or progression.
When an employee might be entitled to a pay related bonus, promotion, or to discuss redundancy.
How well an employee is performing.
What To Expect In a PDR?
In a PDR, a manager and an employee would typically meet in a 1:1 setting either in person or via video conferencing. They would then go through a list of agreed questions and discuss their responses, review achievements and discuss next steps and goals for the time between this meeting and the next meeting.
Can PDR’s Help Increase Performance?
PDR’s provide an opportunity for managers and employees to discuss anything outside the normal day-to-day running of the business and plan for the future.
When PDR’s are handled well, they help facilitate an exchange of ideas, expectations, and goals. But when PDR’s are handled badly, they can foster anxiety for both parties. There is a difference between off-the-shelf PDR’s that are treated as a box-ticking exercise, and a genuine Performance Development Review, which is tailored to the exact requirements of the organisation and the employee.
How Can PDR’s support Career Development?
Personal Development Reviews provide the opportunity to discuss any future career plans or aspirations. The manager should offer advice where appropriate and agree on any actions that need to be followed up after the meeting.
There may be some limits to the support the organisation is able to offer in terms of career development, so It is important to acknowledge this at the time. Honest discussion will allow both parties to explore alternatives and agree realistic plans.
What type of goal setting framework should be used during a PDR?
When it comes to goal setting, there are a range of different approaches and frameworks, including:
MBO’s - Management by Objectives is the process of defining top company goals and using them to determine an individuals objectives. Everyone can see their objectives and how individual accomplishments impact the organisations priorities, which can have a huge impact on productivity.
SMART - SMART goals were developed to provide structure and support to any type of organisational or personal goals, through the process of making them Specific, Measurable, Achievable, Realistic and Time bound. By structuring goals and objectives in this way individuals can maintain a focus, meet deadlines and hit targets. It can also help to prevent overwhelm, by focussing on breaking goals down into manageable tasks.
KPI’s - Key Performance Indicators are structured to keep the organisational objectives at the forefront of decision making. Everyone takes ownership of their own KPIs, which helps to ensure that the overall goals of the organisation are achieved.
OKR’s - Objectives and Key Results are the most recently developed goal management tool and work by setting goals on a quarterly basis. The Objective is qualitative and outlines what the organisation or department want to improve, while the Key Results are quantitative and define how to know if the objective has been achieved. OKR’s are driven by “initiatives” to help achieve the objective (e.g. projects and plans) and weekly “check-ins” to help track accomplishments and outline upcoming plans.
Although they all differ in terms of their specific rules and processes, they are used during the PDR to simplify and manage goals to increase the likelihood of success.
How Danton HR Can Help with your PDR
Danton HR can help you to create a PDR framework that is built around the needs and goals of your business. We understand the complexities of running a business and appreciate the individual needs of both managers and employees.
If you would like to learn more about Personal Development Reviews or if you’d like to find out how Danton HR can help!