The days of the casual midyear review are over. As the economy gets worse, the midyear assessment needs to be taken more seriously.

With the business climate growing more uncertain, employees are concerned about job security, and bosses are feeling increased pressure to make ends meet.

So here’s how companies are using their midyear discussions to achieve those goals, according to a recent story in Business Week:

1. Adjusting benchmarks – Companies are seeing that the goals they set in January are less likely to be reached. Businesses are using these sessions to evaluate what can more realistically be achieved in this difficult climate.
2. Implementing tougher grading policies — Faced with the prospect of more layoffs as business continues to falter, some companies are using the review sessions to warn employees about higher work standards and increased accountability.
3. Motivating employees — Though some companies use these meetings to cut employees, others are looking for ways to put workers’ minds at ease. Focusing on employees’ achievements — not just areas they need to improve — will boost positive energy among workers and ultimately make them more productive.
4. Increasing efficiency – A few companies are pulling all the stops to ensure review sessions are as effective as possible. One business has asked its managers to have monthly check-ins with workers rather than semi-annual ones. Another company is providing leaders in each department with educational resources on how best to run assessments.
5. Dangling carrots, but not money — Uncertain financial times have a way of focusing attention on the best of the best. But for many employers, financial bonuses are just not an option this year. The midyear review will instead be an opportunity to discuss promotions and stretch assignments that will keep top talent focused and challenged, even if raises aren’t handed out.

Tags: goals, incentives, performance reviews, raises