Are Performance Reviews a Thing of the Past?
By Jared Brox
A study conducted by research and consulting firm, Burke International, reveals that of the 70% of employees who receive annual performance reviews, less than half believe they are effective.
A disturbing statistic given that the basic idea behind a performance review is not only to help the development of individual employees, but also to help ensure a company’s future viability by maintaining a strong productive workforce overall.
So, the question is, are annual performance reviews even worth the time and effort?
The answer is yes… and no. It really depends on whether a company is willing to commit to the process. When done correctly, performance reviews are a great opportunity to praise employees’ hard work and dedication or offer coaching in areas where they are lagging behind. However, when performed incorrectly, a performance review could easily turn into a blame session. Performance reviews rife with insincerity and empty promises will ultimately do more harm than good.
While no two companies are alike, and what works for one business isn’t guaranteed to work for another, there are some common, universal pitfalls to avoid when conducting performance reviews.
- Performance reviews are not merely a “checklist” task.
It’s easy to think of employee performance reviews as just another item on your to-do list. They typically only happen once a year and without a plan for follow-up or continual coaching, both employees and managers are more likely to consider the task complete until the next year.
Performance coaching should be ongoing, not a once a year event. A sustained emphasis on excellence throughout the year is more likely to instil productive behaviours in your workforce.
- Performance reviews can’t just skim the surface.
One of the most important components of a review is open communication. Whether out of the employees’ fear of losing their jobs, or a manager wanting to avoid conflict, often times true feelings are reserved during performance reviews.
Strive for honest and open back-and-forth communication. The other party may not be aware of an issue and open discussion could be the catalyst for change.
- Performance reviews shouldn’t feel confrontational.
A performance review should focus on highlighting successes and coaching through problem areas. You want your employees to regard the performance review as a positive experience, not a defence trial. This cannot happen if employees feel like they are engaging in a fight to prove they deserve to keep their jobs.
Be clear about the purpose of the performance review. When your workforce understands the value of performance reviews, they are more likely to buy into the process.
- It’s not a one size fits all occassion
From industry to industry and employee to employee, it is important to choose a performance review model that makes the most sense for your workforce. Reviewing a manufacturing employee is a much different process than reviewing an office manager. It is perfectly acceptable therefore, to modify your process to ensure the most productive outcome.
There are probably about as many performance review models as you have employees. Of course, it does not mean you have to use a different process for each employee, but it is important to find the method that makes the most sense for different job positions.
While there is a growing movement to do away with performance reviews altogether, based on what is best for the company and its employees, ultimately the decision whether or not to offer performance reviews rests with the business owner. If the decision isn’t up to you, as a leader you can still strive to keep the process engaging, making the time and effort spent worthwhile.
Express Employment Professionals
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